With mortgage rates still hovering near 7% for a standard 30-year loan, a lot of veterans and active-duty service members are sitting on a benefit that could save them tens of thousands of dollars over the life of a loan.
The Department of Veterans Affairs home loan program doesn't require a down payment, doesn't require private mortgage insurance, and often comes with lower interest rates than conventional loans.
Yet roughly 1 in 5 eligible veterans has never used it, according to lender surveys.
Many service members assume the VA loan is only for first-time buyers or only works for certain property types.
You can use a VA loan more than once, and in many cases you can use it while still carrying an existing VA loan, as long as you have enough entitlement left.
First, the VA funding fee — a one-time charge of 1.25% to 3.3% of the loan amount — is waived entirely for veterans with a service-connected disability rating, and it can be rolled into the loan for everyone else.
Second, sellers can pay up to 4% of the purchase price in concessions, which covers closing costs, prepaid taxes, and even points to buy down your rate.
That's a negotiating tool most buyers don't know they have.
VA loans are technically assumable, meaning a buyer who qualifies can take over your existing loan at your original interest rate.
If you locked in at 3% in 2021, that's a real selling point in today's market — and it's one reason some listings with assumable VA loans are drawing multiple offers.
The catch is that not every seller or realtor understands the program, and some still push back on VA offers out of old myths about strict inspections or slow closings.
In practice, VA appraisals aren't the same as home inspections, and the VA doesn't require repairs unless there's a genuine safety or structural issue.
If a seller rejects your offer for that reason, you can ask your agent to educate them — or walk away and find a seller who gets it.
For anyone renting right now and watching rents climb 3% to 5% a year, running the numbers on a VA loan is worth an afternoon.
A $350,000 home with zero down at 6.5% runs about $2,212 a month before taxes and insurance.
The same home with 10% down on a conventional loan at 7% runs roughly $2,230 — plus PMI of $100 or more a month until you hit 20% equity.
One more thing worth checking: some states offer additional benefits stacked on top of the federal program, including down payment assistance, property tax exemptions, and reduced closing costs.
These vary widely, so it's worth a call to your state's veterans affairs office or a VA-approved lender who works in your area. **Our take:** The VA loan is one of the few government programs that delivers immediate, measurable savings to the people who earned it.
Final Thoughts
If you've been sitting on the sidelines because you assumed it was complicated or limited, a 20-minute call with a VA-savvy lender could change your housing math for the next 30 years.