Tried and True: VA Home Loans Continue to Deliver for America’s Military Community

For eight decades, Department of Veterans Affairs (VA) Loan Guaranty Service (LGY) has supported our nation’s Veterans and active-duty Service members, as well as National Guard and Reserve members, in realizing their dreams of homeownership. Private lenders, such as banks and mortgage companies, provide VA home loans. VA guarantees a portion of the loan to the lender, which enables the lender to provide more favorable loan terms.

LGY’s program has become one of the most successful lending programs in real estate, supporting more than 28 million home buyers since 1944.(*FY23 data representative of purchase loans only) As with any program that has been in operation for 80 years, myths have emerged over time. Let’s tackle those myths and share some truths about VA home loans.

Myth #1: VA home loans are less competitive than conventional loans or other federal agency products.

Fact: VA home loans offer interest rates on par with other loan programs, with limited closing costs and no private mortgage insurance (PMI) requirement.

Myth #2: A VA home loan takes too long to close.

Fact: VA home loan closing times are competitive with conventional loans. In 2023, the average number of days required to close a loan: Conventional loan = 45 days, FHA loan = 46 days, VA home loan = 32 days (22 ICE Mortgage Technology20 23). Days to Close. https://www.icemortgagetechnology.com/.

Myth #3: VA home loan appraisals take longer and cost more than other programs.

Fact: Appraisal timelines and costs for VA home loans are comparable to other loan types. In 2023, VA appraisal timelines averaged seven business days. (33 VA Home Loan Program 2023). VA also evaluates appraisal fees to ensure they are competitive, and its appraisal program allows for use of external sources to reduce appraisal completion time.

Myth #4: Confirming a Veteran buyer’s eligibility for the VA home loan program is time consuming.

Fact: In most cases, a lender can obtain a Veteran buyer’s Certificate of Eligibility (COE) in just one day – compared to over 26 days in 2015.

It is easy to see why VA home loans are “A Key to Homeownership for Those Who Served.” If you are a Veteran, active duty Service member, National Guard or Reserve member, or a surviving spouse who wants to learn more about VA home loans, please speak with your real estate professional or call a VA home loan representative at 1-877-872-3702 or visit https://www.benefits.va.gov/homeloans/,