VA Loans Helping Veterans Become Homeowners Sooner

Ahead of Veterans Day, new Realtor.com research examines how a benefit earned through service to our country can help veterans purchase homes and build equity. Eligible veterans and active-duty service members using a VA loan with no down payment can become homeowners about four years earlier than buyers who save for the 10% down payment typically required for a conforming loan.

According to Realtor.com online survey data, about one-third of first-time buyers say they find it challenging to buy a home because they lack sufficient funds for a down payment. About one in five cite a low credit score as an obstacle. Yet a Veterans United Home Loans survey found that only about three in 10 veterans know VA loans can be used without a down payment.

In the past 12 months, 75.7% of home sales financed with VA loans involved no down payment, and 86.1% involved a down payment of less than 10%. By contrast, only 41.1% of sales using conforming loans had a down payment below 10%. The average down payment was 4.3% for VA loans, compared with 19.1% for conforming loans.

“VA loans can change the math of buying a home for eligible veterans and service members,” said Jiayi Xu, Senior Economist at Realtor.com. “The advantage goes beyond buying with no down payment. Lower mortgage rates and more flexible credit criteria can also put homeownership within reach for buyers who might otherwise struggle to qualify. Making sure veterans understand these benefits is an important first step.”

VA Loan Savings on a Typical-Media Home in the U.S.:

VA Loans Aiding Veterans

For a typical $419,250 home, a VA borrower making no down payment would need $41,925 less at closing than a buyer using a conforming loan with 10% down. For a first-time buyer, that upfront difference could reduce the time needed to save enough for a purchase by about four years. The VA borrower’s estimated monthly payment is nearly identical to the conforming borrower’s, even before considering the benefit of having those savings available sooner.

VA loans may offer advantages beyond eliminating the down payment. From October 2025 through September 2026, the average rate on a 30-year fixed VA loan was 5.81%, compared with 6.22% for a conforming loan. In September 2026, average rates were 6.36% for VA loans and 6.91% for conforming loans.

For the example above, a buyer purchasing a $419,250 home with a VA loan and 10% down would have an estimated monthly payment of $2,387—$261 less than the payment for a conforming-loan buyer also putting 10% down. This represents estimated annual savings of more than $3,100. With no down payment, the VA loan’s estimated monthly payment would be $2,668, about $20 more than that of a conforming loan with 10% down, while letting the VA borrower retain the $41,925 otherwise used for the down payment.

VA loans do not require private mortgage insurance. However, borrowers may owe a VA funding fee, depending on factors including military status, loan purpose, and down payment. The fee may be added to the loan balance.

VA loans can offer flexibility to borrowers who do not have excellent credit. Nearly one in four recent VA borrowers (24.3%) had a Fair credit score of 580 to 669, compared with 4.8% of recent conforming-loan borrowers. At every credit-score level, VA borrowers made smaller down payments relative to the purchase price than conforming-loan borrowers. This flexibility can be particularly valuable for younger and first-time buyers who may not have accumulated substantial savings or established a strong credit history.

Despite the program’s advantages, limited awareness and persistent misconceptions remain significant barriers to using the VA loan benefit. This underscores the need to clarify the program’s core advantages for eligible households.

“The VA loan is one of the most powerful homebuying tools available, but knowing what you’ve earned and what it can do for you are two different things. That’s the education gap we’re working to close with Mission Zero.” said Chris Birk, VP of Mortgage Insight at Veterans United Home Loans. The biggest benefit of VA loans has been there from the beginning – the ability to buy with 0% down. But too many veterans still don’t know that’s possible. We have to continue to challenge homebuying misconceptions, close the education gap and make sure veterans and service members understand what their hard-earned homebuying benefit truly offers.”

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