Veterans and CEOs from RedBalloon and MilitaryHire speak exclusively to Fox News Digital about how they help service members transition into the civilian workforce.
American military veterans are eligible for a wide range of benefits through the Department of Veterans Affairs (VA), with popular benefits ranging from health care to higher education funding assistance under the GI Bill, as well as VA home loans.
VA home loans allow eligible veterans, service members, and surviving spouses to become homeowners with benefits that help them pay for home loans on more favorable terms.
The VA does not require a deposit for VA Home Loans – although lenders may require down payments from some borrowers using the VA guarantee. It also helps home buyers obtain competitive interest rates, limits transaction closing costs and eliminates the need for private mortgage insurance.
VA home loan benefits are also available for the lifetime of an eligible borrower and the collateral can be used multiple times.
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VA home loans are available to qualified veterans and military personnel, as well as surviving spouses. (Ronaldo Silva/NurPhoto via Getty Images / Getty Images)
Private lenders, including banks and mortgage companiesmake VA loans to veterans and military members with the VA guaranteeing a portion of the loan – which allows the lender to offer the borrower more favorable terms.
VA home loans are not only available to home buyers, as they can be used to lower interest rates through refinancing and to purchase or modify homes to accommodate permanent and total service-connected disabilities.
To be able to obtain a VA Loana qualified veteran, service member, or surviving spouse must obtain a Certificate of Eligibility (COE) from the VA or their lender. Eligibility for specific benefits may vary depending on length of service, service status, and nature of service.
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VA home loans can eliminate the need for a down payment and offer a lower interest rate for veteran borrowers. (Steve Pfost/Newsday RM via Getty Images/Getty Images)
The members of the National Guard and Reserve may be eligible if they meet certain criteria, such as six years of service or 90 days of active duty, including at least 30 consecutive days of service under certain types of orders.
Veterans must have a copy of their discharge or separation papers (DD214), while active duty military personnel must obtain a statement of service from their commanding officer or personnel officer with details of their service and other personal information.
Surviving spouses of a veteran who died on active duty or suffered a service-connected disability may use the veteran’s discharge documents and obtain a separate process depending on whether they receive dependency compensation and dependency compensation.
A report from the National Association of Realtors (NAR) and Realtor.com found that eligible veterans and military personnel can shave four years off the time it takes to save for a home purchase by using the VA’s zero down payment program.
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The VA provides a range of benefits and services to veterans, service members, and surviving spouses. (Kevin Carter/Getty Images)
Researchers used data from NAR’s 2024 Home Buyers and Sellers Profile and found that 74% of new VA loan users put no down payment on their home purchase, compared to conventional loans first-time buyers had a median down payment of 12%.
Factoring in closing costs, a conventional buyer would need about $51,600 up front for a down payment on a typical $430,000 home that a VA loan buyer would not need, according to the report.
Based on an annual gross income of $78,700 and a savings rate of 15%, the study found that it would take approximately 4.4 years to accumulate the $51,600 amount for a down payment. A savings rate below 10% would extend the period to 6.6 years, while saving at a rate of 20% would shorten it to 3.3 years.
“The most notable benefit of a VA loan is the zero down payment but no added risk,” said Lawrence Yun, NAR chief economist. “The lower upfront cost makes homeownership more accessible, especially in high-cost markets and amid high mortgage rates, giving qualified buyers a crucial advantage and the opportunity to start building equity sooner.”
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The NAR and Realtor.com report found that VA loans are underutilized in some regions, particularly in more expensive metro areas like those in California and New York, where high prices, restrictions on using VA loans to purchase co-ops, and limited awareness contribute to the benefits remaining untapped.
Areas near major military bases, such as Virginia Beach, Virginia, and Colorado Springs, Colorado, showed the highest usage rates in the study.
