Dangerous and discriminatory misconceptions about the purpose of home loans by the Department of Veterans Affairs could be holding hard-working, well-prepared veterans away from the American dream of homeownership, says a veteran and team leader. Cheryl Arroyo writes.
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As a military veteran and a real estate professional who works closely with veterans, I have seen firsthand the unique challenges veterans face when navigating the housing market. Unfortunately, these challenges are often rooted in misconceptions and outdated prejudices about VA home loans.
I recently experienced an example of this bias. I contacted a listing agent on behalf of a veteran client who was interested in a property. The listing did not specify whether the seller would take the offer using VA financing, so I emailed the listing agent to inquire.
The voicemail response I received was disappointing and frankly disgusting. The agent implied that if my client had a VA loan, he might be financially unstable or need help purchasing a home. She asked if she understood the price of a $350,000 home and said that “pre-approval may be required” before her client could view the home.
She also assumed that the veteran was male, when in reality, my client was a highly educated female veteran currently pursuing a master’s degree in civil engineering. This was despite having enough savings to cover the closing costs and make a strong offer in this highly competitive market. housing market.
Misconceptions about veterans and VA loans
This agency assumption highlights a larger problem: widespread misconceptions about veterans and the benefits they have received through their military service. Veterans come from all walks of life, with varying experiences, education levels, and economic circumstances.
Yes, some people may face hardship or become homeless, but others are financially stable and often have multiple sources of income. It is not only wrong to assume that taking a VA loan is indicative of financial instability, but it is also discriminatory.
VA loans are a hard-earned boon for veterans, with benefits such as no down payment and competitive interest rates. This program is designed to help people who have contributed to our country achieve homeownership, regardless of their economic circumstances.
However, taking a VA loan does not mean the buyer has a charitable need or cannot afford the home. It simply means that you are using the profits earned through the service.
Why VA loans are misunderstood
There seems to be a lack of education in the real estate industry about what a VA loan actually means. One of the main features of VA financing is that because the home is government sponsored, the home must meet certain safety and livability standards. This requirement allows veterans to purchase safe and livable housing. It has nothing to do with the purchaser’s financial situation.
Some sellers and agents mistakenly believe that VA loans are complicated or take longer to close than traditional loans. However, with proper preparation and understanding, VA loans can go just as smoothly as any other type of loan. What you really need is more education and a willingness to understand the unique benefits and requirements of VA loans.
Enabling Veterans to Make Informed Decisions
VA loans are a great tool, but they aren’t always the best option for all veterans. It’s important for veterans to work with a real estate agent, lender, and possibly a financial advisor to make informed decisions based on their specific needs and goals.
For example, some veterans may find that a conventional loan is a better fit for the type of real estate they want to purchase, or that they want to use their savings for other purposes (such as their children’s education or starting a business). Some people choose to use .
Importantly, veterans should be given the freedom to make these decisions without being criticized for choosing to take advantage of the benefits they have earned through years of service.
A call to action for the real estate industry
The experience of listening to this agent’s voicemail reminds us that as real estate professionals, we have a responsibility to better serve our seasoned clients. This starts with learning about the benefits of VA loans and countering the outdated stigma surrounding them.
We must respect the choices veterans make during the homebuying process and ensure they have the support and resources they need to succeed.
At the end of the day, it’s all about honoring the service and sacrifice of our veterans. By working to remove barriers and misconceptions, we can pave the way for more veterans to achieve the dream of homeownership – something they truly deserve.
Cheryl Arroyo is a team leader, associate broker, and veteran. She works at Iron Valley Real Estate in Berks. Connect with her on Instagram or Linkedin
