3 Ways VA Loans Boost Access to Homeownership

By Chris Birk

Are you a veteran or servicemember hoping to buy a home? In 2025, the high cost of housing is making homeownership unaffordable for many Americans. However, for veterans, a VA loan can make your dream of owning a home much easier than you think.

VA loans, which were created in 1944, are designed to help veterans and military families get a shot at home ownership. Over 80 years later, this historic benefit program is still making a difference for a new generation of military homebuyers.

VA loans help veterans qualify for financing by offering more flexible and affordable requirements than other mortgages. 

What is a VA loan?

A VA loan is a home loan available through the Department of Veterans Affairs (VA). These loans are available to veterans, servicemembers and their families to help them buy, build or repair their housing. 

Some people mistakenly assume that they have to apply for these loans directly through the VA. But in order to take out a VA loan, you actually have to go through a bank or credit union that works with the VA. 

What part does the VA play in offering the loan? To help you qualify for a mortgage, the VA “guarantees” the loan, meaning it promises the lender that it will cover a portion of the loan if you fail to repay. As a result, these loans have more flexible requirements to qualify than most other loans.

How do VA loans make it easier to buy a home?

Let’s look at three big ways VA loans fulfill their mission of boosting access to homeownership. 

1. Lower credit score requirements

Many mortgage lenders require you to have credit scores of 660 or higher to qualify for their loans. Even FHA buyers need scores of at least a 640 to qualify with some lenders.

With VA loans, each lender sets the minimum score, but they may approve you with scores of 620 or lower. As a result, you should find it easier to qualify for a VA loan than any other type of mortgage.

The VA loan program is also more forgiving when it comes to negative information on your credit reports, such as bankruptcy, foreclosure or short sales. Depending on your circumstances, you may even qualify immediately after a short sale.

With that said, there are still major advantages to having good credit. The higher your credit scores, the lower your interest rate will be, which can save you tens of thousands of dollars on interest charges over the life of your loan.

Not sure how to improve your credit scores? If you have questions about how to gain points, or you want a full professional review of your credit reports, NFCC-certified credit counselors are here to help! 

2. No down payment required

For military families, frequent moves and unexpected deployments make it hard to save for a down payment. But VA home loans provide a solution: mortgages with $0 down payment required.

With conventional mortgages, the average down payment for first-time buyers was 9% in 2024, according to the National Association of Realtors. With VA loans, you don’t have to put any money down unless your loan exceeds a certain amount. For 2025, the VA says that $700,000 is the maximum amount most VA-backed lenders will offer you without requiring a down payment. 

That means, for aspiring homebuyers, you may already be financially ready to use your VA benefit to buy a home. 

3. No private mortgage insurance

For people who take out conventional mortgages — which are the most common type of home loan — putting less than 20% down can be a problem. 

When your down payment is under 20%, you have to pay private mortgage insurance (PMI) each month until your loan balance drops below 80% of the home’s value. Unfortunately, this can add hundreds of dollars to your housing expense each month.

With VA loans, you don’t have this issue. Since the VA backs your loan, you can make a $0 down payment and avoid PMI altogether.

Which type of mortgage is best for you?

There’s no “best mortgage” out there. The best type of mortgage depends on your individual needs and financial circumstances. But for eligible homebuyers, a VA loan is certainly worth serious consideration. There’s no other way to secure financing from a trustworthy lender when you have low credit scores and no down payment. 

If you want to talk to a housing counselor to get a better sense of your mortgage options, or you’d like more education and resources on homebuying, the NFCC is here to help!

About the Author
Chris Birk is the nation’s leading expert on VA Loan benefits. He authored The Book on VA Loans in 2011, and maintains the VA Loans Insider blog. VA loans were created seven decades ago to help veterans and military families get a foothold in the housing market. Today, this historic benefit program is making a difference for a new generation of military homebuyers.