A lot of Veterans today feel like buying a home is out of reach. In fact, according to a recent survey from NewDay USA, nearly half of Veterans believe homeownership just isn’t realistic right now.
But here’s the thing. Many are a lot closer than they think.
Most Veterans know VA home loans exist. What many don’t fully understand is just how powerful the benefit really is. And unfortunately, there are several common misconceptions that stop people from even exploring the option.
Here are some of the biggest ones.
You May Not Need a Down Payment at All
One of the biggest advantages of a VA loan is the ability to buy a home with little to no money down. Yet many Veterans assume they need to save tens of thousands of dollars before they can even start looking.
That simply isn’t always true.
For many qualified buyers, a VA loan can eliminate the need for a large upfront down payment altogether. That can shave years off the time it takes to get into a home.
Closing Costs May Be Lower Than You Think
Another major advantage is that VA loans place limits on certain closing costs buyers can be charged. According to the U.S. Department of Veterans Affairs, this can help keep more money in your pocket when it’s time to close.
When you combine lower closing costs with little or no down payment, buying a home can become much more achievable than most people expect.
You May Not Have Monthly PMI Payments
With many conventional loans, buyers who put down less than 20% are required to pay private mortgage insurance (PMI). That can easily add hundreds of dollars to a monthly payment.
But VA loans typically do not require PMI, even with a low or zero down payment.
That’s real monthly savings that can make homeownership much more affordable over time.
BAH and BAS Can Help You Qualify
If you’re active duty military or a qualifying reservist, your Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) may also help you qualify for more home.
A lot of buyers don’t realize those allowances can count as income during the loan qualification process. Since both are generally non-taxable, they can strengthen your buying power even more.
Bottom Line
VA home loans remain one of the most powerful benefits available to Veterans and active-duty military members. And for many people, the opportunity to buy a home may be much closer than they realize.
If you’ve served, are currently serving, or know someone who has, it’s worth having a conversation with a trusted lender who truly understands VA financing. You may qualify for more than you think — and you may be able to buy sooner than you expected.