With the arrival 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.
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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.
