PONDERA COUNTY – The Department of Veteran’s Affairs (VA) is still in the process of refunding many Montana veterans who were overcharged substantially on their home loans, a crisis that has been occurring nationwide.
Montana’s median VA loan amount is calculated to be $227,000 compared to the $230,000 national media VA loan amount, according to information on the Veterans Data Central Website. Montana’s Pondera County has a median VA loan amount of $127,000.
Earlier this year, an inspectors general report revealed that 53,000 U.S. disabled veterans across the country were forced to pay extra fees ranging from a few thousand to at least $20,000 on their VA home loans for more than 20 years. Department officials examined 130,000 cases this past summer and discovered issues such as clerical mistakes or changes in disability ratings once veterans settled on a home loan.
Veterans and service members are required by the VA to pay a funding fee to apply for a VA home loan, which can cost 0.5 percent and 3.3 percent of the total money borrowed in order to defray a portion of the administration costs for the VA. However, disabled veterans are normally exempt from paying these fees.
The VA has issued a total of $400 million in loan refunds as of October 2019.
Data from the Housing Assistance Council show there are 87,936 veterans residing in Montana, with 21.6 percent of those veterans identified as disabled. According to the data, 8.6 of Montana veterans are living in poverty.
The VA has announced that in the future, the organization will produce a new policy guide for loan borrowers to better determine their disability status and to provide more oversight on applications that may be approved for waived fees. It will also establish an outreach program that notifies veterans of waivers they are qualified to earn.
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