A Local Partner for Military Families: Citizens First Bank’s Commitment to VA Lending

by Tracey M. Eddy, Vice President, Citizens First Bank

Soon after I joined the mortgage lending team at Citizens First Bank, my son was deployed to Iraq. His two tours during that war opened my eyes to the sacrifices service members and their families make and the challenges they face on a day-to-day basis. Citizens First has six locations across southwest Wisconsin, and I work at the Sparta branch-just minutes from Fort McCoy, a key training and mobilization site for active and reserve military units. I made it my mission to become an expert in the loan programs offered by the Department of Veterans Affairs (VA) so we could better serve our local military community, and Citizens First quickly embraced that commitment. As a member of the Federal Home Loan Bank of Chicago, Citizens First uses the Mortgage Partnership Finance^® (MPF^®) Program's Government product to provide affordable VA loans with the personalized service of a community bank.

VA Loans and Our Military Value Program

Citizens First is proud to have built a reputation for supporting veterans and active service members through our Military Value Program. Recently we've enhanced this support with a variety of perks such as discounts on installment loans and refunds on out-of-network ATM fees. But the centerpiece of the program continues to be affordable home loans. While our local military base does provide housing, it's not enough to accommodate our large population of active-duty service members. These families often struggle to find rentals, so for many, the best option is to buy homes where they can build equity while they're here. By selling our VA loans into the secondary market through the MPF Government product, Citizens First has been able to offer better rates than our area competitors. Combined with minimal closing costs, these savings lower barriers to homeownership.

Local Service, Ongoing Relationships

It's rare for a small community bank to service VA loans, so Citizens First's ability to retain servicing through MPF Government has been an important selling point. Because of our expertise in VA loans, we originate and underwrite these mortgage loans, allowing customers to work with us through every stage of the loan. Citizens First customers can call us and talk to the same person every time. They can also pop into a branch to ask a question-or just to cash a check, send a wire, or get a document notarized.

A Financial Home for Military Personnel and Families

For lenders looking to support current and former service members, developing expertise in VA loan programs is key. Next, get out into the community-visit your county's Veteran Service Officers and your American Legion and VFW posts to find out what's needed locally. Then ask your FHLBank what resources are available to help you meet those needs. For example, Citizens First is looking into combining MPF Government loans with FHLBank Chicago's DownPayment Plus^® (DPP^®) program, which provides grants of up to $10,000 to help cover down payment and closing costs for income-eligible borrowers.

Ultimately, our goal is to stand by service members and help them overcome whatever home mortgage obstacles they face. If they don't qualify for a VA loan right away, we find a different loan option to get them through until they do. If their home requires renovations, we work to provide the right financing. Our hope is that veterans, active service members, their families, and realtors all think of us as the local military bank they can count on.