What Veteran Benefit Can Help You With Your Housing Needs?

Every year, thousands of veterans miss out on a government program that could save them significant money when buying a home.

In 2024 alone, more than 58,000 VA home loans went unused, representing nearly $28 billion in untapped benefits.

A Valuable Benefit Many Don't Know About

The VA home loan program is one of the most powerful financial tools available to veterans, active service members, and certain surviving spouses. The Department of Veterans Affairs backs a portion of these loans, which allows lenders to offer much better terms than typical mortgages.

So why are so many people not using it? Experts believe many eligible veterans either don't realize they qualify or have outdated ideas about how the program works.

How the VA Loan Saves Money

The benefits of a VA home loan can add up to thousands of dollars in savings:

• No down payment required – Unlike most home loans, veterans don't need to save up a large lump sum to buy a house
• Lower interest rates – Borrowers typically get better rates than conventional loans offer
• No private mortgage insurance (PMI) – This alone can save hundreds of dollars each month
• Limited closing costs – Reduces the upfront expenses of buying a home

Another advantage: veterans can use this benefit multiple times throughout their lives. Whether you're buying your first home, relocating, or refinancing, the program remains available.

To get started, veterans typically need to obtain a Certificate of Eligibility, which confirms their access to the benefit.

New Program Helps Veterans Facing Foreclosure

For veterans who already have a VA-backed mortgage but are struggling to make payments, there's new help available. The VA recently launched a Partial Claim Program designed to prevent foreclosures.

Here's how it works:

1. Mortgage companies identify eligible borrowers who have fallen behind on payments
2. The borrower enters a three-month trial payment plan
3. If they complete the trial successfully, the overdue amount is paid off to bring the mortgage current
4. The veteran repays this amount later—when the home is sold, refinanced, or the loan is fully paid off

VA Secretary Doug Collins praised the program, saying it "will help keep thousands of Veterans in their homes."

It's important to note that this program doesn't erase missed payments entirely—it simply delays repayment. Veterans facing long-term financial difficulties may still need additional help, such as loan modifications.

The Bottom Line

Veterans who haven't explored their VA home loan eligibility could be leaving substantial money on the table.

For those already struggling with mortgage payments, reaching out to your loan servicer or the VA directly could help you avoid foreclosure and stay in your home.

-

Need help with your down payment? Find resources and assistance here!