FAIRBORN, Ohio -
The Hero'sChoice Home Loan program is designed to be an alternative to traditional Veterans Affairs home loans and features lower costs, faster processing and higher loan limits. The loan is being offered to "any active duty or honorably discharged veteran of the Air Force, Army, Navy, Marines, National Guard, or Coast Guard, and non-remarried spouses of veterans who died while in service, are missing in action, or a prisoner of war."
Among the Hero'sChoice loan's features are no minimum military service requirements, streamlined processing and appraisal process for faster closings, and a lower funding fee of 1.75%.
Wright-Patt SVP Tim Mislansky said any veteran can jumpstart the process with either a military pay stub for active duty or reserve personnel or a Department of Defense form DD-214 official discharge paper.
When interviewed by the Credit Union Journal, Mislansky said 10 loans applications representing roughly $1.2-million were under consideration, with one veteran being approved for a $90,000 mortgage. With the average home cost in the area at $125,000, Wright-Patt will be able to assist veterans with a much lower program cost than other areas of the nation and has committed $10 million toward the program's launch.
Mislanksy said Wright-Patt considers Hero Home Loans in its pilot stage with management seeking to make it permanent. Mislansky said WPCU doesn't have any plans to sell the loans on the secondary market. Hero Home Loans are marketed on the CU's website and mentioned to Wright-Patterson AFB military and civilian personnel during financial education classes at its three branches on station.
CMG Mortgage Insurance Group SVP Brian Shepherd said the company had been discussing a similar program with several credit unions and Wright-Patt's long-time association with the Air Force base plus its desire to help veterans carried the day. "We were trying to see how we could help and it seemed like the right thing to do. Wright-Patt was the one who was most willing to work with us," Shepherd said. "It's a good example of collaborating with a credit union on a product we know will work for the members."
Shepherd said the Hero Home Loan program will become the "poster child" for how CMGI wants to design new products for the future.
"The VA is a good program and we're not knocking it. We've incorporated some of the good features into our product," he said. "Everyone knows how to underwrite Fannie and Freddie loans, not everyone understands the VA process."
Sharon Rush, CMG MI's director of marketing and product development, added that the Hero Home Loans feature many of the longstanding features of a traditional VA loan, but with added convenience such as a faster approval and less regulation. Rush said the loan program will allow credit unions that don't make VA loans to serve their military membership while still using their existing core processor.
"We see this as another option for veterans. The VA is a strong program and it makes a lot of sense for people," Rush said. "If they can originate a regular mortgage, this is a similar process."
