Two-thirds of Americans own their own homes, and millions more view homeownership as a strategic life goal. Interestingly, one demographic that consistently ranks high in homeownership is veterans. An estimated 80% of veterans own their own homes, many through VA loan benefits provided by approved mortgage providers. Average homeownership rates in the United States range from the low 60s to the high 60s, generally following economic and inflationary cycles.

And yet, trends with veterans reflect stable rates of homeownership. This is largely the result of the partial government backing, through the Department of Veterans Affairs. It’s also directly correlated with the quality of veterans’ mortgage lenders, including competitively priced interest rates, zero down payment requirements (no PMI), and the ease with which eligible veterans can qualify for VA home loans. Homeownership rates among veterans consistently exceed those of the equivalent demographic in civilian society.

Look at the side-by-side comparisons by age group (Year: 2023):

• 25–29 years old – vets 51% – civilians 35%
• 30–34 years old – vets 67% – civilians 50%
• 35–39 years old – vets 79% – civilians 60%
• 40–44 years old – vets 83% – civilians 67%
• 45–49 years old – vets 87% – civilians 69%
• 50+ years old – vets 91% – civilian 77%

Source: Veteranetwork PSU EDU

Intelligent Home Buying Tips for Newbies

Every seasoned realtor will tell you: some truths in real estate never change. We’ve all heard the most famous advice for aspiring homeowners – location, location, location. It was true then, and it is true today. Where you buy real estate is more important than what you buy. Equally important is the second rule of the property market: it’s better to buy the cheapest house in the most expensive neighborhood than the most expensive house in the most affordable neighborhood. Experts agree that if buyers follow these rules, they’re halfway across the finish line.

Of course, there is much more to the property market than meets the eye. Let’s take a look!

• As a civilian, your down payment can help you avoid PMI. But only if you put 20% down. Anything less than 20% automatically adds extra costs to your monthly repayment.
• As a veteran, you don’t need a down payment on a mortgage. That’s one of the most important VA loan benefits available to veterans, service members, and eligible family members.
• Always shop around for the best mortgage rates. Never accept a high rate as your only option. Even a fractionally lower interest rate can save you a fortune over the lifetime of your mortgage.
• Your credit score is an important determinant of the mortgage you qualify for. Improve your credit score in anticipation of applying for a mortgage to get a better rate.
• It’s always prudent to read up about the requirements of mortgages, cash purchases, and the attendant benefits. Informed buyers are far less likely to be swindled in real estate transactions.
• As a veteran, a VA home loan is often provided at comparable or improved interest rates (compared to traditional mortgages). Veterans should always apply for mortgages through a reputable VA lender.
• When comparing VA loans, review all associated costs, including funding fees, origination and appraisal fees, and any other lender charges. The same goes for civilian mortgages: the fine print really matters.
• A property that looks good on the outside may be crumbling from within. Never rush the inspection process on your home purchase. Professional home inspections are necessary and valuable. For a few hundred dollars, you can potentially save a fortune.
• If you’re looking to drop anchor long-term, then your future resale value is less important than the quality and utility value of your home. But it’s always good to consider an exit strategy.
• Understand your budget and always make accommodations for more expenses. Your mortgage is not the only expense you have to contend with. Others include property taxes, maintenance, repairs, homeowners’ association dues, and assessments.
• Get your paperwork in order. Lenders can fast-track your application when you’ve got all your documents in order. This includes bank statements, proof of assets/funds, cosigners (if required), tax returns, identity documents, etc.
• Strike while the iron is hot, lock in low mortgage rates. Don’t procrastinate when good deals come your way.

The takeaway from all of this is clear: Due diligence is essential when purchasing your first home. Shakespeare said it best – They stumble that run fast. Take your time, do your homework, and act decisively when you’re ready to pull the trigger on your first home purchase.