Housing News

VA Loans Could Help Veterans Buy a Home Four Years Sooner, New Report Finds

In honor of Veterans Day, new research highlights a valuable homebuying benefit for veterans and active-duty servicemembers: the ability to purchase a home with no down payment, potentially four years sooner than they otherwise could.

A new Realtor.com report finds that U.S. Department of Veterans Affairs (VA) loans could help eligible homebuyers overcome one of the biggest obstacles to homeownership.

“The main advantage of a VA loan is that it removes the down payment, often the largest barrier to homeownership,” said Jiayi Xu, senior economist at Realtor.com. “In today’s high-rate environment, VA loans also tend to carry lower interest rates than conforming loans, which reduces monthly costs.”

Here’s what veterans and military homebuyers should know about VA loan benefits, including potential savings, credit requirements, and eligibility.

How VA loans could help veterans buy a home four years sooner

VA loans could help eligible veterans buy a home about four years sooner by eliminating the need to save for a down payment, according to Realtor.com research.

Consider a home priced at $419,250, the national median listing price in September, used in the report. A Conventional mortgage requiring 10% down would mean saving $41,925 before accounting for closing costs.

Eligible veterans using VA financing could potentially purchase the same property without a down payment.

Based on typical first-time homebuyer savings rates of 10% to 15% of household income, Realtor.com estimates that eliminating the down payment could shorten the time needed to become a homeowner by about four years.

Many military homebuyers are already taking advantage of zero-down financing. Over the past year, 75.7% of VA-financed home purchases involved no down payment.

The average VA loan down payment was 4.3%, compared with 19.1% for conforming loans. That could leave veterans with more savings for moving expenses, emergencies, or home improvements.

How much can veterans save with a VA loan?

Veterans could save hundreds of dollars a month with a VA loan thanks to typically lower mortgage interest rates and the absence of private mortgage insurance.

Mortgage interest rates for VA loans averaged 5.81% from October 2025 through September 2026, compared with 6.22% for conforming loans, according to Realtor.com.

For a $419,250 home with 10% down, a VA borrower’s monthly mortgage payment would be $261 a month less than for a conforming-loan borrower. That’s a savings of $3,132 annually.

Even a veteran purchasing with no down payment would have an estimated monthly payment of $2,668, just $20 more than a conventional borrower putting 10% down.

These comparisons include applicable loan fees or mortgage insurance. Actual payments depend on loan terms and borrower qualifications.

Unlike many Conventional mortgages with smaller down payments, VA loans don’t require private mortgage insurance.

VA borrowers may owe a one-time funding fee. This can generally be financed into the loan. Some borrowers qualify for an exemption.

Can veterans qualify for a VA loan with lower credit scores?

Veterans may be able to qualify for a VA loan with lower credit scores because the VA does not establish a minimum credit score, although individual lenders may have their own requirements.

Nearly one in four recent VA borrowers, or 24.3%, had credit scores between 580 and 669, compared with just 4.8% of conforming-loan borrowers, according to the Realtor.com report.

The VA doesn’t establish a minimum credit score. However, individual lenders may have their own requirements.

“A past credit setback doesn’t have to end the conversation,” said Stephen Moye, a San Diego-based loan officer at New American Funding (NAF). “Underwriters can review it manually and consider strengths like a track record of making a similar housing payment.”

Another consideration is residual income, or the money a household has left after paying major monthly expenses.

“One thing I like about VA underwriting is that it looks at what a family has left after paying the bills,” said Moye. “If there’s enough room in the monthly budget, a higher debt-to-income ratio can still work.” The ratio is how much debt buyers have compared to their earnings.

These factors can give lenders a more complete picture of a borrower’s financial situation. Approval still depends on meeting applicable loan requirements.

Can veterans use their VA home loan benefit more than once?

Eligible veterans can use their VA home loan benefit more than once, provided they have sufficient entitlement and meet the applicable loan requirements.

For military families who relocate frequently, understanding how VA loan entitlement works can open up additional homebuying opportunities.

“That can be a big help when you relocate,” said Moye. “If you have enough entitlement left and qualify for the new loan, you may be able to buy your next primary home while keeping the VA loan on your previous one.”

VA loan entitlement is how much the VA will guarantee to the lender if the borrower stops making their mortgage payment. Those with a full entitlement typically don’t have to make a down payment.

Those with partial entitlement have existing VA loans, own a home they had a VA loan on even if they paid off the mortgage, sold a property for less than they owed on their loan, or there was a foreclosure on the property, among other things.

VA loans are available to qualifying veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses. Eligibility depends on service history and other requirements.

For veterans who assume homeownership is still years away, a VA loan could change the timeline considerably. Understanding the benefits they’ve earned may be the first step toward buying a home sooner.

Stephen Moye NMLS #268619