WASHINGTON, D.C. – U.S. Representative Peter Meijer (R-MI) recently joined more than 60 of his House colleagues, led by Representatives Guy Reschenthaler (R-PA) and Derek Kilmer (D-WA), in sending a bipartisan letter to Department of Veterans Affairs (VA) Secretary Denis McDonough urging the VA to improve its mortgage loan process to ensure veterans can effectively compete in the current housing market.
Excerpt from the letter:
“As you may know, buyers are facing an incredibly competitive housing market and have been for some time. According to the National Association of REALTORS, February 2022 saw a median sales price of $357,300 and 1.7 months of inventory. The median sales price is up 15 percent year-over-year, and inventory was down 0.3 months from February 2021. This marks 120 consecutive months of year-over-year increases, the longest-running streak on record. Sellers have benefited the most from this intense housing market, typically earning their full asking price.
“Historically, VA mortgage loans were appealing and competitive to sellers. Unfortunately, the current housing market and the rise in cash and conventional loans with waived contingencies can leave veterans unable to compete with other buyers. VA borrowers are less successful than borrowers using conventional loan products, with 11 percent of VA borrowers changing loan products during their housing search, compared to only one percent of conventional borrowers who change financing methods. This is particularly concerning given the alarming levels of veteran homelessness in our nation. In 2021, 19,750 veterans experienced homelessness.
“Our nation’s veterans have provided an invaluable service to protect our freedoms and American way of life. It is only fitting we ensure they receive the benefits they deserve. We call on your department to improve the VA mortgage loan process and ask for a report on the steps the VA is taking to increase loan competitiveness. It is imperative veterans receive a competitive loan that provides them the opportunity to purchase a home.”
Original source can be found here.
