Young Military Families Are Successfully Buying Homes In A Competitive Market

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VA purchase loans for young gen Z veterans — generally aged 18 to 24 — increased by 123% over the past year, while, for millennials, they were up by 16%, CNBC reports. In fact, loans for millennial and Gen Z veterans and service members accounted for 52% of all VA purchase loans in early 2021. Thanks to these loans, young military families are able to get on the property ladder in an increasingly competitive market.

buying-homes

No down payment and better interest rates

Numerous veterans, service members, and eligible military spouses rely on VA purchase loans to buy or refinance their homes. With a VA purchase loan, there’s no need to make a downpayment or buy private mortgage insurance. In some cases, veterans may also be able to qualify for multiple loans. This may be necessary, for example, when a service member receives orders to change bases. Rather than selling their existing home or renting a new one, a second loan can allow the individual to purchase a home in the new location. Rates on these loans are also much more competitive than standard loans. A 30-year fixed rate VA loan has an interest rate of around 2.75% on average. In comparison, a regular 30-year fixed rate mortgage for non-veterans typically comes with an interest rate of 3%.

Helping young homebuyers

With the help of VA purchase loans, young military families are finding success in a competitive real estate market. For example, Eddie Valdivia, 34, and his wife, Vanessa, 36, bought their first house in Palmdale, California last year. Eddie’s past service as a veteran serving eight years in the Navy meant the couple was eligible for a VA purchase loan. Being able to purchase a home without making a 20% down payment along with better interest rates was key to the couple’s success.

Advice for military homebuyers 

Veterans and active duty service members should use a lender already familiar with VA loans to help ensure the homebuying process is a smooth and speedy one. Additionally, in today’s competitive market, buyers should act fast when they see a property they want, as well as anticipate having to make numerous offers before being successful. It can also help to make a down payment when using a VA loan; this ensures lower funding fees and potentially small monthly payments.

VA purchase loans can open up doors for young military families. No down payment and low interest rates are crucial for making home ownership within reach.

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Young Military Families Are Successfully Buying Homes In A Competitive Market
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VA purchase loans can open up doors for young military families.
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