va home loan program unused: 5 Things You Need to Know About This Unclaimed $1 Trillion Benefit
- The VA home loan program is not just for active duty or veterans with perfect credit. It’s one of the most powerful housing tools in America, yet most eligible borrowers never use it.
- The program offers 0% down payment, no private mortgage insurance (MI), and relaxed credit guidelines compared to conventional loans. This saves the average veteran over $1,100 per year in PMI costs alone.
- Over 1.5 million veterans own homes with a conventional loan that they could potentially refinance into a VA loan to lower their monthly payment or eliminate PMI—but they don’t know the option exists.
- The biggest myth is that using the VA loan once is a one-time use. In reality, many veterans can reuse the benefit multiple times, as long as the previous loan has been paid off or is assumed by a qualified buyer.
- A new change in 2023 allows eligible veterans to buy a second home with a VA loan even if they still have an existing VA loan on their primary residence, as long as the new loan is for a subsequent purchase and the first home is being rented out.