While interviewing with Matt Lauer on February 2, 2009, President Barack Obama said U.S. Troops would start to be withdrawn from Iraq within a year.  The President said that the United States can now start giving more responsibility to the Iraqis, and that a more clearly defined withdrawal plan would follow in the coming days.  Since then, a clear plan has been released and President Barack Obama has determined that our combat troops will be removed from Iraq by August 2010 and all remaining troops will come home by the end of 2010. 

 

Albeit gradual at first, the plan’s implementation is starting almost immediately.  On Sunday, March 8, 2009, the U.S. military announced that 12,000 troops would be exiting Iraq in September 2009, leaving the majority of troops to exit at a later time.  Currently, there are 135,000 U.S. troops in Iraq.  

 

With the certain homecoming surge of the U.S. Military, VA mortgages are likely to see a dramatic increase at the same time. The VA Home Loans Guaranty Program started in 1944 in order to provide returning war veterans with financing for homes — the original thought behind the Program being that when soldiers are away at war, they miss socioeconomic opportunities that can help establish enough credit to buy a home.  Today’s VA Loans accomplish the original objectives and are available to most military personnel whether they fulfill their service required for eligibility during war or peacetime.  Of course, veterans’ mortgages will help returning Iraq War veterans in terms of homeownership. 

 

Considering the current economy, some U.S. Troops may be in for a shock upon their return from war.  Many were deployed during the real estate boom.  Since 2003 when the war in Iraq began, the U.S. economy has taken a dive, and mortgage interest rates dropped to historic lows at last quarter of 2008 and first quarter of 2009. Troops may be coming home to the best time in decades to use their VA Loan entitlements. 

 

Existing homeowners may decide now is an opportune time to refinance with a VA Loan. Others may want to purchase a home, using the VA Home Loan Program.  Either way, zero down, 100% refinancing, no private mortgage insurance and no prepayment penalties, make the VA mortgage program one of the most flexible our there. Those with military affiliation who are interested home refinance or purchase should explore the advantages of the VA Loan Program.

 

As unbelievable as it may seem, there are returning troops that may not know about the VA Home Loan Program.  A recent VA report on military home loans revealed that of the nearly 24 million U.S. military affiliated, less than 10% had used their VA loan entitlements.  Of the U.S. veterans asked, 20% had no idea that they even had VA Loan entitlements.

 

Historically, every major U.S. war and conflict has resulted in an increased number of veterans who qualify for VA Loan entitlements.  The Iraq War should have similar results.  Troops returning from the war in Iraq should contact a VA Mortgage Specialist to find out about their VA Loan entitlements and to refinance or purchase a home.