U.S. — Mortgage industry officials are emphasizing the importance of education for eligible service members regarding the benefits and financial considerations of the VA loan program. A Rocket Mortgage survey indicated that 48% of eligible service members consider a VA loan when purchasing a home, while 54% are aware that these loans do not require a down payment.

Karl Benjamin, executive vice president of third-party origination at Cardinal Financial, stated, "A lot of eligible service members and veterans simply aren't getting clear education early enough in the homebuying process." He explained, "Many buyers still assume they need 10% to 20% down because that's been the traditional narrative around mortgages for decades." VA loans do not require a down payment, nor do they require private mortgage insurance. Benjamin added, "When a borrower understands up front that they can access zero-down financing, avoid PMI and benefit from competitive rates specifically because of their service, the entire financial picture shifts."

Benjamin noted, "Military families are often navigating relocations, deployments and major life transitions." Destinee Stice, vice president of loan origination at NewDay USA, said, "There are so many benefits thrown at you once you exit the service that it's hard to keep straight." She added, "The VA home loan benefit also offers some processes that make buying a home a lot more personal and in your control versus electing for a conventional or FHA product." VA loans generally offer competitive interest rates and more flexible credit guidelines compared to many conventional products, and the VA limits certain closing costs for military families.

A NewDay USA survey of military veterans found that 49% of non-homeowners identified saving for up-front costs as a barrier, and 45% expressed concerns about covering closing costs. Stice stated, "There are programs available and ways to cover the closing costs." She advised, "Consult with a lender that specializes in VA and offers niche products, because it is possible to get no money out of pocket at closing."

Benjamin said, "It's also important for borrowers to understand that while a zero-down-payment structure can improve accessibility, it may result in a higher monthly payment compared to putting money down up front." VA loan borrowers who make no down payment begin with no home equity. "A zero-down-payment loan is not inherently risky if the borrower is financially prepared for the full cost of homeownership," Benjamin said. VA loans typically require a funding fee, which ranges from 1.25% to 3.3% of the loan amount. The fee's amount depends on whether a down payment is made and if it is the applicant's first VA loan, though some veterans with a disability status are exempt.

Stice said, "While the VA appraisers follow a slightly different process, they are ensuring the home is in livable condition so the veteran's family is protected." There is no specific credit score requirement for VA loans. However, Stice said that accounts in collections or charged off could affect a borrower's ability to buy a home. She also advised borrowers to minimize their debts given the large monthly payment associated with a home purchase, saying, "Ensure your debts are as minimal as possible, since you are entering into a large monthly payment." Benjamin added that borrowers who benefit most from a zero-down VA loan typically have a clear long-term plan, not just a qualified application. "The conversation should extend beyond what's possible at closing and focus on what the loan looks like years down the road," he said.

Why It Matters

The differences between VA loans and conventional mortgages affect a large number of eligible service members and veterans, particularly regarding financial preparedness for homeownership. In March 2026, the typical U.S. homebuyer made a $64,000 down payment, a cost that VA loans can help eligible individuals avoid. The observed educational gaps and financial concerns among military veterans point to the importance of understanding available benefits to make informed housing decisions.