According to Veterans United, only 12% of America’s 24 million veterans are taking advantage of VA loan benefits. Around 179,000 people currently have a VA loan, borrowing $200,867 on average. One of the main reasons that there aren’t more veterans using their financial benefits, is that they don’t know how to pursue getting a VA loan, or haven’t considered that they could be eligible. Fortunately financial services for veterans have now hit the digital age, and using apps and online technology, it is now a simple and easy process to apply for a loan or a home loan. These are safe lending options for qualified veterans and their families.
Making home ownership possible
The main reason for the VA loan program is to give financial benefits to veterans in reward for their sacrifice and service. In many cases, this makes home ownership possible. 80% of VA borrowers would not be eligible for a conventional home loan. A VA mortgage also includes VA cash out, meaning that you can borrow against the equity of your home when you really need to (for instance if you have emergency expenses that need to be paid for). Being able to apply quickly online means that a home loan can be arranged in as little as 14 days. When the housing market fluctuates rapidly, organising a VA loan swiftly will make purchasing a property easier.
Using Artificial Intelligence
One of the ways that the VA loan process is sped up, is by lenders using Artificial Intelligence (AI). AI will quickly analyse the veteran’s financial picture to make personalized suggestions on the right mortgage options. AI technology has been used within the financial sector for many years now, but still hasn’t really hit the VA loans industry. Mortgage fintechs are now using AI tech, applying digital mortgage principles to applications, helping active and retired military personnel to obtain financial products and loans with manageable and competitive interest rates.
Using eNotes to record financial data has also been an essential tool in speeding up the application process for VA loans. eNotes can be used to give a clear financial picture for each customer, and it can also be used to store a certificate of eligibility which can be used in the future. There is no minimum credit score needed when you apply for a VA loan, so as long as you have previously performed well with your mortgage history, then the odds are greater of being entitled to a VA home loan or remortgage deal. Lenders having an eNote record of this relevant information has helped to drastically speed up the process for borrowers.
According to the Veterans Association, 33% of veterans don’t know that they could get a substantial financial benefit when applying for loans and mortgages. The industry embracing the digital age, means that the application process has become far more streamlined and veterans can obtain a much-needed loan quickly and easily.