Overview of Veteran Homeownership in the United States

Military guy holding their new house keys

Over a million Americans are in the military as active personnel. About 170,000 of them render their service across more than 100 countries and territories. All of them, at some point, will have to retire or leave their work.

The question is: Where do they live? An even bigger issue is: Can they afford to purchase or mortgage a home?

The Places Where the Military Veterans Live

With hundreds of veteran offices around the country, they can choose to live everywhere. Trulia data, though, suggests they tend to have a preference.

Only 6.4% prefer to live in densely populated cities. These are the likes of New York, Los Angeles and Miami. About 9.1% choose the big-city suburbs but with fewer city population. Most of them select small towns, rural areas or little metros.

A part of the reason is their decision to live much closer to the base. It explains why the top 10 states with the highest number of military veterans by Apartment Guide all have big stations. These include North Carolina, which has Fort Bragg in Fayetteville.

How Many Live in North Carolina?

The number of veterans in North Carolina is higher than the national average. According to the U.S. Department of Veterans Affairs, nearly 20 million are vets in the country. They represent about 6.6% of the total population. In North Carolina, though, they make up 9.31% or more than 730,000.

There are also more young vets here than in other states. Two of the biggest age demographics are 35 to 54 years old and 65 to 74 years old.

Veteran Homeownership in North Carolina

Couple signing contract

An overwhelming 80% of these vets in the country are more likely to own a home. They even have a much higher percentage of homeownership than civilian non-veterans. A significant reason is a mortgage designed for them.

VA home loans in Raleigh, such as those from https://www.primeres.com/raleigh, allow several entitlements to the veterans. These include the following:

  • No down payment in a lot of cases (the smaller the loan, the more likely they don’t need to secure it)
  • No private mortgage insurance (PMI), which civilian non-veterans need if their down payment is below 20%
  • Lower credit score

Veterans with a disability may obtain a home loan without a down payment and funding fee. They may also apply for one and receive 100% financing.

In case of a default, the VA Department will then cover the remaining loan on behalf of the homeowner.

These entitlements work for first-time homebuyers. In North Carolina, though, those who want to own another home or refinance a property can still take advantage of specific benefits.

One, they don’t need to spend out-of-pocket expenses since they have the option to skip two of their mortgage payments. The state also doesn’t require an appraisal, which can potentially increase the value of the refinance loan. Lastly, it doesn’t qualify applicants according to income.

Despite these advantages, some veterans still struggle to secure a loan for a variety of reasons. Two of them may be the lack of knowledge and red tape. Both the VA Department and the lenders, therefore, need to exert more effort to educate them about their mortgage options and make it easier for them to secure one.