Washington, D.C. (March 3, 2025) |
The Defense Credit Union Council (DCUC) sent a letter to the House Financial Services Committee (HFSC) ahead of the Subcommittee on Housing and Insurance's upcoming hearing. In the letter, DCUC called attention to critical issues related to housing affordability and access for those who serve or have served our country.
DCUC stressed how housing stability is a cornerstone of financial readiness for military personnel and veterans, and defense credit unions are dedicated to ensuring the financial stability of these communities. Yet, unique challenges in the housing market continue to hinder these members’ ability to achieve secure housing, impacting not only their financial well-being but also military mission readiness, recruitment, and retention.
Jason Stverak, DCUC Chief Advocacy Officer, explained how rising rents near military bases, particularly for junior enlisted personnel, have outpaced the Basic Allowance for Housing (BAH), leading to financial strain and housing insecurity, and frequent relocations such as Permanent Change of Station (PCS) orders also make homeownership difficult for military families.
Stverak outlined additional barriers presented when utilizing the VA Home Loan Program, including misconceptions about VA loans, which cause sellers and real estate agents to reject offers from veterans; appraisal delays and discrepancies; VA appraisals often take longer and undervalue properties in competitive markets, making it harder for veterans to purchase homes; funding fee costs; housing affordability and homelessness among veterans due to rising home prices and interest rates, even despite available federal assistance programs.
DCUC’s letter also noted how defense credit unions play a key role in providing mortgage lending to military families but face regulatory hurdles that limit their ability to offer competitive mortgage products.
DCUC’s proposed solutions to these issues included increasing and modernizing Basic Allowance for Housing (BAH), improving the VA Home Loan Program, expanding efforts to educate realtors, sellers, and lenders about the benefits of VA loans, streamlining VA appraisalprocesses, reducing burdensome funding fees for first-time veteran buyers, and broadening affordable housing solutions for veterans through strengthened partnerships with government agencies, nonprofit organizations, and financial institutions—including defense credit unions.
Stverak also called for support in allowing greater mortgage lending flexibility for defense credit unions.
DCUC is committed to collaborating with Congress to address these critical housing challenges and supporting defense credit unions’ abilities to empower these communities through homeownership.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.