According to a recent survey, active-duty service members have a higher inclination towards buying home at a younger age than civilians. In addition, the survey also reveals that younger active duty members are more likely to buy larger and more expensive houses even though they have a lower median income.
It should be noted here that active-duty members have more job stability and the option of no down payment on home financing, giving them an advantage over civilians to easily buy home, according to Lawrence Yun, the Chief Economist for the National Association of Realtors, the organization that conducted the survey.
“Furthermore, their tendencies to marry and raise a family at an earlier age and carry less student debt make buying a home a more desirable and achievable option,” he added.
Moreover, 74 percent of active personnel who participated in the survey and 54 percent of veterans have already used their home loan benefit provided by the Veterans Affairs Department.
It should be noted here that most VA loans are provided through mortgage companies, private lenders and banks. The entire purpose is for the VA to guarantee a part of the loan so that the lender is in a secure position to lend the money. Similarly, the borrowers get reduced interest rates helping them in buying properties without the worry of paying higher interest rates. Sometimes, lenders don’t even require down-payments, as is the case with civilian loans.
Out of the people who responded in the survey, 3 percent were active duty members, a total number of less than 200. The survey was of the general populace of home buyers in a certain geographical location. It should be noted here that less than one percent of the total population is currently serving in the military.
A random sampling of 84,971 people who bought homes previous year was done. These participants were then mailed the survey back in July 2015. Around 6,406 people responded to the survey from the primary residence buyers, 3 percent were active duty members and 18 percent were veterans. According to Adam DeSanctis, National Associations of Realtors spokesman, the exact number of military and veteran responses are restricted to be given out. However, fewer than 200 responded from active-duty and 1,500 from veterans.
According to Yun, NAR’s Chief Economist, “Anytime one gets a small sample, outcomes have to be read with a little more care. But even at 3 percent, it still provides information.”
Working on the profile of home buyers is the annual project for the association. This year, it was the very first time people were asked questions about whether buyers and sellers were veterans or active duty members. He added that the NAR will now look over trends over time and will start including these questions on regular basis.
The results of the survey determine the financial strength of the military populations, as it is being put by John Bell, assistant director for loan policy for the VA’s Loan Guaranty Program.