A Guide to VA Home Loan Benefits

A Summary of Veteran Loan Benefits

The VA loan program helps qualifying U.S. veterans and military personnel buy and refinance homes. VA loans are offered by private lenders and guaranteed by the federal government. Keep reading to learn some of the reasons you may want to apply for a VA loan.

Benefits of Using a VA Loan to Purchase a Home

Veterans and active-duty service members have unique benefits through the U.S. Department of Veterans Affairs (VA). One is the ability to use a VA loan to purchase a home with perks designed to help eligible applicants achieve their homeownership dreams.

Unique Eligibility Requirements

VA loans can be more accessible to those who may not qualify for conventional loan options. Here’s how:

• Low minimum credit score: Lenders can have more flexible credit score requirements for VA loans. Don’t let a lower credit score stop you from applying!
• Eligibility for surviving spouses: Qualifying surviving spouses can benefit from a VA loan without the required funding fee.
• No loan limits:Veterans can qualify for a VA loan with no down payment and no maximum home price. Previous VA loan limits were removed for those with full VA entitlement.

Savings Opportunities

For those who have hesitations about mortgage costs like down payments, closing costs, and mortgage insurance, here are some potential areas for savings (with a VA loan) to consider:

• Competitive interest rates: Since the mortgages are VA-insured, lenders can often offer lower interest rates than conventional loans. But keep in mind, your mortgage rate is unique to you and your financial situation.
• 0% down payments: Since the VA backs these loans, eligible veterans and military personnel can buy a house with no down payment, making homeownership more affordable. This is the main reason VA loans are one of the top benefits of military service.
• Limits on closing costs: VA loans allow the buyer and seller to negotiate who will pay closing costs. These costs can include origination fees, discount points, buyer-broker (often known as a real estate professional) fees, and the VA funding fee.
• No mortgage insurance:Veterans don’t have to pay for mortgage insurance when they buy or refinance a house with a VA loan.
• No prepayment penalties:A prepayment penalty is a fee some lenders may charge when you pay down or pay off a mortgage sooner than the terms require. There are no prepayment penalties allowed with VA loans.

Future Uses

For those who are thinking long-term, here’s what a VA loan can bring to the table:

• VA loan benefits can be reused: Whether you are currently serving or served in the military 40 years ago, you can use a VA loan to buy or refinance a home. Plus, you can use your loan benefit more than once. For example, if you bought a starter home with your VA loan benefit, you can use it again when you’re ready to move into a larger home.
• Simplified VA loan refinancing: Veterans who qualify can refinance using the VA IRRRL program, which is sometimes called a VA streamline refinance. These loans help veterans take advantage of lower rates with less paperwork and faster closings. Veterans can only use the IRRRL program to refinance an existing VA loan into a new VA loan.

Other VA Loan Considerations

VA home loans can have many pros, but for some, there are potential drawbacks. As you weigh the pros and cons, consider chatting with a mortgage lender that specializes in VA loans, such as Freedom Mortgage. Here are some requirements to keep in mind:

• VA funding fee: Most Veterans will pay a one-time VA funding fee when they use a VA loan. This fee helps the VA fund the VA loan program. The fee is based on your service, your down payment, and whether you’ve had a VA loan before. Veterans with a disability recognized by the VA and some surviving spouses are eligible for a VA funding fee waiver.
• Higher appraisal standards: Homes purchased with a VA loan must meet minimum property requirements (MPRs). These requirements mean you'll have an appraisal that goes beyond what is required for a conventional loan. The MRPs and this appraisal exist to protect veterans from getting a home that needs excessive repairs.
• Restricted to primary residence: You can only use your VA loan for a primary home (a home you will live in). If you use it for a rental property, like an apartment building, you'll have to live in one of the units. You cannot use a VA loan for investment properties.

How To Move Forward with a VA Loan

If the advantages of a VA loan meet your financial needs, it’s simple to get started. First, you’ll find a lender that offers VA loans, such as Freedom Mortgage. Then, you can look into getting prequalified, which gives you a better understanding of your eligibility and potential monthly payment before submitting a VA loan application. Once you’re ready, you’ll apply for the VA loan, and if approved, move forward with closing on your new home.

Rest assured, you don’t have to navigate the VA loan process alone. Freedom Mortgage can help you each step of the way to ensure you’re making confident homebuying decisions.

Final Thoughts: Should You Get a VA Mortgage?

A VA mortgage may be the right fit for you if you meet eligibility requirements and can comfortably afford making monthly mortgage payments. Depending on the current interest rates, if you plan to live in your home for just a short period of time, you might want to consider a VA adjustable-rate mortgage (ARM) for interest savings.

If you served our country and are interested in becoming a homeowner, now could be a great time to benefit from a VA home loan. Perks like no down payment requirement and low interest rates can expedite your path to homeownership and offer savings opportunities to support your financial health.

Weigh your options, speak with a loan advisor, and when you’re ready, consider getting prequalified for a VA loan today.

By Victoria Araj; Published on November 7th, 2025

Victoria Araj is the Senior Director, Managing Editor at Freedom Mortgage. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.