Military active personnel and veterans have different housing needs and a growing number of real estate and mortgage companies are setting up specific platforms to help meet those requirements.
For example, Re/Max, which was founded by a military veteran, Dave Liniger, has launched its Veterans First Program. VA Loan Captain, founded by Grant Moon, who is also a veteran and currently a captain in the Army Reserve, manages the lenders that are participating in the platform.
VA Loan Captain also manages the technological infrastructure related to the platform as well.
The program was soft launched on Veterans Day. Over 2,000 Re/Max agents are participating in Veterans First.
VA Loan Captain is not a mortgage banker or broker. Moon said Re/Max manages the real estate sales side, while his firm concentrates on doing the same for the finance side.
VA Loan Captain was created in 2011 after Moon saw various predatory lending practices being exposed in the news, especially in regards to military veterans being charged illegal fees and being unlawfully foreclosed upon.
He said he believed there was an opportunity to find banks which do a good job and have the right ethical approaches. VA Loan Captain has a pledge that these lenders must sign to provide ethical service to
Moon noted that rebates are given to the eligible military or veteran homebuyer or seller.
While conforming and other loan products are eligible for the Veterans First Program, Moon noted that if a borrower is eligible for a Veterans Administration guaranteed loan, typically they try and take advantage of that program.
VA Loan Capital has created a secure portal that enables the participating Re/Max offices to send its referrals in a secure environment over to the participating lenders.
Participating lenders are required to undergo a background check. Moon added that participants have to sign an agreement stating they will work within the program’s policies and that they have to have acceptable customer service scores. He said that is part of what VA Captain provides in managing the lenders.
Right now, there are negotiations to add national lenders to the program, but right now there are just local lenders participating.
“Each one of the lenders at this point that are coming on to the program was recommended by the specific Re/Max firms,” he said. “The best types of (participants) are ones that are actually referred by (the) Re/Max (offices).”
There are a “slew of people” with a military background participating in this program and it is “near and dear” to their hearts, Moon noted.
Those on active duty in the military can find themselves at a new duty station on a moment’s notice. This is just one of the issues these families have that are different than the typical American family when it comes to moving, buying and/or selling a home.
On the other hand, those who are now veterans have more traditional real estate needs, but this group is eligible for the VA loan program. However, there are many originators who specialize in it.
Right now, the Veterans First program is restricted to Realtors and lenders although there is a possibility of ancillary services providers being added in the future.
Moon told his own story of when he returned from serving in Iraq in 2008 and was looking to buy his first home. He didn’t know which Realtor to work with or which lender. Furthermore, he didn’t know about the other needs which go into purchasing a home such as title insurance and homeowners insurance.
One of Moon’s goals is to hire more military veterans in the mortgage and related fields. The VA product is aimed specifically at those who are or have served in the military, yet there is a dearth of veterans who are in the business. “For me that is something that my company has continued to strive to correct,” especially given the high rate of unemployment among veterans, Moon said.
