Less Cash, More Flexibility: VA Loans Can Help Veterans Become Homeowners About Four Years Sooner

Realtor.com published research suggesting eligible veterans can become homeowners about four years sooner by using zero-down VA home loans.

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Realtor.com published research suggesting eligible veterans can become homeowners about four years sooner by using zero-down VA home loans. The estimate compares a 0% down VA loan with a conforming loan requiring 10% down on a $419,250 home, assuming first-time buyers save 10%-15% of household income.

From October 2025 through September 2026, 75.7% of home sales using VA loans required no down payment. Average 30-year fixed mortgage rates were 5.81% for VA loans versus 6.22% for conforming loans. In the home-price example, estimated monthly payments were $2,668 with zero-down VA financing versus $2,648 with 10% down conforming financing. A Veterans United survey found only about three in 10 veterans knew about the zero-down benefit. The research accompanies the 2026 Mission Zero campaign, which launches November 11.

Key Figures

VA home sales with 0% down: 75.7% Down payments below 10%: 86.1% VA; 41.1% conforming Average down payment: 4.3% VA; 19.1% conforming +5 more

VA home sales with 0% down

75.7%

Home sales using VA loans over the past 12 months

Down payments below 10%

86.1% VA; 41.1% conforming

Home sales over the past 12 months

Average down payment

4.3% VA; 19.1% conforming

Home sales over the past 12 months

Average 30-year fixed mortgage rate

5.81% VA; 6.22% conforming

October 2025 through September 2026

September 2026 mortgage rate

6.36% VA; 6.91% conforming

September 2026

Estimated monthly payment difference

$261 less

VA versus conforming loan, each with 10% down on a $419,250 home

Down payment avoided

$41,925

0% down VA loan versus 10% down conforming loan on a $419,250 home

Recent borrowers with Fair credit scores

24.3% VA; 4.8% conforming

Credit scores between 580 and 669

Key Terms

conforming loan, private mortgage insurance, va funding fee

3 terms

conforming loan financial

"saving for a typical conforming loan's 10% down payment."

A conforming loan is a mortgage that meets the underwriting rules and maximum size set by the government-sponsored enterprises Fannie Mae and Freddie Mac, so those agencies can buy it on the secondary market. Conforming status requires the loan to satisfy specific criteria for loan amount (the conforming loan limit, which is set annually and can vary by area), borrower credit and income documentation, property type, and loan-to-value and debt-to-income ratios; loans that exceed those rules are known as jumbo or nonconforming loans.

private mortgage insurance financial

"VA loans also do not require private mortgage insurance"

Private mortgage insurance (PMI) is a policy a borrower pays for when their down payment is small; it protects the lender against loss if the borrower stops paying the loan. Think of it as a lender’s safety net that raises the effective cost of borrowing for the homeowner while reducing the lender’s credit risk. For investors, PMI affects mortgage profit margins, loan default exposure, and the value of mortgage-backed securities tied to those loans.

va funding fee financial

"The VA funding fee can range from 0.5% to 3.3%"

A VA funding fee is a one-time charge assessed by the U.S. Department of Veterans Affairs on most VA-guaranteed home loans to help fund the loan program; it is calculated as a percentage of the loan amount according to factors such as the borrower’s military service category, whether it is the borrower’s first use of a VA loan, the size of any down payment, and the loan type. The fee can be paid in cash at closing or rolled into the loan balance, is nonrefundable once paid, and certain borrowers—most notably veterans with qualifying service-connected disabilities and some surviving spouses—are exempt from paying it.

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Realtor.com^® survey data shows down payments and credit remain major barriers to homeownership, while a Veterans United survey finds only about three in 10 veterans know about the zero-down benefit

AUSTIN, Texas, Nov. 10, 2026 /PRNewswire/ -- Ahead of Veterans Day, new research from Realtor.com^® highlights how a benefit earned through service to our country can help veterans buy homes and build equity. With a 0% down VA loan, eligible veterans and active-duty service members can become homeowners about four years sooner than buyers saving for a typical conforming loan's 10% down payment.

Realtor.com^® online survey data shows that about one-third of first-time buyers say not having enough money for a down payment makes buying a home challenging, while about one in five say a low credit score makes buying difficult. At the same time, a Veterans United Home Loans survey found that only about three in 10 veterans are aware that VA loans can be used with no down payment.

Over the past 12 months, 75.7% of home sales using VA loans had a 0% down payment, while 86.1% had a down payment below 10%. By comparison, just 41.1% of home sales using conforming loans had a down payment below 10%. The average down payment was 4.3% for VA loans, compared with 19.1% for conforming loans.

"VA loans can change the math of buying a home for eligible veterans and service members," said Jiayi Xu, senior economist at Realtor.com^®. "The advantage goes beyond buying with no down payment. Lower mortgage rates and more flexible credit criteria can also put homeownership within reach for buyers who might otherwise struggle to qualify. Making sure veterans understand these benefits is an important first step."

On a typical $419,250 home, a 0% down VA borrower would avoid bringing $41,925 to the closing table compared with a buyer putting 10% down with a conforming loan. That upfront savings can shorten the time it takes to build enough cash for a purchase by about four years for a first-time buyer. The VA borrower's estimated monthly payment is nearly the same as the conforming borrower's payment, even before accounting for the value of having those savings available sooner.

VA Loans Can Lower Monthly Payments in a High-Rate Market

VA loans can help borrowers beyond the down payment. From October 2025 through September 2026, the average 30-year fixed mortgage rate was 5.81% for VA loans, compared with 6.22% for conforming loans. In September 2026, the average rate was 6.36% for VA loans and 6.91% for conforming loans.

Using the example above, a buyer purchasing a $419,250 home using a VA loan with 10% down would have an estimated monthly payment of $2,387, or $261 less per month than a conforming-loan buyer putting 10% down. That amounts to more than $3,100 in estimated annual savings. A 0% down VA loan would have an estimated monthly payment of $2,668, about $20 more than a conforming loan with 10% down, while allowing the VA borrower to keep $41,925 that would otherwise go toward the down payment.

VA loans also do not require private mortgage insurance, although borrowers may owe a VA funding fee depending on factors such as military status, loan purpose and down payment. Funding fees may be rolled into the loan balance.

VA Loan Savings on a Typical-Media Home in the U.S.

Sept. Median Listing Price	Loan Type	Down Payment  (%)	Sept. Mortgage Rate	Mortgage Insurance/Fees	Monthly Payment	Monthly Savings vs. Conforming
$419,250	Conforming	10 %	6.91	PMI	$2,648
$419,250	VA	0 %	6.36	VA Funding Fees	$2,668	-$20
$419,250	VA	10 %	6.39	VA Funding Fees	$2,387	$261

Sources: Realtor.com Housing Trends, Optimal Blue, Freddie Mac, Veterans United, Realtor.com Calculations

VA Borrowers Are More Likely to Qualify With Fair Credit Scores

VA loans can also provide flexibility for borrowers who may not have excellent credit. Nearly one in four recent VA borrowers, or 24.3%, had a Fair credit score between 580 and 669. That compares with 4.8% of recent conforming-loan borrowers.

Across every credit-score grouping, VA borrowers made lower down payments as a share of the purchase price than conforming-loan borrowers. This flexibility can be especially important for younger and first-time buyers who may not yet have accumulated significant savings or built a strong credit history.

Awareness Remains a Key Barrier to Using the VA Loan Benefit

Despite the program's advantages, awareness and misconceptions remain a key barrier to using the VA loan benefit underscoring the need to make the program's core advantages clearer to eligible households.

"The VA loan is one of the most powerful homebuying tools available, but knowing what you've earned and what it can do for you are two different things. That's the education gap we're working to close with Mission Zero." said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. The biggest benefit of VA loans has been there from the beginning – the ability to buy with 0% down. But too many veterans still don't know that's possible. We have to continue to challenge homebuying misconceptions, close the education gap and make sure veterans and service members understand what their hard-earned homebuying benefit truly offers." 

This report is part of the Mission Zero campaign, launched in 2023 by Realtor.com^® in partnership with Veterans United Home Loans, to ensure every veteran knows about and can use their VA home loan benefit. The 2026 Mission Zero campaign launches Nov. 11. Participants include Realtor.com^®, Veterans United Home Loans, The Home Depot, National Association of REALTORS^®, The Wall Street Journal, The New York Post, Homes For Our Troops and VFW (Veterans of Foreign Wars).

More information about VA loans is available at realtor.com/veterans. The Veterans & Military Benefits section on Realtor.com^® for-sale listings also includes information about this benefit.

Methodology
This analysis uses mortgage data from Optimal Blue and focuses on 30-year fixed-rate loans used to purchase primary residences between October 2025 and September 2026. Mortgage rates, loan types, down payments, credit scores and VA loan share are compared with conforming loans originated during the same period.

Credit scores are classified as Poor (300–579), Fair (580–669), Good (670–739), Very good (740–799) and Exceptional (800+). The VA funding fee can range from 0.5% to 3.3%, depending on factors including military status, loan purpose and down payment. Monthly payment estimates include principal, interest, mortgage insurance or applicable fees.

The time-to-homeownership comparison uses a September 2026 median listing price of $419,250 and compares a 0% down VA loan with a 10% down conforming loan. The report assumes a 10%-15% household savings rate for first-time buyers and uses a 0.51% PMI assumption for the conforming-loan comparison.

About Realtor.com^®
For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR^® agents recommend, Realtor.com^® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

About Veterans United Home Loans
Veterans United Home Loans, a full-service national direct lender based in Columbia, Missouri, closed more than $26 billion in loans in fiscal 2025 and was the nation's No. 1 VA purchase lender, according to Department of Veterans Affairs Lender Statistics. The company's mission is to help Veterans and service members take advantage of the home loan benefits earned by their service.

VeteransUnited.com | 1-800-884-5560 | 550 Veterans United Drive, Columbia, MO 65201 | Veterans United Home Loans NMLS #1907 (www.nmlsconsumeraccess.org). Private lender. Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Licensed in all 50 states. Military advisors are paid employees of Veterans United. For State Licensing information, please visit www.veteransunited.com/licenses. Equal Housing Opportunity.

Media Contact: Janice McDill, press@realtor.com

 

View original content:https://www.prnewswire.com/news-releases/less-cash-more-flexibility-va-loans-can-help-veterans-become-homeowners-about-four-years-sooner-302933898.html

SOURCE Realtor.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What assumptions underpin Realtor.com's four-year VA loan homebuying estimate?

The estimate assumes a 10%-15% household savings rate for first-time buyers and compares zero-down VA financing with a 10% down conforming loan. It uses September 2026's median listing price of $419,250 and a 0.51% private mortgage insurance assumption for the conforming loan.

Do the VA loans in Realtor.com's analysis have mortgage insurance or funding fees?

VA loans do not require private mortgage insurance, but borrowers may owe a funding fee ranging from 0.5% to 3.3%. The fee depends on factors including military status, loan purpose and down payment, and may be rolled into the loan balance. Monthly payment estimates include principal, interest, mortgage insurance or applicable fees.