U.S. Sen. Sherrod Brown, Chair of the Senate Committee on Banking, Housing, and Urban Affairs, and Sen. Mike Braun have announced the Senate passage of their legislation, the VA Home Loan Awareness Act, to help inform veteran homebuyers of their eligibility for the VA home loan program, which will assist more veterans in achieving the dream of homeownership.
“This is an important step toward making the dream of homeownership a reality for more military families and veterans. Ohioans who have served our country should have every opportunity to get the VA home loans they’ve earned,” said Sen. Brown. “The House should quickly approve this bill so it can be signed into law.”
The VA Home Loan Awareness Act aims to increase awareness of the VA home loan program by:
- Adding a disclosure informing veterans they may be eligible for a VA home loan under the Uniform Residential Loan Application (Form 1003);
- Directing applicants to consult their lender for more information about the VA home loan program;
- Instructing the Government Accountability Office (GAO) to conduct a review and report to Congress regarding lenders adoption of the URLA form updates.
An underutilized resource
The VA home loan program was designed to assist veterans and their spouses achieve homeownership by offering perks for financing home purchases, including no down payment, no private mortgage insurance (PMI), and oftentimes, lower interest rates than conventional FHA loans. Despite these benefits, only 13% of veterans ever utilize their VA home loan benefit.
Among veterans who choose not to use the VA loan when purchasing a home, 33% of them say it was because they were not aware of the program. This rate is even higher among surviving spouses as 46.3% of them said they did not know they were eligible for a VA loan at the time of their purchase.
Studies show that on average, only half of all veterans say they were informed of the benefits of the VA home loan program by their lender.
“Those who have risked their lives for our freedom should be able to afford a house in the country they’ve sworn to protect. I’m glad that the Senate has passed this bill to inform Hoosier veterans of the benefits they that have earned and deserve,” said Sen. Braun.
Celebrating a milestone
Celebrating its 80th anniversary recently as part of the original GI Bill, the VA loan program has contributed $3.9 trillion to the U.S. economy, and VA loans rank as the top benefit veterans and military members receive for serving their country, according to a new survey from Veterans United Home Loans.
For the survey, Veterans United surveyed 500 veterans and servicemembers to get their insights on the VA loan. In addition, the company also engaged University of Missouri Economics Professor Joseph Haslag to determine what the VA loan benefit has meant to the American economy over its eight decades in existence.
The economic impact analysis considered what the economy would have looked like if the VA loan had not existed. It found the loan program has withstood various market changes, accounting for as much as 11% of new home mortgages in the postwar building boom. Total VA loan volume in 1947 was more than $3 billion, compared to its $447 billion peak in 2021, according to the study.
The U.S. Department of Veterans Affairs (VA) has also led the charge to maintain awareness of the VA loan as a bona fide option to avoid homelessness, recently awarding $26.8 million in legal services grants to a total of 108 public and non-profit organizations, all with the goal of increasing access to legal services for eligible U.S. veterans experiencing or at risk for homelessness.
These grant funds, made available as part of VA’s Legal Services for Homeless Veterans and Veterans At-Risk for Homelessness Grant Program, more than double the total dollars and mark a 37% increase in grantees over last year’s inaugural grant cycle.
“Every veteran deserves access to safe, affordable and permanent housing, and we know that legal support is among the most needed services by Veterans experiencing or at risk for homelessness,” said VA Secretary Denis McDonough. “Through these grants, we are working hard to ensure veterans’ unique civil legal needs are met and drive towards our ultimate goal of ending homelessness for all veterans and their families.”
