VA home loans help to increase homeownership for Black veterans
(CBS DETROIT) - Addressing the wealth gap in any community starts with building neighborhoods, and one strong anchor is homeownership.
The U.S. Department of Veteran Affairs is looking to do just that for servicemen and women through low-interest home loans.
There's a huge divide between black and white homeownership in the country.
According to Veterans United Home Loans, the disparity is greater than it's been in 60 years. But that margin becomes slimmer in the veteran population.
"When you look solely at the veteran population, that gap shrinks almost in half," said Chris Birk, V.P. of Mortgage Insight for Veterans United Home Loans.
Birk says the homeownership rate between black and white veterans in 2021 was at 17 percentage points.
While the rate between black and white civilians soared to 30 percentage points.
"It's still doing what it was created to do and that's help level the playing field and provide access to homeownership to those whose given so much to us," Birk says.
Officials from VUHL told CBS News Detroit more people of color could use VA home loans to increase the homeownership rates in their communities.
And the benefits are unmatched.
"The biggest benefit that continues to make such a difference for those who serve is the ability to buy a home without a down payment," Birk said.
Abdullah Muhammad is an Army veteran and a Detroit homeowner. He says the VA home loan saved his family thousands and helped him capitalize on equity.
"Instead of us pulling money out of our savings or borrowing money from family and friends, we didn't have to do any of that," Muhammad said. "So, we acquired our loan with no money down."
To learn more about VA home loans, click here.
