Veteran’s Guide to Saving on Housing Costs

Veterans and military families have access to home-buying advantages that aren’t available to most civilians. In 2025, the VA home loan program offers $0 down for qualified borrowers, no monthly PMI, capped fees, and specialized refinance options. VA disability housing grants are indexed annually to reflect construction costs, and national providers continue to offer military‑only discounts on home services. Below, we show where to save the most—from loan rates and closing‑cost rules to adaptation grants, refi options, and everyday discounts—using current VA and federal guidance.

Save With a VA Loan

The VA (Department of Veterans Affairs) home loan benefit helps eligible borrowers finance a primary residence with competitive terms. While private lenders set VA rates, VA loans typically price modestly below comparable conventional loans due to the federal guaranty and Ginnie Mae execution. For a current market benchmark, check the Freddie Mac PMMS, then collect same‑day quotes (rate and APR) from several VA lenders to compare at the same points level. VA loans also eliminate monthly PMI and cap certain fees/seller concessions, which can lower total monthly cost relative to conventional/FHA for similar borrowers (VA overview).

VA Loan FAQ

What is a VA loan?

A VA‑backed home loan is an earned benefit for eligible service members, Veterans, and some surviving spouses. The VA guarantees part of the loan, which reduces lender risk; lenders, not VA, set your interest rate (the exception is the VA’s Native American Direct Loan, which has a program‑set fixed rate). Core features include $0 down (with sufficient entitlement), no monthly mortgage insurance, consumer protections on fees, and assumability with approval (VA overview).

Because VA loans carry a federal guaranty, lenders often offer flexible underwriting and competitive pricing. You must intend to occupy the property as your primary residence, generally within a short window after closing (certain spouse/deployment exceptions apply) (VA overview).

What are the perks of a VA loan?

$0 down with full entitlement. Qualified borrowers can finance 100% of the home’s value when the price doesn’t exceed the appraised value. With full entitlement, there’s no VA‑imposed loan limit; lenders underwrite to credit, residual income, and property value (VA loan limits).
Reusable benefit, even for your next home. You can use VA again after restoring entitlement. If some entitlement remains tied up, county FHFA conforming loan limits govern how much you can borrow without a down payment (VA loan limits).
Lower monthly cost versus many alternatives. VA loans typically price competitively—and often lower—than comparable conventional loans, and they have no monthly PMI. Sellers can contribute normal closing costs plus concessions up to 4% of the loan amount (e.g., funding fee, prepaid taxes/insurance, certain buydowns) (VA closing costs & 4% cap).
Assumability and refi flexibility. Qualified buyers can assume VA loans (with lender/VA approval), and existing VA borrowers can use the IRRRL “streamline” refi—often without a new appraisal or income underwriting—to lower their rate/payment when market rates improve (IRRRL).

Am I eligible for a VA loan?

Eligibility is based on your service dates, component, discharge, and entitlement—verified via a Certificate of Eligibility (COE). General pathways include: Veterans/active duty with required minimum service by era; Guard/Reserve with 6 years in the Selected Reserve/Guard; or Guard/Reserve with qualifying active service under Title 10 or qualifying Title 32 (at least 90 total days including 30 consecutive days under specified sections). Qualifying surviving spouses may also be eligible (VA eligibility).
For those who first entered active duty after certain dates, VA generally requires 24 continuous months or the full called period (with statutory exceptions). Title 32 service can qualify if it meets VA’s 90‑day/30‑consecutive‑day criteria; see current rules and exceptions (Lenders Handbook) and (VA eligibility).
Surviving spouses may qualify in several categories (e.g., death in service or from a service‑connected disability; certain MIA/POW cases; or spouse of a Veteran who was totally disabled at death). Review current categories and documentation steps (VA surviving spouses).
Lenders will also evaluate income, credit, debt‑to‑income, and VA residual income to approve your loan.

How does a VA loan work?

Here’s a concise path to getting a VA loan—plus key 2025 rules to keep you competitive in today’s market:

1. Prove you’re able to apply by obtaining a Certificate of Eligibility (COE).

Veterans typically use their DD‑214 to obtain a COE; many lenders can pull the COE electronically. Guard/Reserve may need NGB‑22/23 or orders showing qualifying Title 10/Title 32 service. Eligible surviving spouses can apply with VA Form 26‑1817. Start with VA’s current eligibility guidance and COE process COE.

Rob Greenbaum is the VP of AAFMAA Mortgage Services, which exclusively serves military and veteran home buyers. Greenbaum suggests you “ask your loan officer early in the process what documentation is required to ensure you have time to access everything – you don’t want to be delayed in the approval process because of paperwork issues.”

“You can identify ways to cut costs by comparing multiple lenders early on in the process – look at the terms, rates, discount points, and closing costs.”
Rob Greenbaum
VP, AAFMAA Mortgage Services

2. Choose a VA-approved lender.

This is a personal choice based on your profile and preferences. There’s no one master list—so shop 3–5 lenders the same day and compare rate, APR, points/credits, lock term, and lender fees. Use our research on the best mortgage lenders to start your quote stack, and benchmark overall market levels on the Freddie Mac PMMS. Ask for 0‑point and 1‑point quotes and estimate your breakeven if buying points.

When it comes to evaluating your options, Greenbaum also recommends “you can identify ways to cut costs by comparing multiple lenders early on in the process – look at the terms, rates, discount points, and closing costs. This will help you determine who has the best loan for you and who has experience handling VA loans and serving the military community. And don’t be afraid to ask your lender if certain fees can be waived due to your veteran status or other factors.”

3. Get a Realtor and go house hunting.

Find a military-friendly Realtor who understands VA appraisals and Minimum Property Requirements. In 2024, VA issued a temporary policy allowing VA buyers to pay buyer‑broker commissions where necessary, helping VA borrowers stay competitive as commission practices evolve—confirm current status with your agent and lender (VA Circular 26‑24‑14).

4. Sign your purchase agreement.

Include a VA Option Clause to protect earnest money. Your lender will order a VA appraisal; sellers can pay customary closing costs and may provide concessions up to 4% of the loan amount (e.g., funding fee, prepaid taxes/insurance, payoff of certain debts, buydowns) (VA closing costs & concessions).

5. Close on your loan.

Verify your funding‑fee status early so exemptions appear correctly on your Loan Estimate/Closing Disclosure. VA allows lenders to charge either a flat 1% origination fee or itemize allowable fees—not both. There are also limits on certain charges and no prepayment penalties. Bring proof of homeowners insurance for closing (VA closing‑cost rules).

Other Options for Savings

Beyond standard VA purchase loans, several VA programs and grants can reduce costs or expand access depending on your situation.

Options for Native Americans

If you’re a Native American Veteran, the VA’s Native American Direct Loan (NADL) is a direct loan from VA (not a private lender) to buy, build, or improve a home on Federal Trust Land; the program carries a VA‑set fixed interest rate posted by VA and subject to change administratively. See program details on VA’s page (NADL), and make sure your tribe has an MOU with VA (required for lending on trust land)—you can easily check if your tribe has a MOU.

Options for Disabled Veterans

VA disability housing grants can fund accessibility features so you can live more independently. Maximum grant amounts are indexed annually each fiscal year (effective October 1), and SAH can be used multiple times up to a lifetime cap. Confirm the current 2025 maximums on VA’s page and plan your project sequence with your lender and contractor (VA disability housing grants: SAH, SHA, TRA).

Specially Adapted Housing Grant (SAH)

SAH grants can help you build or modify a permanent home for certain severe service‑connected disabilities. SAH amounts adjust annually and can be used multiple times up to the lifetime cap to address changes in your needs and construction costs.

Special Housing Adaptation Grant (SHA)

Similar to SAH, a SHA grant can fund adaptations for other qualifying disabilities, including modifying an existing home, a new purchase, or an already‑adapted property. Consider pairing SAH/SHA with a Temporary Residence Adaptation (TRA) if you’re living with a family member during renovations.

Army E-3 Veteran Clay Hudson is a mortgage loan originator with Planet Home Lending, who vouches for the VA loan’s success when it comes to upgrading your home: “You can buy a home that needs a little TLC with 100% financing and zero down and get $35,000 to make upgrades. It lets you create your dream home all in one loan. The program is also great for veterans with disabilities who need to adapt their homes.”

“The [VA loan] program is also great for veterans with disabilities who need to adapt their homes.”
Army E-3 Veteran Clay Hudson
Mortgage Loan Originator with Planet Home Lending

Be Aware of Home-Buying Fees

VA limits what you can be charged at closing and caps seller concessions—rules that can save you money. Lenders may charge either a flat 1% origination fee or itemize allowable fees (not both). Normal discount points and customary closing costs are treated separately from the 4% seller‑concession cap VA loan for your home purchase.

Be aware of these non-allowable VA loan fees:

Attorney fees
Brokerage fees
Prepayment penalties
HUD/FHA inspection fees for builders

Your lender’s fee should cover a variety of fees and expenses with the VA loan. Major fees and expenses include:

Lender appraisals
Lender inspections
Closing or settlement fees (VA closing costs are limited)
Application and processing fees
Document preparation
Escrow fees

The allowable VA loan expenses you may be obligated to pay include:

Appraisal and compliance inspections
Recording fees
Credit report charges
Hazard insurance (such as flood insurance)
Flood zone determination (if not made by the lender or VA appraiser)
Survey fees
Title examination and title insurance
Mailing fees (for refinancing)
MERS fee
VA funding fee

What is the VA Funding Fee?

The VA funding fee helps keep the program self‑sustaining so taxpayers don’t subsidize defaults. Most borrowers pay a one‑time fee that can be financed into the loan amount; sellers may cover it as a concession (counts toward the 4% cap). Many borrowers are exempt—such as Veterans receiving VA compensation for a service‑connected disability, certain surviving spouses, and active‑duty servicemembers with a Purple Heart at or before closing. See the full fee schedule and exemptions on VA’s official page (VA loan fees).

Current schedule for loans closing now (applies to most loans closed on/after April 7, 2023 and before November 15, 2031): Purchases/construction—first use 2.15% with 0% down (1.50% with 5%–9.99% down; 1.25% with ≥10% down); subsequent use 3.30% with 0% down (or 1.50%/1.25% with ≥5% down). Cash‑out refinance: 2.15% (first use) or 3.30% (subsequent). IRRRL (VA streamline): 0.50%. VA loan assumptions: 0.50%. Exempt borrowers pay 0% and may be eligible for a refund if later awarded disability compensation effective before closing (38 U.S.C. §3729) (VA loan fees) (VA Circular 26‑23‑06).

“Don’t be shy to ask if a service provider offers a military discount because most do. The same goes with asking for seller concessions.”
Army Staff Sgt. Daniel Bautista
Personal Finance Specialist at Money Done Right

Save More on Home Services

Stack savings beyond the mortgage with national military discounts on internet, security, moving/storage, lawn care, and pest control. Examples available in 2025 include: Verizon Home Internet (Fios or 5G Home) with up to $15/month off for military/veterans (Verizon); ADT’s military program with exclusive incentives for new monitored systems (ADT); SimpliSafe equipment discounts commonly 30%–40% via ID.me (SimpliSafe); PODS 10% off moving/storage (PODS); Penske Truck Rental 15% off personal rentals (Penske); TruGreen 10% off lawn plans (TruGreen); and Terminix military discounts (often ~10%) on new plans (Terminix). Verify eligibility (often via ID.me), check stackability with promos, and capture a dated quote.

According to Army Staff Sgt. Daniel Bautista, who works as a personal finance specialist at Money Done Right, getting discounts and savings is just a matter of asking: “Don’t be shy to ask if a service provider offers a military discount because most do. The same goes with asking for seller concessions.”

Bautista also had success in comparing rates with USAA: “I called at least 15 different companies and asked if they can beat the competitors’ rates … I have USAA and they are a little pricey when you have one product. If you have multiple products with them, you get a substantial discount.” Although we strongly recommend a thorough analysis of all your homeowners insurance options when it comes to home insurance, USAA remains a leading option for eligible military families thanks to its military‑only membership and consistently strong satisfaction performance (J.D. Power typically profiles but doesn’t rank USAA due to membership rules) (J.D. Power 2024) (USAA). Also consider Armed Forces Insurance (AFI) and Navy Federal Insurance Services for access to partner carriers (Navy Federal).

You may find savings with military discounts for a home warranty and can even try to negotiate that expense as a seller obligation to pay if you decide you need a home warranty. You can also compound your savings on home insurance when you install a home security system that offers a discount for adding that protection. Check out our 10 top picks for home security and be sure to ask about specific military discounts as you get quotes for service.

Save After You Move

Keep saving once you’re in the home. Cross‑shop homeowners insurance (USAA, AFI, and large national carriers), and plan for risk add‑ons like flood coverage if you’re in or near a Special Flood Hazard Area—standard homeowners insurance doesn’t cover flood; consider NFIP or private flood options (FloodSmart.gov). If you’ll reuse VA soon, protect your entitlement by ensuring a buyer assuming your VA loan substitutes entitlement when possible, and revisit refinancing via IRRRL if rates fall (IRRRL typically waives appraisal and income underwriting, requires prior occupancy, and charges a 0.5% funding fee).

Before your next offer, confirm your entitlement status and how county loan limits would apply if you have only partial entitlement left—VA has no loan limit with full entitlement, but when some entitlement remains tied up, the local FHFA conforming loan limit determines how much you can borrow with $0 down. For rate context, use the Freddie Mac PMMS as your benchmark and compare same‑day VA and conventional quotes side‑by‑side; VA loans are frequently at least competitive and often lower once you factor in no PMI (VA overview).