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.
Read more: NAR and VA Release New Video Series on VA Home Loans
Source: “Spotlight on VA Loans,” Navy Federal Credit Union (May 2022)