Serving Those Who Have Served

Give more for those who were willing to give their all

Insider

Contributing Writer

We’ve talked a lot about working with unique subsets of borrowers before, but arguably none are more unique or worthy of attention than our veterans. They also make up a not insignificant subset of the population at an estimated 7% of Americans, according to the Census Bureau.

So, how are you supporting this important group of borrowers? The U.S. Department of Veteran Affairs, more commonly referred to as the VA, has products designed to promote veteran homeownership, but those products may not be the best fit for every borrower. And this is a demographic that is overall eager for homeownership, with a higher homeownership rate than civilians. According to Census data reported by Military Times, 80% of veterans own a home, compared to 60% of non-veterans.

This group of borrowers wants to buy homes — are you prepared to serve them? Let’s look at how to best serve these borrowers who have served us.

Who qualifies?

I mentioned that the VA has products designed for veterans, but it’s important to note that access to these products is not restricted to those who have formerly served in the armed forces. Those eligible for VA loans include active duty servicemembers, as well as reservists, National Guard, surviving spouses, and even certain government employees.

There are a few additional stipulations from the VA that determine eligibility, such as length of service or service commitment, duty status, and character of service.

To better support your borrowers, know the eligibility guidelines for the various VA products so you can better connect them with the products and programs that are right for them and their specific situation.

What’s Best For Them?

The VA has some great products for veterans. The VA has a loan with 0% down, which can be a great option for first-time buyers. To qualify financially, the applicant must have sufficient credit, income, and a valid Certificate of Eligibility (COE). A COE is a document provided by the VA stating the dollar amount of eligibility available, and it can be obtained by the lender if the veteran does not have one.

The military community is a close-knit one. Veterans want to work with businesses and individuals who can speak their language and understand their situation.

VA loans can be used for a lot of different cases. Veterans can buy a home or condominium unit in a VA-approved project, build a home, simultaneously purchase and improve a home, make energy-efficient improvements to a home, repair or improve a residence they already own, buy a manufactured home and/or lot, or even purchase a farm residence.

Despite all these uses, however, a VA loan may not always be the best option for veterans, especially if they are not first-time buyers. Though the VA offers 0% down options, the funding fee may not make it worth it if the borrower has funds for a down payment or equity from the sale of a previous home. Do the math and consider all the products your borrowers are eligible for so you can ensure they are getting the best option for their unique situation.

Speak Their Language

The military community is a close-knit one. Veterans want to work with businesses and individuals who can speak their language and understand their situation. Even the small nuances like knowing what an LES (Leave & Earnings Statement) is and how to read it can go a long way in building credibility with this community.

80% of veterans own a home, compared to 60% of non-veterans.* This group of borrowers wants to buy homes — are you prepared to serve them?

* Census data reported by Military Times

Veterans also want to work with someone they can trust. This is the same for any borrower, but the way in which you build that trust may look different for this group. Be upfront and honest and communicate clearly about the options available to them.

Being a strong resource for veterans is not only a great way to give back to those who have given so much to our country but also a great way to build a network of referrals with a new group.

Arthur Ashe is quoted as saying, “True heroism is remarkably sober, very undramatic. It is not the urge to surpass all others at whatever cost, but the urge to serve others at whatever cost.” So, let’s be prepared to help veterans own a home in the country they have protected and sacrificed for. Do your homework on this group to make sure you know their needs, speak their language, and can provide the right loan products for them.