VA Loan Eligibility & Awareness
Servicemembers seem confident in their awareness of VA loans. 95% of servicemembers are aware of what a VA loan is; however, about a quarter of Active Duty (27%) and veterans (25%) who have used a mortgage haven't used a VA loan. When asked why they chose not to get a VA loan, both current and former servicemembers claim they didn’t know about VA loans (15%).
And, among those aware of VA loans, most indicate they're familiar with the benefits of a VA loan when it comes to purchasing a home.
Myths Control Many
While most veterans know not to believe the common myths about VA loans, Active Duty servicemembers are likely to hold one or more major misconceptions that discourage the use of VA loans. These attitudes can worry military families into forgoing their hard-earned benefits.
VA loans don’t require any down payment, but few servicemembers seem to realize this massive benefit is available to them.
Only about a third (32%) of veteran respondents and just about a tenth (12%) of Active Duty respondents believe no down payment is needed for a VA mortgage loan.
When asked the percentage needed for a VA loan down payment, Active Duty soldiers’ mean answer was 28.2%, and veterans’ mean answer was 12.1%.
One of the things we hear most often from those skeptical of VA loans is that they’re too cumbersome to obtain. While this isn’t borne out in the data we have about processing times and closing periods, it’s still a real worry among servicemembers.