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As a military veteran and real estate professional who works closely with veterans, I’ve seen firsthand the unique challenges they face when navigating the housing market. These challenges, unfortunately, are often rooted in misconceptions and outdated stigmas around VA home loans.
Recently, I experienced one such example of this bias. I reached out to a listing agent on behalf of a veteran client who was interested in a property. The listing didn’t specify whether the seller would entertain offers using VA financing, so I sent an email asking the listing agent.
The voicemail reply I received was disappointing and, frankly, offensive. The agent implied that if my client was using VA financing, they might be financially unstable or need assistance to afford the home. She asked if we realized the price of the $350,000 home, and said she “may need to view a preapproval” before my client previewed the home.
She also assumed the veteran was male — despite the fact that my client was, in fact, a highly educated female veteran currently pursuing her master’s degree in civil engineering, with plenty of savings to cover her own closing costs and make strong offers in this competitive housing market.
Misconceptions about veterans and VA loans
This agent’s assumptions highlight a much larger problem: the widespread misconceptions about veterans and the benefits they’ve earned through service. Veterans come from all walks of life, with diverse experiences, levels of education and financial situations.
Yes, some may face hardships or even homelessness, but others are financially secure, often with multiple streams of income. To assume that using a VA loan indicates financial instability is not only false but also discriminatory.
The VA loan is a hard-earned benefit for veterans, offering advantages like no down payment and competitive interest rates. It’s designed to help those who’ve served our country achieve homeownership, regardless of their financial situation.
However, the use of a VA loan doesn’t mean the buyer is in need of charity or can’t afford a home — it simply means they’re utilizing a benefit they’ve earned through their service.
Why VA loans are misunderstood
There seems to be a lack of education in the real estate industry about what VA loans really entail. One of the key features of VA financing is that the home must meet specific safety and habitability standards due to it being backed by the government. This requirement ensures veterans are purchasing homes that are safe and suitable for living. It has nothing to do with the buyer’s financial status.
Some sellers and agents mistakenly believe that VA loans are complicated or take longer to close than conventional loans. However, with the right preparation and understanding, VA loans can move as smoothly as any other type of financing. What’s truly needed is more education and a willingness to understand VA loans’ unique advantages and requirements.
Empowering veterans to make informed decisions
While the VA loan is an incredible tool, it may not always be the best option for every veteran. It’s crucial that veterans, in collaboration with their real estate agent, lender and possibly a financial advisor, make informed decisions based on their specific needs and goals.
For example, some veterans might opt to use a conventional loan if it better suits the type of property they want to buy or if they’d prefer to use their savings for something else — such as a child’s education or starting a business.
The key point is that veterans should have the freedom to make these decisions without being judged for choosing to use a benefit they earned through years of service.
A call to action for the real estate industry
My experience with this agent’s voicemail is a reminder that we, as real estate professionals, have a responsibility to serve our veteran clients better. This starts with educating ourselves on the benefits of VA loans and challenging the outdated stigmas surrounding them.
We must respect the choices veterans make in their homebuying journey and ensure that we’re providing them with the support and resources they need to succeed.
At the end of the day, it’s about honoring the service and sacrifices of our veterans. By working to remove barriers and misconceptions, we can pave the way for more veterans to achieve their dream of homeownership — something they truly deserve.
Cheryl Arroyo is a team leader, associate broker and veteran. She works for Iron Valley Real Estate of Berks. Connect with her on Instagram or Linkedin
