Conventional mortgage rates have been bouncing around 6.5% to 7% for months, and every time the Federal Reserve hints at a cut, bond markets seem to shrug it off.
Meanwhile, one corner of the lending world is still handing out sub-7% money with no down payment, no monthly mortgage insurance, and a seller who can legally cover your closing costs.
That corner is the VA loan, and roughly 1 in 3 veterans who qualify for one never uses it.
According to loan officers I've talked to, the reasons are almost always the same: they assume it's a hassle, they think it's only for first-time buyers, or they were told a conventional loan is "just easier." None of that holds up.
On a $400,000 home, a VA buyer putting zero down at 6.25% pays about $2,463 a month in principal and interest.
The same buyer using an FHA loan with 3.5% down pays roughly $2,470 — on a smaller loan balance — because FHA charges mortgage insurance premiums both upfront and every month.
A conventional loan with 5% down and a 7% rate runs closer to $2,660.
Over thirty years, that gap can stretch well past $50,000.
The funding fee trips people up, but it's often smaller than they expect.
First-time users with no disability rating pay 2.15% of the loan amount, which on a $400,000 purchase is $8,600.
Veterans with a service-connected disability rating are exempt entirely, and so are surviving spouses in most cases.
There's also a detail most buyers never hear: VA loans are assumable.
If you buy at 6.25% and rates hit 8% in three years, a future buyer can take over your loan at your rate, which makes your house dramatically easier to sell.
The catch is that the seller has to agree, and in a bidding war against a cash offer, a VA buyer can still lose.
Sellers sometimes balk at the VA appraisal, which includes a minimum property requirements inspection.
But that inspection isn't the same as a home inspection, and it mostly flags things like peeling paint, missing handrails, or a roof that's actively failing.
If a seller refuses a VA offer, they're often turning down a buyer who is just as qualified as anyone else.
One more thing worth checking: many states run their own VA-backed programs that stack additional down payment assistance on top of the federal benefit.
Texas, California, and Florida all have versions worth a phone call. **The bottom line:** If you have a Certificate of Eligibility sitting in a drawer, pull it out this week.
In a market where every tenth of a point costs you real money, the VA loan isn't a consolation prize — it's the best financing tool most Americans will ever have access to.
Final Thoughts
The only thing standing between you and it is a phone call you probably should have made years ago.