How Much Do You Know About VA Loans?
Navy Federal’s “Spotlight on VA Loans” report uncovers misconceptions Active Duty and Veterans have about VA loans.
Bottom Line Up Front
- Most Active Duty and Veterans know about VA loans, but many don’t realize they don’t need a down paymentFootnote [1] and may be able to get low interest rates.
- Many eligible borrowers get VA loan info from scattered sources, and only a few use lender resources.
- Active Duty and Veterans, who work with trusted partners to get their VA loan, highly recommend the VA loan to their peers.
Time to Read
6 minutes
October 31, 2025
Spotlight on VA loans
Despite widespread awareness of VA loans among military families, new research reveals that many Active Duty and Veterans hold significant misconceptions about the benefits and features of these government-backed home loans.
Navy Federal Credit Union’s latest report, Spotlight on VA Loans, sheds light on the knowledge gaps and myths that continue to surround VA loans—despite their long-standing role in helping military families achieve homeownership. We surveyed over 1,000 Active Duty and Veterans from around the country to find out what they know about VA loans and what may be holding them back from using one.
Common misconceptions of VA loans
One of the most persistent misconceptions is that VA loans require a down payment. In fact, VA loans offer buyers the ability to finance up to 100% of the home’s sale price or the VA approved property value, whichever is lower. This could eliminate the need for a down payment. This feature is especially beneficial for younger Servicemembers and Veterans who may not have substantial savings but are ready to invest in a home and begin building equity.
Another misconception is that VA loan rates aren't competitive. In fact, VA loan often feature interest rates that are 0.25% lower than conventional loans,Footnote [2] thanks to the backing provided by the U.S. Department of Veterans Affairs. A greater proportion of Veterans (55%) than Active Duty personnel (44%) were familiar with the low interest rates offered by VA loans.
"VA loans are a powerful benefit earned through service, yet too many Active Duty and Veterans still don’t realize just how accessible and advantageous they truly are," said Davis. "We believe every military family deserves the opportunity to own a home with a great benefit that’s available to them."
Realtors can be a reliable resource for VA loan benefits
Realtors play a critical role in guiding military families through the home-buying process, and their understanding of VA loans can make a significant difference. Most military and Veteran homebuyers feel that Realtors have adequate knowledge of VA loans, but more than 1 in 4 believe it’s challenging to find a Realtor who truly understands the unique needs of military families.
Navy Federal works closely with many Realtors and offers specialized training, including Agent Continuing Education (CE). Through its RealtyPlus program,Footnote [3] Footnote [4] members can connect with agents who have additional training and experience working with military buyers. Many of these professionals have earned designations that reflect their expertise in VA loans and military relocation. This helps ensure that Active Duty and Veterans receive expert support throughout their home-buying journey.
Research methodology
The findings are based on an online survey conducted by Navy Federal Credit Union and Express Insights between May 12 and May 22, 2025. The survey included 1,017 Active Duty and Veteran respondents between the ages of 18 and 60.
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Explore your VA loan options
Ready to start your home-buying journey?
As a top VA lender,Footnote [5] we can help you take advantage of the benefits you’ve earned while serving your country. If you’re eligible for a VA home loan, you’ll have access to loan options with great rates, no-down-payment options and no Private Mortgage Insurance (PMI) required.
Plus, with our VA mortgage loan calculator, you can estimate how much your monthly payment could be, based on your home's purchase price and the terms of your loan.
Once you’re ready to get started, we can connect you with an experienced Realtor in your area through our RealtyPlus program.Footnote [3] Footnote [4]
Disclosures
100% financing subject to all VA rules, guidelines, and additional program requirements. All loans subject to approval. VA loans may include a funding fee, which may be financed up to the maximum allowed loan amount. Navy Federal has no affiliation with U.S. Department of Veterans Affairs or any other government agency.
↵The program is only available for individual home purchases/sales in the contiguous US, Alaska, and Hawaii, excluding Iowa and all employer-sponsored relocations. You are not required to receive financing through Navy Federal Credit Union in order to receive the benefits of this program. The cash back is only available with the purchase or sale of your home through the use of a program-referred and -approved real estate agent, and is offered in most states, with the exception of Iowa, Alaska, and Oklahoma, and is not available in certain transactions with restricted agent commissions (including many new constructions, For Sale by Owner, or For Sale by iBuyer transactions). Your assigned agent can help you identify any transactions where the cash back would not be available. The amount of your cash back depends on the value of the property you are buying or selling. Obtaining the full $9,000 cash back requires transacting in a property valued at $3 million or greater. To calculate your potential cash-back amount, please visit the RealtyPlus website: https://navyfederalrealtyplus.com/. The cash-back offer is limited to one cash back per property with no limit on the number of times you may use the program. In some states, a gift card or commission credit at closing may be provided in lieu of the cash back. In Kansas and Tennessee, a Mastercard® MAX gift card will be issued with preloaded points that are ready for spending at specified retail establishments after closing. State regulations in Kansas limit the dollar amounts and the type of incentive. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing in lieu of cash back. Please check with the program coordinator for details. All real estate commissions are negotiable. Contact RealtyPlus for terms and conditions. Seller listing fees apply. This program is offered, in part, by Anywhere Leads Inc., which may receive a co-operative brokerage fee as a result of a referral to any affiliated real estate companies, including Better Homes and Gardens® Real Estate, Coldwell Banker®, Century 21®, ERA® Real Estate, and Corcoran. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply. This is an advertisement and not a solicitation for agent representation if your property is currently listed with an agent. Anywhere Leads Inc., 175 Park Avenue, Madison, NJ 07940. Licensed broker in the state of Texas. Broker license #9009191.
↵In order to fully benefit from RealtyPlus services, you must be referred by RealtyPlus before contracting with a real estate agent and be represented by the assigned RealtyPlus real estate firm and agent at closing to qualify. Standard listing fees apply. Contact RealtyPlus for terms and conditions.
↵Navy Federal Credit Union was a top 10 VA Lender by overall volume and total loan amount in 2025 by VA.
↵This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.