Living a life on active duty in the armed forces can be a rough life. Changing orders requiring frequent relocation are a way of life for some assignments, as are living in barracks or other on-base housing for extended periods of time.
But those that are able to transition from active duty back to civilian life face some challenging aspects of that transition—namely housing: where to find it and how to finance it.
Knowing of some of challenges behind transitions to civilian careers, Freddie Mac [1] has issued the results of a new survey from just under 2,000 active-duty servicemembers to understand the perceptions of active-duty military service members (and spouses) when it comes to home renting, ownerships, and financing (specifically VA [2] loans). Other tracked information collected is their branch of service, gender, income, region, and urbanicity. The survey attempts to be representative of the armed forces as a whole.
At the outset, the largest finding the survey revealed is that 87% of active-duty servicemembers are aware of the benefits of VA loans. Furthermore, 90% who are currently renting plan to utilize a VA loan to buy a home in the future.
“The ability to find affordable housing in the current market is seen as a major challenge facing those transitioning from active duty,” said Stacy Walker [3], Director, Housing & Community Outreach for Freddie Mac. “The great news is that there are outstanding housing benefits available to veterans and the majority of those who want to buy a home plan to use them.”
“To aid that effort, Freddie Mac is focused on education and outreach through a VA Home Loans guide and a CreditSmart [certified] financial education program tailored specifically for members of the military and veterans.”
In addition, Freddie Mac has partnered with non-profit Soldier On [4], which has committed itself to ending veteran homelessness, in order to better engage with veterans using financial materials and tailored outreach programs.
“The transition to civilian life can be a challenge,” said David Ramirez [5], Home and Credit Financial Education Program Manager for Soldier On. “The CreditSmart curriculum is helping us create a culture of financial readiness that provides veterans with the tools they need to be successful in their civilian life.”
Other key findings include:
- Homeownership rates among those surveyed are disproportionately high at 73%, compared with 65% for the general population (according to the U.S. Census Bureau).
- Of those surveyed, 92% are aware of VA Home Loans. 87% of active-duty respondents are aware of the benefit.
- Just 57% of current homeowners who responded to the poll are aware of the benefits of a VA Home Loan and have used it to buy a home in the past.
- Of those who currently rent, more than 8 in 10 who plan to purchase a home intend to use a VA Home Loan to do so. Nine in 10 active-duty respondents plan to use the benefit.
- Eighty percent of those who used a VA Home Loan had a favorable experience, citing the lack of a down payment and low closing costs as key features of the mortgage product.
Click here [6] to view the findings of the survey in their entirety.