Homebuyers

Making Homeownership More Accessible for Veterans: How to Access All the Benefits of a VA Loan

Veterans and active-duty servicemembers have earned more than just our thanks. They’ve also earned helpful government benefits, especially when it comes to housing.

In a market where home prices remain high and mortgage rates can feel punishing, a U.S. Department of Veterans Affairs (VA) loan may be the key to unlocking homeownership for those who have served our country.

Buyers using these loans typically don’t have to put any money down, don’t need to pay mortgage insurance, and often enjoy lower mortgage interest rates.

But there’s a lot of misinformation about VA loans that might prevent eligible servicemembers, past and present, from using one to buy a home.

“The biggest misconception is that VA loans are difficult loans,” said Anthony Ramirez, a loan consultant at New American Funding. But that couldn’t be further from the truth.

VA loans aren’t roadblocks to buying properties. For many veterans and active-duty servicemembers, they offer a wide range of benefits that make homeownership more accessible.

Don’t be fooled by myths about VA loans

Unfortunately, myths about VA loans abound.

Some veterans may believe that securing a VA loan is a lengthy process or that these mortgages aren’t as accessible as advertised. But some of these holdups may have more to do with the individual lender than the loans themselves.

“Many of these [lenders] will add additional restrictions or barriers because the VA’s original guidelines may be too liberal for their [loan] underwriting palate,” Ramirez said.

These can include requirements for credit scores, how much debt you have compared to your income, or how much cash you have saved.

That’s why veterans and active-duty servicemembers need to seek out real estate agents and lenders who are experienced in navigating VA loans. Choosing a lender that specializes in VA loans can help you avoid roadblocks and restrictive overlays.

Take advantage of VA loan benefits

There are several VA loan benefits that could make buying a home easier.

No down payment required on VA loans

One of the biggest draws of a VA loan is that buyers don’t have to put any money down, if the home’s sale price isn’t higher than the appraisal value.

Nearly 90% of VA-backed loans are made without a down payment, according to the VA.

This can expedite the homebuying process for buyers who otherwise would need to spend years saving for a down payment.

Of course, it does mean you’ll start the loan with no equity in your home. Ramirez doesn’t think veterans should be too concerned about this, however.

“One of my favorite quotes from my dad is, ‘You can’t save as fast as property appreciates.’”

Translation: You’ll grow equity faster via the home’s appreciation than you’d grow your savings to buy the home at a later date.

Note: While VA loans don’t require a down payment, there is a funding fee that ranges from 1.25% to 3.3%. Some can have this fee waived or refunded.

If you already have a VA loan or defaulted on a previous VA loan, you will need to follow the standard VA loan limit of $806,500 in 2025. Loan limits are higher in certain, more expensive counties.

No PMI on VA loans

Another reason some buyers may be hesitant to buy a home with no down payment is because they’re worried about having to pay private mortgage insurance (PMI).

When you buy a home with a Conventional loan, you typically must pay a monthly PMI as part of your mortgage payment until you have 20% equity in your home. Buyers can avoid this by simply putting 20% down at closing.

“VA loans don’t have a monthly mortgage insurance premium,” Ramirez explained. “With the VA, you don’t have this problem.”

Lower mortgage interest rates for VA loans

Perhaps the biggest reason to use a VA loan, especially given today’s mortgage rates, is that VA loans have slightly lower interest rates than traditional mortgages.

This can save buyers money every month on their housing payments.

Easy path to refinancing a VA loans

Refinancing a VA loan into a lower rate, if rates drop, or better terms, such as a shorter mortgage, may be easier to do than with other types of mortgages.

“One of the best benefits of having a VA loan is your ability to refinance,” Ramirez noted. “The VA loan has a guideline called IRRL, or interest rate reduction loans. These loans allow for a refinance to be completed without an appraisal and without income verification.”

That means, if rates drop, you can still take advantage if you have a VA-guaranteed mortgage.

Plus, VA loans aren’t one-and-done. You can take out multiple VA loans over time. You can also have two VA loans simultaneously for two primary residences up to a certain amount.

Access to housing grants for veterans

Servicemembers who have a qualifying service-connected disability can also apply for a Specially Adapted Housing (SAH) grant through the VA.

These grants provide funding to modify their homes to make them more accessible.

For instance, SAH funds could be used to widen doorways or install ramps.

VA loans for surviving spouses

Surviving spouses of veterans may also be able to take advantage of VA loans. You’ll need to obtain a Certificate of Eligibility (COE) to demonstrate that you qualify for this loan.

Whether you’re a veteran or spouse, Ramirez recommends obtaining this before you start your home search in earnest, as it can take up to 30 days to secure.

“Depending on how long ago they served or if they don’t have a copy of their [Certificate of Release or Discharge from Active Duty], obtaining a Certificate of Eligibility may take some time,” he advised.

You can begin the process of obtaining a Certificate of Eligibility online.

Anthony Ramirez NMLS # 249819