The Impact and Benefits of VA Loans for Veterans and Service Members

The VA loan program has had a significant impact on the economy and the lives of Veterans and service members, according to a recent report. The analysis found that the program has accounted for as much as 11% of new home mortgages in the postwar building boom, with total VA loan volume reaching $447 billion in 2021.

Chris Birk, vice president of mortgage insight at Veterans United, emphasized the importance of the VA loan program in helping millions of Veterans and military families build wealth and close the homeownership gap for women and minorities. Veterans United was ranked as the top-producing VA lender in the country in fiscal year 2023, originating $17.6 billion in volume across 58,253 loans.

Survey results showed that 93% of veterans and service members used a VA loan to purchase their first home, with 80% of them being 34 years old or younger. The VA home loan received the highest satisfaction ranking of all military benefits, with 89% of respondents expressing their satisfaction.

The analysis also revealed that the use of VA loans has surged since the Great Recession, providing homeownership opportunities for younger buyers, female veterans, and veterans of color. The report highlighted that race-based homeownership gaps are smaller in the veteran population compared to the civilian population.

Despite the success of the VA loan program, misconceptions still persist among veterans and service members. Three in four respondents believe at least one myth about the VA loan, such as thinking that VA loans take longer to close or that they cost more than other loan types. It is important to dispel these myths and educate both home sellers and real estate agents about the benefits of VA loans to help Veterans make the most of their earned benefits.

Overall, the VA loan program has played a crucial role in supporting Veterans and service members in achieving homeownership and building wealth, and efforts to address misconceptions and increase awareness about the program are essential to ensure that more individuals can benefit from this valuable resource.