How to get more mortgage pros tackling VA loans
Veterans Affairs (VA) loans are one of, if not the most important, products offered by mortgage professionals.
Backed by the US Department of Veterans Affairs, they help veterans, active-duty service members, and some surviving spouses to buy or refinance a home. With little to no down payment, no private mortgage insurance, and competitive rates, VA loans can be a life-changer for those who have served our country.
Yet there are some loan originators out there who either steer clear of VA loans or don’t feel like they understand them well enough to offer them.
There are organizations like Vetted VA that have been working hard to raise educational standards among mortgage brokers to increase access to VA loans. Brokers who do these loans also do their part to educate their fellow originators, including one loan officer who wants to see misconceptions about the loans cleared up.
Nguyen Mai (pictured top), a loan officer with Edge Home Finance, said one of the biggest deterrents for brokers with VA loans is the misconceptions that float around the broker community.
“It's been said to be a more challenging loan program, harder to be approved, takes longer to close,” Mai told Mortgage Professional America. “They're all wrong. We just need to be louder in hosting classes, webinars, and social media. All parties involved should have a basic understanding of the benefit, including veterans themselves, realtors, and loan officers.”
Veterans turned away
One of the most frustrating things VA loan officers talk about is how veterans tell them about being turned away by other lenders and originators. Other veterans are convinced by those who don’t understand the VA loan program that they would be better off using a conventional loan, which can often cost them more money.
It’s not just on the loan side that veteran buyers are deterred. It often starts with real estate agents who don’t understand how VA loans work.
“The biggest challenge is that there are still so many real estate agents who turn away VA buyers because of those misconceptions,” Mai said. “Our veterans are underserved. Also, many lenders give it a bad name by screwing things up for such a simple loan scenario.”
Mai notes that while others are dropping the ball with veterans, for originators who understand VA loans, there is an opportunity to step in and fill the void created by those who aren’t educated.
“That's also the opportunity for mortgage brokers like me who are determined to change that across the board,” she said. “That's how we stand out. And that's the least we can do and the most realistic way to say thanks to our veterans for their service.”
She said that for brokers who really want to do better with VA loans, it all starts with the handbook.
“Know the VA Handbook 26-7, but use common sense to understand it,” Mai said. “It could be interpreted differently between lenders and underwriters. No one case fits all. Also, don't rush to say no. Listen, ask questions, and keep asking questions until you find the best answer possible.”
Become a VA loan expert
Mai said that she became one of the top VA loan officers by going straight to veterans, and not relying on referral partners to send her clients.
“The main reason I became a top 1% LO so quickly is that I created my own community of VA loan borrowers,” she said. “I go straight to the source, and not through realtors. I see a lot of LOs doing training for realtors, helping them understand the VA loan better. There’s nothing wrong with that. I do it sometimes, too.”
She knows that if she is going to go directly to veterans, she is going to need to be the foremost expert on VA loans, so she can answer any potential question they have. For someone who immigrated to the United States, it’s a way to give back to her adopted home.
“I focus more on making myself the go-to source of all you need to know about VA loans,” Mai said. “I provide value to the end users. Their community needs help more than we know. And referrals fly fast and far within their circle. Also, there is always a lender out there that is willing to do VA loans. So, I would not stop seeking better answers to get loans approved.
“Not many people expect that an immigrant speaking English as a second language would be specialized in the VA loan area. But I did it. Helping veterans build the American dream and making it a reality is what I love about my job.”
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