Tips & Special Topics
VA Loan Surge could follow U.S Military Homecoming
Added March 10, 2009 | Updated March 10, 2009
In an interview with Matt Lauer on February 2, 2009, President Barack Obama said he would begin withdrawing U.S. Troops from Iraq within a year. He stated that the United States is in a position to start putting more responsibility on the Iraqis, and that he would more clearly define a withdrawal plan in the coming days. That plan has been established and President Barack Obama has decided that all U.S. combat troops are to be removed from Iraq by August 2010 and all remaining troops by the end of 2010.
Implementation of the plan will be gradual at first. On Sunday, March 8, 2009, the U.S. military announced that 12,000 troops would be exiting Iraq by this coming September, leaving the majority of troops to exit at a later time. There are currently about 135,000 U.S. troops in Iraq.
With the imminent return of U.S. Military members, a surge on VA mortgages is likely to follow. VA Home Loans began in 1944 to provide returning war veterans with a means to become homeowners. The original reasoning behind the VA Loan program was that when soldiers are away at war they may have missed opportunities to climb the same socioeconomic ladders as their civilian counterparts. Today’s VA Loans are available to most military personnel whether they fulfill their service during war or peacetime. Certainly, veterans’ mortgages may help put returning Iraq War veterans on a level playing field with the rest of America in terms of homeownership.
Many of the U.S. Troops were deployed to Iraq when the real estate market was booming. A lot can happen while away at war. Since the War in Iraq started in 2003, the U.S. economy has taken a dramatic downturn and mortgage interest rates dropped to historic lows at the end of 2008 and beginning of 2009. Many returning troops may be coming home to the best time in years to take advantage of their VA Loan entitlements.
Many returning soldiers will likely decide now is the right time to refinance an existing loan, or to purchase a home, using the VA Home Loan Program. With zero down, 100% refinancing, no private mortgage insurance and no prepayment penalties, the VA mortgage program is one of the most flexible of all those out there. Anyone with military affiliation who is interested in home ownership should explore the advantages of the Program.
Amazing as it sounds, some returning troops may not know that the VA Home Loan Program exists. A report on military home loans from the U.S. Department of Veterans Affairs revealed that out of the nearly 24 million of those with U.S. military affiliation, less than 10% had taken advantage of their VA loan entitlements. And, 20% of all U.S. veterans do not even know they have VA Loan entitlements.
The war in Iraq began on March 20, 2003 with an invasion on Iraq by a multinational force. VA Loan eligibility has a lot to do with duration of service. Whether they enlisted before or after the Iraq war began, many more soldiers are now qualified to benefit from the VA Loan Program.
Historically, every major U.S. war and conflict has resulted in an increased numbers of veterans who qualify for VA Loan entitlements. Troops returning from the war in Iraq from now to the end of 2010, and other qualified veterans, may contact a VA Mortgage Specialist to learn more about using their VA Loan entitlements to refinance or purchase a home.
