For veterans transitioning from military service to civilian life, financial stability is a crucial part of the journey — and securing a home can be key step in building that foundation.
Credit unions across the country support veterans and active-duty service members through specialized VA loan products that cater to their distinct needs. With lower interest rates, flexible terms, and fewer financial barriers, these VA lending options empower these members to achieve homeownership and strengthen their financial future.
“The VA loan program enables veterans to realize the American dream,” says Chris Davis, assistant vice president of home lending at Navy Federal Credit Union ($178.0B, Vienna, VA), where 44.92% of all mortgages are VA loans. “It’s our specialty. It’s very central to our mission.”
Navy Federal was the fourth-largest VA loan lender in the United States in 2023, according to the Department of Veterans Affairs. The credit union has more than 300 branches around the world and serves more than 13 million members.
But smaller, non-military chartered credit unions also have notable portfolios. That includes Pine Bluff Cotton Belt Federal Credit Union ($71.7M, Pine Bluff, AR) and Town & Country Credit Union ($695.9M, Minot, ND), where 17.15% and 15.10% of all mortgages are VA loans, respectively.
“If we recognize their commitment, how do we tell them thank you?” says Brian Castle, vice president of mortgage lending at PBCB FCU. “How do we honor them for the sacrifice and commitment they made?”
PBCB FCU started focusing on veterans when it realized they comprised a significant percentage of its primary SEG at the time — employees of the Union Pacific Railroad. The credit union initially relied on correspondent investors but later took steps to become an approved VA lender.
In North Dakota, there’s no question veterans and active duty servicemembers make up a large portion of Town & Country Credit Union’s market, which includes not only Minot Air Force Base but also an Air National Guard base in Fargo.
“They are some of our favorite borrowers,” says Renata Buen, Town & Country’s SVP of Mortgages. “We see it as a privilege to serve those that serve our country, and we’re grateful that they put their trust in us.”
Trusted Experts
Although most members are aware of VA loans, all three credit unions say education and awareness is the biggest challenge they face.
“Some veterans don’t realize it’s an option for them,” Buen says. “We work to get to know them and ask purposeful questions to understand their goals. Everybody has a unique situation.”
At PBCB FCU, Castle says his team was shocked to discover the number of Korean War and Vietnam veterans who had never taken advantage of their eligibility before.
“We’re not talking about large dollar purchases,” Castle says. “We’re talking about purchases less than $100,000 saved for a two-bedroom or small 900 to 1100-square foot home. They just wanted to retire comfortably.”
That knowledge gap doesn’t just refer to veteran members; credit union staffers also must be well-versed in the VA loan process.
PBCB FCU invested in specialized training to quality as a Lender Appraisal Processing Program (LAPP) lender, which speeds up the loan closing process. Castle himself is a staff appraisal reviewer (SAR) and an approved VA underwriter.
“We continue to educate ourselves on what’s available,” he says. “For example, one of the big things we’ve been able to get into lately is working with veterans to get into special adaptive housing, especially for amputees.”
This is a significant initiative given that more than a quarter of veterans in the United States report having a disability.
Similarly, Town & Country currently employs three VA underwriters, all of whom are SAR certified. Buen says it can be difficult to overcome the perception that VA loans are difficult or too much work.
“That’s not only on the borrower’s side but also the realtors,” she says. “They sometimes think it’s not worth doing. This creates the opportunity for us to become the local expert.”
To address the misperception, Town & Country provides training to local realty offices about VA loans and how to best assist veterans seeking homeownership.
“They’re surprised how easy and efficient the process is,” Buen says. “The program is incredible — it is by far the best out there. I’ve compared others to it a hundred times, and it always comes out being the best offering there is.”
On a national scale, Navy FCU has a program called Realty Plus that connects members to experienced real estate agents who are more likely to understand a veteran’s situation.
According to Davis, veteran members are hungry for information.
“What we’ve uncovered for our mortgage loans and for first-time homebuyers is they need not only financial literacy but also comfort and understanding,” he says.
A research brief by the Consumer Financial Protection Bureau found that veterans tend to have better financial wellbeing than nonveterans. That same data suggests these higher results are strongly associated with education and age — with those in their 50s and 60s faring better than those in their 20s — followed by physical health and homeownership. Thus, credit unions can play an important role in setting veterans up for long-term success.
Adapting Services To Ensure Accessibility
Credit union leaders often say successful institutions meet their members where they are — this can be especially challenging when serving veterans.
“We have to be flexible with them because a lot of them are probably overseas when they’re coming here,” Buen says. “A lot of them purchase homes before they even set foot in this town.”
According to Buen, it’s important for the Town & Country team to be flexible with hours and means of communication — be it via video, online, or phone. It’s also important for the credit union to be ready to serve as a source of information for life outside of traditional financial services because members ask about schools, hair salons, and more. The SVP says the majority of the veterans the credit union helps with VA loans are those who are freshly retiring and often looking to settle down with a young family.
Navy Federal also deploys a variety of options to serve its members, whether in person, on the phone, or online.
“We’re fortunate to have substantial resources and abilities that allow us to deliver solutions to our members through many different ways,” Davis says.
Navy’s call center handles an average of two million calls per month. In addition to hosting live education classes, it also makes financial literacy videos and planning tools available through its website, including a payment calculator that allows would-be borrowers to determine payment ranges and potential down payments.
A Worthwhile Niche
For similar institutions with veteran members, Buen and Castle say investing in those relationships is invaluable.
“The military community is really a small, close-knit community,” Buen says. “They value and trust the people they work with. If you’ve proven yourself to them, they will talk you up, and they will push to use you no matter the scenario or their location.”
For credit unions, at the end of the day, it’s about serving those who have served.
“It’s a commitment, but they’ve already paid that price to afford us this opportunity,” Castle says. “What’s stopping us from doing what we can for them?”
This story has been updated to reflect minor data corrections.
What Can You Learn From Like-Minded Leaders? Credit unions are responding to the evolving needs of members with a variety of products and services, including VA and other niche loans. What’s more, they are using expertise from one another to do so. Callahan Roundtables put leaders in the same room to share solutions, solicit feedback, pose questions, and more. Inspiration is a Roundtable away. Learn more today.