Joshua and Erica Bacon had been looking for their first home for just a few weeks. They were exploring options for financing through the Veterans Administration loan program, and starting to look at properties in Cranston, Warwick and Coventry.
Then a friend from Georgia passed along a tip. He had qualified for a home, mortgage-free, through a national nonprofit program that works with banks to place combat-wounded veterans in bank-owned houses. A house in Rhode Island also was available through the Military Warriors Support Foundation.
Joshua Bacon, a 41-year-old, combat-wounded veteran of the U.S. Army, applied to the program and within weeks was accepted. In late May, he and his family moved into a former bank-owned property in Warwick, on a quiet street in the Norwood Village area.
Citizens Bank, which donated the Warwick house, also hired contractors and organized more than 50 employee volunteers who spiffed it up, including replacing the roof and installing new landscaping.
It was the first experience the bank had with Military Warriors Support Foundation, but may not be the last. The bank may donate properties in the future, according to Marc Paulhus, Rhode Island president for Citizens Bank.
One of the aspects of the Military Warriors program that he appreciated was its commitment to a three-year financial mentorship program for the new homeowners. Although the house does not have a mortgage, many military veterans may have lived on bases, or otherwise be unfamiliar with the additional costs that occur through homeownership, Paulhus said.
“It’s really important to not only provide the home, but also make sure they can keep the home,” he said.
In Rhode Island, banks typically refer veterans for financing through the VA loan program, which is well-known and established. It offers a zero-down option for veterans – who do not have to be injured to participate – and has competitive interest rates and often lower credit-score requirements.
In addition, the VA loans do not require borrowers to pay private mortgage insurance, or PMI, which is typically applied in any purchase made with less than a 20 percent down payment, said Brian Kilday, team leader for residential mortgages at Bank Rhode Island.
The Military Warriors program, based out of San Antonio, Texas, allows combat-wounded veterans, and the widows of combat veterans, to move into a mortgage-free house. Participating banks donate bank-owned properties to the program.
Currently, 19 states have homes made available to qualified veterans or their widows. Only one New England state has a home available, a single-family house in Pittsfield, N.H.
Bacon, who grew up in Warwick, served in Afghanistan in 2009 and 2010.
He had no single injury, but over the course of the deployment, going in and out of buildings and driving the vehicles, sustained so much damage to his spine that he required disc fusion surgery when he returned home.
Now, he has chronic pain and mobility problems.
Before Bacon, his wife and 11-year-old stepdaughter moved into the new house, he said they rented a house in Warwick for several years. “It was paying a mortgage for someone else,” he said.
He is building something for his family, he said. “It’s a great way to get your family settled.” •
