As a result of serving our country and risking their lives, veterans and active-duty military receive well-deserved benefits, such as military discounts and retired pay, to name a few. However, one of the most impactful rewards service members can benefit from is achieving homeownership with a VA home loan.
What is a VA Loan?
A VA loan is a government-backed mortgage that offers incredible benefits to qualifying individuals, including no down payment, competitive rates, and no private mortgage insurance. All service members should take advantage of a VA loan to improve their military lifestyle and fulfill the American dream of homeownership.
Though VA stands for Veteran Affairs, some may think the VA loan only applies to veterans, which is merely a myth. In fact, those still serving in the military can reap the benefits of a VA loan in more ways than one.
What Are the Benefits of a VA Loan?
One of the biggest benefits of a VA loan is that it doesn’t require a down payment. But that’s just the beginning—active-duty service members can unlock other benefits that make homeownership more accessible while complementing their military lifestyle.
Financial Benefits of VA Loan
Being in the military puts you in the best possible financial position to buy a home, especially compared to traditional first-time homebuyers.
No down payment required. Saving for a traditional down payment—usually 3% to 20%—can be a big challenge for many homebuyers. But with a VA loan, you can skip the down payment altogether! While there are still closing costs, you won’t need to save a large amount upfront, making homeownership that much more achievable.
No private mortgage insurance (PMI). PMI is required for conventional loans if you don’t have the recommended 20% down payment, and it typically ranges from 0.5% to 1% of your loan amount annually. Fortunately, VA homebuyers are exempt from PMI, which means reduced mortgage payments and bigger savings at the end of each month.
Competitive interest rates. The government considers VA loans to be low risk, allowing them to offer more favorable interest rates compared to other loan programs. You can qualify for some of the most competitive interest rates available, thanks to the benefits designed specifically for veterans and service members.
Lower closing costs. While VA homebuyers aren’t required to make a down payment, closing costs still apply. The good news is that VA loans offer unique benefits, like limiting certain fees and allowing sellers to cover up to 4% of the loan amount in closing costs, which can significantly reduce out-of-pocket expenses for veterans & those currently serving, compared to other first-time homebuyers.
Lifestyle Benefits of a VA Loan
Military life often means being on the move, making homeownership feel out of reach. A VA loan offers significant value by allowing homebuyers to enjoy the lifestyle benefits of homeownership, no matter where military service takes you.
Permanent home. With no down payment required and favorable loan terms, active-duty service members can settle into a place they can truly call their own. This sense of permanence provides stability and peace of mind, creating a lasting foundation even as they navigate the challenges of military life.
We know many service members may face a change of station at some point and when that time arrives, we’ll be here to help. Our loan officers go the extra mile to ensure you have all the support you need while navigating a move and possible home sale and purchase.
Financial stability. The financial benefits of a VA loan help service members manage their finances more effectively by making it easier to budget, build equity, and spend on other expenses without the financial strain that often comes with traditional mortgages.
Freedom of ownership. Whether you want to do renovations, upgrades, or simply decorate, VA homebuyers have the flexibility to create a home that reflects their lifestyle, offering the freedom to shape their living space as they see fit.Put down roots. A VA loan allows military members to establish a sense of community, even amidst the demands of their service. By purchasing a home and settling into a neighborhood, they can create familiarity with their local area, build relationships, and create a stable environment for their families and future.
Permanent Change of Station (PCS)
Each year, more than 400,000 service members make a permanent change of station (PCS), the mandatory transfer of a military member or unit to a new duty station. Unlike temporary duty assignments, PCS orders are usually for a longer term and typically range from two to four years.
PCS is an expected part of military life. Relocating on your own or with your family involves unique challenges that civilian moves don’t typically face. Whether you have an upcoming PCS or want to prepare for one in the future, you can make your transition as smooth as possible by preparing with our PCS checklist, which includes in-depth steps such as creating a family folder, deciding on your moving method, and taking safeguarding measures.
If you receive a PCS order, a VA loan can still be helpful. It allows for flexible homeownership options, such as buying a new home at your next duty station. VA loans also make it easier to rent out or sell a home if you need to move quickly due to PCS orders. This financial flexibility provides stability for service members and their families during frequent relocations.
How Many Times Can You Use a VA Loan?
Active-duty service members can use their VA home loan multiple times—whether to purchase a starter home, upgrade to a new property, or move when changing duty stations. It can also be reused to refinance for a lower interest rate or tap into home equity. Your loan officer will guide you in calculating your remaining entitlement, ensuring you maximize the full benefits of your VA home loan for each of these purposes.
The ability to reuse your VA loan ensures members are not limited to a single property, allowing them to purchase another home without starting from scratch. This flexibility is particularly advantageous for active-duty service members who may need to relocate frequently, enabling them to secure housing with minimal financial strain.
Add Value to Your Military Lifestyle
Life can be hectic as you honorably serve your country and navigate military challenges. If you have homebuying goals now or in the future, consulting with a loan officer about a VA loan can be a game-changer. Whether you’re planning for a growing family, relocating due to new orders, or seeking lower interest rates, a VA loan can enhance your financial wellness and sense of stability.
Our loan officers specialize in VA loans and have many years of experience helping VA homebuyers like you. They can guide you in making homeownership attainable, even when it seems impossible. As you explore your options, be sure to consider the additional benefits that come with a VA loan to maximize your advantages.
