Nearly two-thirds of active-duty servicemembers transitioning to civilian life expect their search for affordable housing to be “extremely” or “somewhat challenging,” according to a survey conducted by Freddie Mac. Other top concerns for transitioning servicemembers are adjusting to a different pace of life and work, and finding a job with similar or greater pay than in the military.
According to the survey, 51% of respondents feel they could have used more information when they were going through the mortgage process. Approximately 87% of active-duty respondents are aware of the benefits of VA Home Loans and 90% of respondents currently renting plan to use a VA Home Loan to buy a home at some point.
“The ability to find affordable housing in the current market is seen as a major challenge facing those transitioning from active duty,” says Stacy Walker, director of housing and 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.”
The homeownership rates among those surveyed (73%) was higher than the 65% homeownership rate for the general population. However, only 57% of current homeowner respondents are aware of the benefits of a VA Home Loan and have used it to buy a home in the past. Eighty percent of respondents 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 product.
Walker says Freddie Mac’s VA Home Loan guide and CreditSmart financial education program are tailored specifically for members of the military and veterans to improve overall education. Freddie Mac has also engaged with veteran resource organizations, including Soldier On, to ensure its financial readiness materials reach veterans.
“The transition to civilian life can be a challenge,” says David Ramirez, 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.”
Freddie Mac generated responses from an online poll of 1,979 active-duty military, veterans, and spouses who qualify for VA Home Loans. Respondents included representatives from a mix of military branches aged 18 to 65.
