The weather is getting warmer, the flowers are in bloom and “for sale” signs are blossoming on hundreds of thousands of homes across the United States. Spring is the traditional start of the homeownership journey for many Americans, but especially for service members and Veterans who are used to spring bringing Permanent Change of Station (PCS) orders that require military members and their families to move to different military installations.
Veterans may be considering new job opportunities, moving closer to their families or finally retiring and looking for that “forever home.” Whatever the reason, all service members and Veterans should consider purchasing their new homes with a VA-guaranteed home loan, the unique option that makes housing more affordable.
How does a VA-guaranteed home loan make a house more affordable? VA-guaranteed home loans have specific requirements for lenders to help keep loan costs and down payments low or non-existent, ensure competitive interest rates for military borrowers and eligible surviving spouses, and do not require private mortgage insurance. This helps keep more money in borrowers’ pockets and lowers overall mortgage costs over the life of the loan.
Veterans with service-connected disabilities who receive VA service-connected disability compensation save even more money, since the VA funding fee—a one-time payment the borrower pays on a VA-guaranteed home loan—is waived. With funding fees as high as 2.15% (first-time use of the benefit) and 3.3% (subsequent uses), this could result in tens of thousands of dollars in savings.
But for Veterans who are required to pay the funding fee, a new change this year allows you to deduct that funding fee on your taxes, if you are itemizing. Veterans who pay the funding fee have the option to roll the fee into their loan so they do not need to pay it out-of-pocket at closing.
VA Deputy Secretary Paul R. Lawrence, Ph.D., recently posted three videos about the VA-guaranteed home loan to help Veterans understand how this important benefit makes homeownership more affordable.
- Glad You Asked: Home Loan (Part 1): Veterans have received more than 29 million VA home loans since inception, and Lawrence wants every Veteran who is eligible to understand the VA home loan process.
- Glad You Asked: Home Loan (Part 2): Lawrence provides an overview of the VA home loan eligibility and loan approval process, including appraisals, credit scores and debt-to-income ratios that can impact a Veteran’s ability to obtain a VA home loan.
- Glad You Asked: Home Loan (Part 3): In the final part of the VA Home Loan series, Lawrence discusses how lenders evaluate a Veteran’s financial health to ensure they can repay the loan. He highlights tools like the Veterans Benefits Banking Program that help improve credit, reduce debt and support long-term financial goals, and he further encourages Veterans to explore available resources.
Fiscal Year (FY) 2025 was a great year for Veterans using their VA-backed home loan benefit, with more than 500,000 loans guaranteed. Notably, more than 30% of all VA-guaranteed home loans issued in FY2025 went to Veterans under the age of 35—nearly 170,000 loans to Millennials and Gen Z Veterans!
The VA Home Loan program continues to serve Veterans across generations. In FY 2025, Veterans from every service era used their VA-guaranteed home loan benefit to buy, build or refinance a home. Nearly 850 Veterans who served prior to the Vietnam era, including during the Korean War and World War II, utilized the program, along with more than 8,000 Veterans over the age of 80.
Homeownership can be a significant financial commitment, but the VA-guaranteed home loan offers Veterans a unique earned benefit that can consistently save them money and be used again and again. Whether it’s purchasing a first home, refinancing or using the benefit again later in life, Veterans can take advantage of a VA-guaranteed home loan at any stage. It truly is a lifetime benefit.
The VA Home Loan program staff are here to assist you. For more information, visit VA home loans online.
You can also use the resources below to learn more about the VA home loan program and the home-buying process.
Online resources
- Download the CFPB home loan toolkit (PDF)
- Get tools and resources for homebuyers from CFPB
Helpful videos on YouTube
- Overview of home loans and how to apply
- Top 5 benefits of the VA home loan program
- True costs of home ownership
- Using your VA home loan benefit: Where to start
Author: briannogues