Last year was a brutal wakeup call for most potential homebuyers in this country, U.S. veterans not excluded. According to a recent Veterans United Home Loans report, the COVID-19 pandemic forced nearly half of all veterans to change their home-buying plans in 2021.
However, the report, which highlights a survey conducted by global research firm Kantar in collaboration with Veterans United Home Loans, found that the picture is much more rosy in 2021. Veterans across the U.S. are far more bullish in their plans to purchase a home this year, with 34% of those surveyed saying they plan to buy before 2022.
"There's incredible optimism among veterans when it comes to home-buying in 2021 and beyond," Chris Birk, VP of mortgage insight at Veterans United Home Loans, tells us. "Most Veterans think this year will be a great time to buy, and about 1-in-3 are planning to turn that dream into reality. With low rates likely to linger and the $0 down VA loan benefit at their disposal, younger veteran and military buyers in particular are primed to break into the housing market."
There is also incentive for National Guard members to purchase a home this year, as a recent law that passed gives thousands of qualified members access to the VA home loan benefit. H.R. 7105, the "Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020," gives the National Guard a clear path to homeownership.
Other key findings from the report include a slight majority of veterans (51%) believe homes will become less affordable this year, while 58% expect mortgage rates to increase. Also, most veterans overestimate the kind of down payment and credit score they need for a loan. Nearly 90% of veterans believe they need at least a 670 FICO score in order to secure a loan.
Credit: Veterans United Home Loans
To view the report and for a full breakdown of Veterans United Home Loans' methodology, click here.