Becoming familiar with housing programs to assist veterans can make you a valuable and trusted partner.
By Daniel Rome Levine
When it’s time to help veterans buy or sell a home, REALTORS® owe it to them to be as knowledgeable as possible about the wide range of specialized programs, loans and assistance available to these 22 million brave Americans.
Shirley Matlock, CRS, has been helping veterans buy and sell homes in Columbia, Maryland, for over 15 years. And to this day she is still surprised by how many of them don’t fully understand the wide range of home financing benefits available to them.
“Many veterans have no idea about the details involved with a Veterans Administration (VA) loan and will rely on their REALTOR® or lender to tell them,” says Matlock, an associate with RE/MAX Advantage Realty.
In her initial meeting with a veteran, Matlock reviews a detailed rundown of the benefits to which they are entitled. For instance, she explains that a VA loan doesn’t require a down payment to purchase a home and that if they have at least a 10 percent service-related disability, the agency will waive its VA loan funding fee, which can run as high as 3.3 percent of the loan’s value.
“I have learned and will continue to learn a lot working with so many veterans,” Matlock says.
You don’t need Matlock’s in-depth level of knowledge to make a difference for these men and women. Even a basic, working knowledge of housing and loan assistance programs available to vets on a federal level and in your state will make you a trusted and valuable partner. As several CRS agents from around the country who have experience working with veterans tell The Residential Specialist, helping these heroes find an affordable place to live is as gratifying as it gets.
Lending a Hand
Maura Neill, CRS, founder of Buy Sell Live Atlanta at RE/MAX Around Atlanta, is the lead instructor for the National Association of REALTORS® (NAR) certification class for agents who want to work with current and former military service members, the Military Relocation Professional (MRP). She is also behind the CRS webinar “Working with Military and Veteran Buyers and Sellers.”
Neill says one of the keys to success when working with vets is aligning yourself with a lender who knows VA financing inside and out. “It’s such a complex process that you really want to screen the lenders you work with to make sure you choose one who is knowledgeable and has experience with VA financing,” she says. “These lenders can really make or break a deal.”
Experienced lenders can also help smooth the way for veterans as they navigate VA regulations for obtaining a loan. For instance, they can help a veteran request a Certificate of Eligibility form showing they are eligible for a VA loan. They can also help a veteran determine whether a property they are thinking of buying meets the requirements for a VA loan according to the agency’s Minimum Property Requirements.
Helping Those Who Are Physically Disabled
When working with physically disabled veterans, Neill counsels REALTORS® to first do an in-depth interview with them to find out as much as they can about their limitations and how they go about their everyday lives. This will allow them to determine the exact features of their living space. For instance, if the veteran uses a wheelchair, they may need wider hallways and doorways and a ramp to enter the house, as well as countertops and tables that are lower or adjustable. Once you know exactly what type of house they need, you are in a position to help them start looking. Neill’s office donates a percentage of each closing to a private, non-profit organization called Homes for Our Troops that builds custom-made homes for injured vets. Another similar organization is the Stephen Siller Tunnel to Towers Foundation (see sidebar).
There are also VA grant programs, Neill says, that pay to adapt a temporary residence to suit an injured vet’s specific needs, as well as grants that do the same for a home they may own.
Setting the Record Straight
When working with buyers using VA financing, Neill says she often has to overcome misconceptions listing agents and sellers have about the program. She admits VA appraisals can be tougher than conventional ones, but points out that a higher percentage of VA loan applications get closed than Federal Housing Administration (FHA) or conventional loan applications, and VA appraisal turnaround times are also faster.
Inside Knowledge
Alison Wisnom, CRS, has an edge when working with veterans. She speaks their language. Having served in the Army, she knows and can easily use the jargon and the many colloquialisms and acronyms that are an integral part of military life. “I think I gain credibility and trust with veterans that way,” she says.
Wisnom, an agent with Hawaii Life Real Estate Brokers on the island of Oahu, says veterans there using VA financing face the unique challenge of competing in an international market where cash is king. A veteran putting zero cash down on a VA loan is going to be competing against an all-cash offer or even a buyer using a conventional loan and putting 20 percent down, she says.
Wisnom gets around this problem by relying on her in-depth knowledge of the island’s real estate market and pointing out to her veteran clients any one of about 12 “micro-markets,” as she calls them, where VA loans are more commonly seen. “Here the veteran’s competition is less likely to be cash or conventional loans,” she says, “and if they are competing against other buyers using VA loans, then they can use other strategies to assemble a stronger offer.”
Wisnom, Matlock and Neill all say they feel honored to be able to help veterans. “Working with veterans is one of my favorite parts of the job,” says Neill. “Our servicemen and women have given so much to their country and the least we in the real estate profession can do is gain the knowledge necessary to serve them as capably as possible at the time they need to buy a home.”
See these veterans and their homes in action.
