How Artificial Intelligence Is Helping Veterans Become First Time Homebuyers

How Artificial Intelligence Is Helping Veterans Become First Time Homebuyers

According to recent statistics, the number of homeless veterans in the United States has increased by about 4% as of 2020, which has unfortunately exacerbated an already troubling situation. The government the Department of Veterans Affairs (VA) has come up with accommodating plans to assist veterans in becoming homeowners, however, the problem remains. 

Veterans First Mortgage conducted a survey in 2016 to learn more about the VA home loan program. The survey covered hundreds of hopeful veterans looking to buy a home. A survey revealed that almost half of the people had not yet purchased a home with their VA loan benefits, and upon further investigation, there were five common reasons why this was the case:

The financial implications of the event left them unprepared
There was a lack of understanding of how to proceed 
In their opinion, their credit was inferior 
They did not think they were eligible for the program.
Many assumed that VA loans would take longer than they do.

According to the survey, veterans have two major problems obtaining home loans: knowledge and accessibility. Artificial intelligence (AI) can help with these problems.

Artificial Intelligence Simplifies The Finding Process

Today, AI is becoming more user-friendly and is widely used to offer personalized recommendations to veterans based, for instance, on their previous searches and purchases. The use of AI has a significant impact on commerce: optimizing products, planning inventory and organizing logistics in every sector.

The percentage of veterans who cannot afford housing costs is nearly 5% lower than those without military service. Comparing this number with the stats for Gulf War and Vietnam veterans, which indicate they are 25% more likely to be able to afford to house, reveals a serious problem that has become pervasive for the past two decades. 

AI and its data analysis capabilities are being used to scan for affordable homes to assess the value of foreclosed homes. Oftentimes, this information is used to help veterans make informed decisions. 

This AI strategy is being utilized, among other things, by Homelight, which uses machine learning and AI to improve its pricing algorithms. The system leverages historical data and input from homeowners, brokers, and agents to provide accurate home estimates. This further simplifies the home search process for home buyers.