A New Day for Hopeful Veteran Homebuyers

Happy Veterans’ Day!

And a happy day it is indeed – yesterday, the Senate approved part of the American Jobs Act that will greatly benefit our veterans.

The bill, which was approved with an overwhelming majority, would offer up to $9,600 in tax credits to companies who hire unemployed or disabled military veterans. The jobless rate for veterans remains in double digits, clocking in at a few percentage points higher than the national unemployment rate of 9%.

On Monday, we looked at issues facing returning veterans in regard to real estate. The Department of Veterans Affairs offers benefits to those who have served this country, including the VA Loan. Like all home loans, the VA Loan is becoming increasingly difficult to qualify for since banks require a “steady income”.

And this is why the passage of the Returning Heroes and Wounded Warriors tax credits could greatly improve the odds for a veteran to become an eventual homeowner. As companies hire more veterans, more veterans will qualify for the loan and be able to buy a home.

And the cost of the credit? It would be covered by extending a VA loan fee on mortgages, which was slated to end soon. One could argue (and some have) that there is some irony here – veterans paying for the very bill that helps them find work – but the hope is that the fee will be manageable if America steps up to provide more jobs for its returning soldiers.

We have yet to see how the bill will affect the unemployment rates and homeownership among the veteran community, but we applaud Senate for its bipartisan unity in committing to providing more for those who have bravely served this country.

And to any of you vets reading this, a hearty thank you from us at ZipRealty!