VA Home Loan Guarantee – Finally Something Done Right! CPT (r) Tyler Merritt November 12, 2016 Veteran Inspired 7,067 It’s that time of year when we start discussing the great triumphs and successes that our veteran family have celebrated throughout the years. There’s the victory homecomings, the families reunited and just getting to plain kick back and relax in relative safety again. Veterans Day has also been a time in which many people focus on veterans issues and rededicate themselves to service to this great nation, both in and out of uniform. But there is an interesting veterans story that often goes unreported that I wanted to shine a light on. It’s true that oftentimes veterans fail to use the benefits to which they are entitled (and have earned flat out!) due to not even knowing about them. And, just as was the case of the GI Bill for those World War II veterans, these benefits end up making the country a better place as well. The Overlooked Benefit I can count on my hands the number of veterans I know who have taken advantage of this particular benefit, and considering I know a whole lot of veterans, that’s far too few. The VA offers a special offer for veterans looking to purchase a home. It’s the VA’s own loan guarantee program. It’s one of the best mixtures of government services and private industry that we as a nation have ever put together to better serve our nation’s veterans. What the program does is guarantees a portion of a private loan through a private bank, which allows the bank to offer far better terms than most people can get otherwise. And the crazy part? You can get the loan guarantee even with poor credit. It’s an example of an issue where the government decided to trust the discipline instilled by the military into service members. And it’s worked incredibly well. Why This is So Huge Veterans aren’t always the best with money. We’ve seen this in many situations, whether it’s a brand new Soldier/Sailor/Airman/Marine who goes to the nearest new car lot and buys something with double digit interest rates or it’s the guy who on a deployment spends his check online for things he can’t even use in Afghanistan, it’s just part of living the life. Statistically speaking, veterans tend to have higher debt-to-income ratios and more “spotty” credit scores. This would normally garner really poor interest rates — if the loan could be secured at all. But for veterans, this hurdle isn’t nearly so high as it is for civilian counterparts. The VA offers assistance with paying closing costs, refinance a mortgage and other aspects of lending like that. And it’s gotten some major results. Veterans in the program are far less likely to lose their homes in foreclosure and repayment rates outperform the private sector. Veterans Are Special This is something that we don’t quite discuss enough. The benefits in character and integrity that citizens and residents gain from military service is a big deal. It’s this fundamental drive and core values that lead to the success rates this program has seen. If you are a veteran and considering buying a home, refinancing a mortgage or a have even whole host of other needs, get in contact with a VA rep in your area. You wouldn’t believe the services they offer which can help make your life just that much richer. God bless this country.
