A smiling male military veteran in a camouflage uniform sits on a grey couch, holding his young daughter who wears his military cap. His smiling wife sits next to them, wrapping her arm around his shoulder. An American flag is visible blurred in the background.

A recent survey by NewDay USA revealed a striking statistic: 49% of Veterans believe owning a home is completely out of reach in today’s market. But here is the good news—many are much closer than they realize, and you might be too. While the VA home loan benefit has been helping service members buy homes for over 80 years, widespread confusion about what it actually offers still keeps buyers on the sidelines. As you can see in the chart below, these three major misconceptions are the biggest roadblocks holding Veterans back today.

An infographic titled "Most Veterans Don’t Know All the VA Home Loan Benefits" featuring three orange donut charts on a dark blue background. The charts show that 68% aren't aware they may buy with zero down payment, 77% don't know private mortgage insurance (PMI) isn't usually required, and 58% don't realize that Basic Allowance for Housing (BAH) may count as income. The source is noted as NewDay USA.

1. Can You Buy a House With a $0 Down Payment VA Loan?

The potential to purchase a home with zero money down is the most significant financial advantage of a VA loan, yet many eligible buyers miss it. According to the NewDay USA survey, the average Veteran incorrectly assumes they need to save between $10,000 and $19,900 for a down payment. In reality, a VA-backed mortgage eliminates this massive upfront financial barrier entirely, saving you years of strict budgeting.

2. How Do VA Loan Closing Costs Work?

According to guidelines from the Department of Veterans Affairs, there are strict limits on the types of closing fees a buyer can be charged. These VA loan closing cost exemptions mean you keep more cash in your pocket on closing day. When you combine reduced closing fees with the $0 down payment perk, your timeline to buy a home shrinks dramatically.

3. Do VA Loans Require Private Mortgage Insurance (PMI)?

Unlike conventional mortgages, VA loans do not require monthly Private Mortgage Insurance (PMI), even if you put zero money down. With a conventional loan, you typically pay an extra $100 to $300 per month in PMI until you build 20% home equity. Eliminating this requirement saves Veterans thousands of dollars over the life of the loan and lowers your monthly mortgage payment.

4. Can You Use BAH and BAS Income to Qualify for a VA Loan?

If you are an active-duty service member or a qualifying reservist, your Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) count as verifiable income toward your mortgage qualification. Because BAH and BAS are non-taxable allowances, lenders can “gross up” this income, which significantly increases your purchasing power and helps you qualify for a larger loan amount than you might expect.

Bottom Line: Is a VA Home Loan Right for You?

The VA home loan benefit is designed to put homeownership within reach for the military community. If you are currently serving, are a Veteran, or are a surviving spouse, you could be in a position to buy a home much sooner than you think.

To maximize these perks, connect with a trusted, VA-approved local lender in Grant County who can verify your Certificate of Eligibility (COE) and guide you through the qualification process.