As we celebrate Veterans Day, we not only honor the brave Americans who have selflessly served our nation, but we also reflect on the promises we’ve made to them in return.
One of those enduring promises, the GI Bill, celebrated a major milestone this year, turning 80 years old in June. This landmark piece of legislation helped fuel the postwar boom and has transformed millions of lives.
Credit: Handout
Credit: Handout
Housing still lives at the heart of this commitment.
A cornerstone of the bill, the VA home loan benefit was designed to make homebuying easier for those who serve. These government-backed loans jump-started the middle class, helping veterans and service members buy homes without the need for a down payment or top-tier credit.
Eighty years and nearly 30 million loans later, the VA loan program has quietly revolutionized homeownership in this country, fueling both individual prosperity and national economic growth.
VA loans have added as much as $3.9 trillion to the American economy, according to a first-of-its-kind economic analysis conducted this summer by a University of Missouri economist. A companion survey from Veterans United found that the home loan benefit has the highest satisfaction rating of any veteran benefit.
Veterans and service members have turned to VA loans in record numbers since the Great Recession. The VA has backed more loans since 2007 than it did in the preceding 36 years combined.
This hard-earned benefit is also playing a pivotal role in addressing systemic inequalities in homeownership. Military service is narrowing the homeownership gap for female veterans and veterans of color.
Female veterans, who are projected to comprise nearly 20% of the veteran population within 25 years, have higher homeownership rates than their civilian counterparts — a four-point gap that reached a five-year high in 2022, according to Census data.
Similarly, Black veterans face a smaller homeownership gap compared with white veterans than their civilian peers do. The gap between Black and white veterans is 18.5%, significantly less than the nearly 30-percentage-point disparity among civilians.
The VA home loan benefit is instrumental in these advancements, removing traditional barriers such as the need for a down payment or exceptional credit.
Despite these successes, challenges persist. Misconceptions about VA loans remain widespread, with the Veterans United survey finding that 75% of veterans and service members believe at least one myth about the program.
Some common misconceptions include beliefs that VA loans come with higher average interest rates or are a one-time benefit — neither of which is true. Home sellers and agents might be hesitant to accept VA loan offers because of outdated or flat-out bad assumptions about the quality of veteran buyers and the strength of low- or no-down payment loans.
It’s crucial that we address these challenges head on. Education is key — not just for veterans but for all stakeholders in the homebuying process.
With rising housing costs and economic uncertainties, this benefit is more critical today than ever. It offers a pathway to homeownership for those who might otherwise be shut out of the market, providing stability and the opportunity to create generational wealth.
This Veterans Day, as we pay tribute to those who have served, let’s also reaffirm our commitment to supporting them in tangible ways. The VA home loan benefit has proved to be a powerful tool for positive change.
Chris Birk is the author of “The Book on VA Loans: An Essential Guide to Maximizing Your Home Loan Benefits” and vice president of mortgage insight at Veterans United Home Loans.
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