A Path To Affordable Homeownership For Military Members

Members of the U.S. military and their families occupy a special place in the heart of Jennifer Kouchis, senior vice president of real estate lending for VyStar Credit Union ($13.4 billion; Jacksonville, FL). The credit union — which was founded in 1952 at Naval Air Station Jacksonville — embraces a commitment to serve those who protect the country through service in the military.

“We feel we should be serving our military because they have served us and guarded our country so selflessly,” Kouchis says. “They deserve all the benefits they’ve earned through their service.”

Helping active military members and veterans find affordable housing and mortgage financing options is one of the benefits VyStar strives to provide. To support those efforts, VyStar has cultivated partnerships with like-minded organizations and local non-profits.

“I believe there is strength in numbers, so we look for partners whose mission aligns with ours,” Kouchis says.

Two of the most valuable partnerships involve the USO and Habitat for Humanity.

The USO Pathfinder Transition Program steps military members through the services and resources tailored for them and their spouses. Transition specialists provide virtually and in-person one-on-one support to help military families plan for current and future success.

Habitat for Humanity has a nationwide network of affiliates, which includes HabiJax in Jacksonville. VyStar provides low-cost mortgage loans to finance the homes HabiJax builds. Placing a military family in a HabiJax home is a big step for that family to build generational wealth.

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Kouchis has attended groundbreaking ceremonies for a new home build as well as the subsequent presentation of the keys to the new home at project completion.

“There’s nothing like the emotion that new owners experience with getting the keys to a new home,” she says. “It’s such a powerfully emotional moment. It’s the reason we do what we do.”

In addition to building community partnerships, the credit union concurrently has developed its own military-centric lending and assistance programs.

VyStar officially launched its Military Heroes Mortgage Program in late 2021. The credit union has always strived to provide affordable mortgage programs for military members, but this program represented a new level of assistance and options. The program also set the theme of subsequent and similarly branded programs, which all featured the key word “Heroes.”

According to Kouchis, affordable, accessible financing options is one of the major hurdles to homeownership for the area’s military members. In Duval County, where VyStar is headquartered, rent increases have risen by over 30% in the past year. And although people might receive a cost-of-living boost to their salary, those income raises do little to mitigate rising property costs and inflation on other daily essentials like groceries and fuel.

VyStar conducted a survey with its military members, families and affiliates to identify the highest priority challenges they face when transitioning to ownership. The responses indicated the No. 1 challenge is financing. The deeper survey responses informed VyStar of the need for mortgage lending products that were complementary to VA loans.

Kouchis estimates VyStar has funded $90 million through its military mortgage program. Seventy percent of those were VA loans; the other 30% the credit union funded through Hero loans.

“We want to make sure if a member is experiencing challenges with the VA loan process, we can be there for them with another set of options,” Kouchis says. “We present each buyer their options, explain the pros and cons, and let them decide how to proceed. In more than a few alternatives, there is a better, more affordable alternative loan option. And in some cases, buyers might need faster loan processing.”

Brian Wolfburg, president and CEO at VyStar, underscores the importance of the support the credit union offers its military members.

“One of the most powerful ways we honor our heritage is by helping military members, veterans, and their families achieve the dream of homeownership,” he says.

In addition to the putting the right programming in place, VyStar has put the right personnel in place. The credit union’s dedicated mortgage support team adds another level of support for military homebuyers. The team comprises certified military housing specialists — including loan originators, underwriters and processors — who provide guidance around VyStar’s processes and partners. Every military buyer is assigned a support team to help the buyer through every step of their home loan journey.

The credit union provides a roadmap to military home buyers that highlights the milestones of the home-buying journey. Military home buyers also receive a dedicated direct dial support phone number — a hotline — to reach the mortgage team.

“When someone calls that line, we get a special notification,” Kouchis says. “Every one of our military members is greeted with the team member thanking them for their service.”

Kouchis and her team continually focus on improving and expanding access to the credit union’s military programs.

“We have a saying at VyStar, ‘Do Good.  Bank Better,’” the SVP says.

For the near future, that means expanding the credit union’s real estate lending footprint to states beyond Florida and Georgia. VyStar has a team in place that’s up for the challenge.

“We continually develop high-quality, affordable programs that are run by a team of employees committed to supporting these brave men and women,” Wolfburg says. “Our commitment holds true for individuals and families across the communities we serve. We believe everyone deserves a home to call their own, and we continue to work to make the homebuying process more accessible for all.”

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