Published: May 27, 2020
NewDay USA, one of the nation’s leading VA mortgage lending companies, enables thousands of veterans struggling in this COVID-19 economy to take advantage of an unprecedented opportunity to either refinance their mortgage or purchase a home with no money out of pocket and a monthly payment typically equivalent to what they are paying to rent.
“Unemployment rates have risen for veterans and their spouses as a result of this pandemic,” said Admiral Thomas Lynch, chairman of NewDay USA. “We want our nation’s veterans to understand and take advantage of their well-earned veteran benefits. They include no money down VA home loans and the opportunity to refinance their existing mortgage at the current unprecedented low interest rates.”
The Bureau of Labor Statistics reported that the unemployment rate for all veterans jumped 11.8 percent in April up from 3.8 percent last month, which is the largest recorded jump since January 1975. Veteran spouses are also struggling with employment according to the latest survey by Blue Star Families. Even before the coronavirus struck, nearly one in four (24%) veteran spouses were unemployed and of those employed, 77% were “underemployed,” which means they are making less than their education and experience level.
Lynch points to the following as the veteran homeownership trifecta:
Historic low rates: The average mortgage rate for a 30-year loan has fallen to 3.09%, making it the lowest rate recorded in 50 years.
Veteran-focused Credit Scores: Traditional credit scores don’t take into account the significant credit-worthiness factors of veterans. NewDay USA uses its proprietary credit-worthiness score, C-Score, which looks at veteran deployment history, their propensity to pay bills and their guaranteed fixed income from time in the service. “In fact, the veteran foreclosure rate is only 1.98% compared to general loans, which peaked at 2.47%. Another factor to understand is that veteran’s military training instills integrity and the adherence to obligation,” noted Admiral Lynch.
No money out of pocket: Even with no money down loans, many veterans simply can’t afford closing costs and fees. This is why mortgage lenders must do the right thing and put their profit-margins aside to make sure that the veteran doesn’t have to pay anything out of pocket. “They’ve done their service, and now it’s our turn to make this a lot easier for them,” added Admiral Lynch.
FROM:
Herald-Mail Media
NewDay USA Enables Unprecedented Home Buying and Refinancing Opportunity for Veteran Families
By: Staff Writer
May 27, 2020
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