Financial planners roundly agree that purchasing a home is one of the most important transactions of your lifetime. It makes sense – a home is a major investment. The median price of a home in the United States in January 2026 was $423,261 (Redfin Housing Market). Importantly, the national average for a 30-year fixed mortgage was 6.1%.

Assuming an individual or family is purchasing a home at that price, the mortgage payments over those 30 years amount to the following per month, per year, and 30-year term, respectively:

• Estimated monthly principal & interest payment: ≈ $2,565
• Annual payment $2,565 × 12 months ≈ $30,780 per year
• Total paid over 30 years: $2,565 × 360 months ≈ $923,400 total paid over 30 years
• Total interest paid $923,400, total paid − $423,261, original loan ≈ $500,139 in interest.

These figures are important because they clearly illustrate the debt burden over the loan term. The interest component exceeds the home’s value at the time it was purchased. That’s precisely the reason why interest rates matter so much.

To the unassuming observer, an estimated monthly payment of $2565 may seem doable. Still, any change in a life circumstance – divorce, illness, unexpected expenses, death, disability, etc. can place significant pressure on homeowners.

Down Payments are Required for Most Home Buyers

Now for the nitty-gritty. Financing is sacrosanct. For most people, home purchases are accompanied by a down payment. There are several reasons for this. First of all, lenders will not front all of the funding for a mortgage without earnest money and a down payment on the property. All of these factors contribute to the cost of living for new homeowners.

Typically, a mortgage with less than a 20% down payment is associated with PMI (FHA loans have MIP, not PMI). In other words, these loans cost more every month. Private mortgage insurance is required. This adds a debt burden on top of the aforementioned payments.

However, not everybody is required to make a down payment on a primary residence purchase. For example, most veterans don’t have to pay a down payment when applying for a VA home loan but it may be required in certain cases. This is one of the main benefits available to military members and their families (surviving spouses) with a certificate of eligibility in hand.

A VA home loan offers veterans, service members, and eligible family members the opportunity to own a home with as few complexities as possible. These loans differ markedly from a traditional home loan offered to civilians. Recall, there is no down payment requirement. That frees veterans up by removing obstacles to homeownership.

The VA provides a loan guaranty that reduces lender risk and supports access to financing. The fact that the federal government is involved makes it easier for private lenders to write loans for clients. And the interest rates are comparable to, or better than, those for non-VA loans.

Below is a table that summarizes the benefits of VA vs. non-veteran home loans for the aforementioned example:

*P&I only; excludes taxes, insurance, HOA.

Why Do Veterans Get These Types of Benefits?

Veterans place service before themselves. They sign up to serve their country, and doing so is honorable and noteworthy. As appreciation for their service, the government, through the Department of Veterans Affairs and other state agencies, offers notable benefits to returning veterans.

A multitude of state–issued benefits are available, including various discounts, entitlements, tax breaks, financial incentives, and other forms of recognition for service. These veterans have already paid their dues, and society expresses its gratitude through a pathway to homeownership.

Home financing is always a big decision. Long-term borrowing is highly sensitive to interest rate fluctuations, stressing the importance of fixed or variable rate selection. For most civilian borrowers, some form of down payment is typically required. This often comes with private mortgage insurance and strict lending requirements. Excessive paperwork is the norm, with bank statements, pay slips, tax returns, and other documents required.

It’s different for eligible veterans, though. There is no mandatory down payment, and there is no PMI to worry about. Plus, there’s a federal guarantee behind the loan, which reduces many barriers to entry. Of course, there is always financial risk and responsibility with a VA loan. However, it’s a much more accessible pathway to homeownership.