A cornerstone of the American Dream is homeownership, symbolizing stability and financial achievement. However, homeownership’s increasing costs pose affordability challenges for homeowners nationwide, including Veterans seeking a VA-guaranteed home loan.
Anecdotal evidence suggests the rising cost of homeowners insurance and property is making homeownership less affordable. VA is committed to doing everything possible to keep military families fully informed about the associated costs of owning a home and helping your family obtain, and stay, in your home.
What are the reasons for the rising costs?
As more frequent and intense natural disasters occur, insurance companies have responded with sharply increasing the cost of insurance in many areas or eliminating the availability altogether to reduce perceived risks. On average, insurance premiums have gone up an estimated 61% over the past five years. As losses related to natural disasters continue to increase, so does the costs of home construction, as builders add design improvements to withstand the effects of extreme weather. It’s not just single-family homes that are impacted; condominium fees are also increasing to cover the rising costs of homeowners insurance. To make matters worse, high insurance costs can reduce the amount of the home loan you can borrow.
Due to increased home values, property taxes have increased in many areas, too. Since 2019, home prices nationwide have risen by more than 50%, while homeowners’ property taxes are up by an average of 27%. Property taxes and homeowners insurance are what make up your homebuyer’s escrow, which the mortgage servicer is required to pay on your behalf each month as part of the monthly mortgage payment. Every year, the servicer will reevaluate your escrow payment, and as home prices continue to gain value, property taxes go up, likely resulting in an overall higher monthly mortgage payment.
What resources are available to you?
Fortunately, there are options for Veterans to preserve the peace of mind, security and legacy that come with owning a home.
- Shop around for homeowners insurance: There are several companies that offer exclusive rates, discounts and other unique benefits for the Veteran community. Explore your options to determine what is available and what best meets your needs. Also, many insurance companies offer a discount if you bundle multiple insurance products together, like car insurance, life insurance and homeowners insurance. This can lead to considerable cost savings.
- State-level insurance relief options: In some states that often experience disasters, homeowners can receive lower insurance premiums if they make their homes better protected from disasters. Check the state you live in to see what is available to you.
- State Insurance Pools: Some states have designated high-risk areas where private insurers are not allowed to operate. These “pools” offer insurance coverage at more affordable rates. Check the state you live in to see what is available to you.
- State-level property tax exemptions: Many states offer property tax exemptions or reductions for disabled Veterans and their surviving spouses. Check the state you live in to see what is available, and if you meet the eligibility requirements.
- Local tax relief programs: Check with your local tax assessor’s office for programs like tax freezes or deferrals. Tax freeze programs allow qualifying homeowners to keep their tax rates at a certain level, even if property tax rates increase. Tax deferral programs enable eligible homeowners to postpone payment of their property taxes until a designated later date.
Need help or more information?
VA is dedicated to keeping you fully informed about the costs of homeownership, and helping your family obtain and stay in your home. By using these resources, you can tackle the challenge of homeownership. Exploring these options can ease financial burdens and build a stronger foundation to preserve what matters most. If you need additional support, you can always contact VA directly by calling 877-827-3702 or visiting the VA home loans webpage at va.gov/homeloans. Whether it’s buying a home or maintaining your home, VA is committed to helping Veterans purchase or keep their homes.
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I have gotten 2 quotes for homeowner & auto insurance. Insurance co will say they don’t have any discounts for veterans. I would like to know where in Oklahoma that a insurance co will write policy cheaper for veterans.
Great information.Thank you!
Worthless article. Vague at best. Typical VA saying they help but provide no real help at all.
Very good article Army brother ??. Is muchoimportante for veterans to understand how taxes and insurance go up so much, and here they explain clear. Thanks to VA for put this information, many times we don’t know until is too late and the monthly payment go higher ?.
I like very much they put options, like shopping for better insurance or tax relief programs, that help a lot. Also good they remind benefits for disabled veterans, that don’t get said enough in other places.
Only one thing I don’t like — sometimes when you call VA phone number they no answer fast, or you wait hours on the line. That make very hard when you need help with the house.
Question: Can VA do something to negotiate direct with insurance companies, like they do with hospitals for health care? If they had special agreement for veterans, that would be a big blessing.
This particular veteran , me , is very much aware of property ownership problems. Living in Birmingham , Alabama where I invested my life’s earnings for old age income , I’m older now and needing some income but at 86yo , I’m lost. Criminal activities has depleted my ownership and income . No income to pay taxes and and continue eating . So , the state has taken my property and sold it to others .
After paying my insurance on this house for 75 years , I dropped it , then a tree fell on my house from City property. The City attorney – not from city property . Even if it did , it would be classified as an act of God. God did it , the City owes you nothing .. My lawn mower was stolen so, my grass is high and the city is charging me $400 for having high grass .
I could go on with problems of having an allusion we actually own our houses . We don’t. In fact we don’t even have ownership of our own person. The government owns us .
When I was on active duty , I was in custody of the military , the government, and they were responsible for maintaining me and keeping my body fit to work , but when I was discharged , now, the government owes me nothing because I owe the government a tax for every turn I make. The VA does refer me to phone numbers of charities to call , but these charities generally have something to sell.
, or doesn’t answer the phone.
I must be a slave to those in authority who seem to be working for something else other than real American citizens.
The City will charge 400$ in two days and I have no resource to defend myself . The Veteran’s Administration has made offers to arrange for an old age home , but then I will be completely in their custody Again. I think I’ve reached my expiration date .
Sir, I’m so sorry. There’s an amazing man, Rodney Smith, Jr who started an organization years ago. He’s teaching young people about “acts of service “ by encouraging them to mow lawns for the elderly, disabled, single parents and Veterans. Please reach out to his organization through the info provided below. There are probably young people in your area who will mow your yard for free.
https://weareraisingmen.com/
P.O. Box 2182
Madison, AL 35758
Raising Men Lawn Care Inc. is a 501(c)(3) organization.
Donations are tax deductible to the fullest extent allowed by law.
Tax ID#82-3815597
Once again lots of great information!
Just what I needed to make some important decisions about buying a home or just keep renting.
Thanks for helping me with good info.
Godbless you all.
As always this is great advice and information for all of us Veterans & Active Duty…Great Articles from VA as always.. Thanks VA