A Very Large Percentage Of Veterans Do Not Have A VA Mortgage

 

George Souto, a Connecticut mortgage lender, makes a great point here in the blog post he has written.

Why do so few veterans have VA loans? Here in the San Francisco Bay Area, the maximum loan amount in some areas is as high as $1,050,000! Loan amount is not an issue, nor can the down payment requirements since it does not require a down payment.

He also points out one of my own foibles - we in the industry do not ask our clients if they are veterans often enough. I am going to try to improve on that!

I read an article this past month in National Mortgage News titled "Underused VA Mortgage Program Makes Inroads" by Brian Collins.  The article contain a statistic I found interesting, it stated "Of the 16.4 million active duty service members and military veterans with mortgages, less than 12% have a loan guaranteed by the Department of Veterans Affairs."  That mean A Very Large Percentage Of Veterans Do Not Have A VA Mortgage on their home.

I should have found this surprising given VA Mortgages are a "0" money down mortgages with NO PMI, but I did not.  The article tried to give a number of reasons for why so few Veterans have a VA mortgage on their home, such as:

  • Fees
  • Limited Seller Paid Contributions (4%)
  • Requirements and limitations other loans do not have.
  • Longer approval time

While all of these have some merit I do not see any of them as an obstacle for why so few Veteran Homeowners have a VA Mortgage on their home.  What I do see as the main reason BY FAR for why A Very Large Percentage Of Veterans Do Not Have A VA Mortgage on their home is because of Loan Originators and Realtors/AgentsLoan Originators and Realtors/Agents overall do a bad job of asking Borrowers/Buyers if they are a Veteran so we can make them aware of their VA Mortgage Benefit.

If you are a Loan Originator or Realtor/Agent ask yourself two small simple question:

  • Do you ask your Borrowers/Buyers consistently if they are Veterans?
  • When was the last time you asked a Borrower/Buyer if they are a Veteran?

I would guess if those who are answering those questions are answering them honestly, the answers would be:

  • No
  • I can't remember

If those were your answers then I would suggest you ask yourself one more question, "why not?"  Then follow up the answer, by committing to asking your Borrowers/Buyers if they are Veterans on a constant bases.  If each and every Loan Originator and Realtor/Agent were to make that commitment, and follow through with it, the trend of A Very Large Percentage Of Veterans Who Who Do Not Have A VA Mortgage on their home would change to a very large percentage of veterans DO have a VA Mortgage on their home.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Would you like to talk to Phil - call or text (650) 222-0386

Phil Caulfield NMLS #386911 APMC #1850 has been helping people obtain mortgages since 1985. The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation."
 
Comment balloon 4 commentsPhil Caulfield • July 07 2014 08:19AM

Comments

Phil, do you think the longer approval time would fly in our area, with the market so very competitive? It's great to know about VA loans, and the very high loan amounts.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) over 4 years ago

Hi Lottie - great question! The approval time is not that much longer if the Veteran is prepared with his DD214 eligibility certificate and all the normal financial documents upfront.

I think there are sellers out there who would be willing to wait a little longer to sell their home  to a Veteran if they possibly could!

Posted by Phil Caulfield, I Get The Loans Done That The Big Banks Don't! (Guarantee Mortgage) over 4 years ago

That's what I'm thinking, too, Phil. How much time would one need to allow for closing? I'd like to keep this program in mind.

Posted by Lottie Kendall, Helping make your real estate dreams a reality (Compass) over 4 years ago

I would say 30 days for closing a VA loan. Again it depends on how well prepared the veteran is.

 

Posted by Phil Caulfield, I Get The Loans Done That The Big Banks Don't! (Guarantee Mortgage) over 4 years ago

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