Navy Federal Credit Union: 60% of active duty and about 40% of veterans believe VA loan will take longer to process and delay home buying process
NORTH CAROLINA, USA — Buying a home isn’t easy, especially in a competitive market, but misconceptions about VA loan program create challenges for service members on their path to home ownership.
VA loans come with little to no down payment, lower interest rates, and make home ownership within reach for veterans. However, a loan expert said veterans were struggling to buy homes and he was seeing one offer after another being turned down.
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“In today’s market, it’s very difficult for anyone to get a home under contract. But it’s especially hard for veterans, often being told by the wrong people, that sellers are being told not to accept offers that are backed by a VA loan or an FHA loan,” said Scott Hastings, agent. loan. , HomeBridge Financial Services.
Hastings has worked in the industry for 20 years to help people like US Air Force veteran Andre Lima and his family who are back in search of their dream home.
“It’s the next step in life to create, you know, our place for our family to gather and spend time together,” Lima said. “Whether it’s hanging out in the garden or having your meals, whatever it is, it’s going to be our place and it’s going to be something we can make our own. So it’s very important to us.”
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They hope to take advantage of the VA loan program.
“This benefit allows veterans to grab a home without having the upfront money,” Lima said.
But they are skeptical about the challenges that can arise from using the loan.
“The VA loan will take a little longer and require a little more work from the sales people…and might not seem that attractive compared to a cash offer or conventional loans,” he said. .
One of the many misunderstandings according to Hastings is preventing service members from using their hard-earned perks and causing some sellers to overlook their offers.
“They think sellers will be burdened with additional costs, which is not true,” Scott Hastings said. “The new VA loan has no cost to sellers. They also think appraisers will be unduly harsh on properties, which is also not true.
In a new report – the Federal Naval Credit Union found that many veterans are confused about the use of the loan. Their data indicates that nearly 60% of active duty and about 40% of veterans believe the VA loan will take longer to process and delay the home buying process.
Hastings said that wasn’t the case and it wasn’t the only fight the veterans faced. They find it difficult to compete.
“They’re just getting beat up by people with conventional financing, and especially people offering a much higher purchase price,” Hastings explained.
His message to sellers; think twice before putting deals with VA loans at the bottom of your pile. He adds that the program helps those who have served this country realize their dream of buying a home.
Meanwhile, Lima and her family remain hopeful.
“Now that our budgets are a little higher, we are looking at some houses that are a little more finished. I am optimistic,” Lima said.
Hasting recommends veterans work with an experienced realtor with years of experience to help navigate the process. He also urges veterans and those in the housing industry to learn more about the program and its benefits.
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