Mortgage loans backed by the Department of Veterans Affairs can help make homeownership more attainable for military families with its offers of zero-down-payment loans. But many vets or service members may not know what’s required to use one or how they work, a new study shows.
A new study of 1,000 active-duty service members and veterans by the Navy Federal Credit Union found that nearly all respondents were aware of what a VA loan is, but many respondents did show some confusion about their use. Some of that confusion included:
- Seventeen percent of veterans and 45% of active-duty members believe a down payment of more than 20% is necessary.
- About half of active-duty members and nearly one-third of veterans believe a VA loan can only be used once.
- Nearly 60% of active-duty members and 41% of veterans believe VA loans have longer processing times.
- Fifty-eight percent of active-duty members and 40% of veterans think VA loans will have delays due to all the paperwork involved.
- Many of the respondents believe VA loans don’t provide much savings compared with conventional loans.
The National Association of REALTORS® and the Department of Veterans Affairs recently launched a joint video series for REALTORS® to help more veterans and active-duty buyers purchase a home using VA loans. The two-part series aims to dispel misconceptions about the VA Home Loan Guaranty Program and guide REALTORS® and buyers through the process.
“Veterans and service members face unique challenges when purchasing a home, especially in this strong housing market,” NAR President Leslie Rouda Smith, who moderated the video discussions, said. “These videos will help our members navigate the VA home loan process and maximize its benefits for veterans.”