Homebuying Guide and Housing Support for Veterans

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By Nathan Paulus
Edited by Victoria Copans

Updated: December 4, 2024

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U.S. Army soldier in uniform stands with his arm around a woman in front of a house.

Veterans have access to valuable support to help them find a place to call home after military service. The VA offers a range of resources for service members and veterans, but many additional programs — through state, local and nonprofit organizations — can also help ease the financial burden of homeownership. Understanding the housing support you're eligible for, starting with a VA loan or other mortgage options, and tapping into grants for service-related disabilities can make the journey to homeownership more affordable and accessible.

Key Takeaways

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VA loans offer no down payment, no private mortgage insurance (PMI) and lower interest rates, making them one of the most affordable options for veterans.

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Veterans need a Certificate of Eligibility (COE) to secure a VA loan, so have documents like DD Form 214 or a service statement ready.

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Many states and nonprofits offer additional down payment assistance, adaptive housing grants or emergency support tailored to veterans.

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Veterans who don’t qualify for VA loans may find suitable alternatives in USDA, FHA or conventional loans.

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Local VA offices can connect veterans to resources like foreclosure prevention, legal help and emergency housing.

Understand Your Housing Benefits as a Veteran

The U.S. Department of Veterans Affairs (VA) offers valuable support, including no-down-payment VA home loans, housing grants for service-related disabilities and rental assistance for veterans in need. Veterans also have access to resources that can help prevent homelessness or provide emergency housing support during a housing crisis. Identifying these benefits early on can help veterans make the most of their options and reduce the financial strain of buying a home.

  1. 1

    VA Mortgage Program

    The VA mortgage program allows veterans and service members to buy a home with no down payment. VA mortgages generally have more favorable interest rates and more flexible qualification requirements than traditional mortgages, often making them an affordable option.

  2. 2

    Down Payment Assistance Programs

    States offer an array of housing-related benefits to eligible active-duty personnel and veterans. Down payment assistance programs are a strong option for first-time homebuyers.

  3. 3

    Emergency Assistance Programs

    All branches of the military offer emergency housing assistance. Many nonprofits, such as Army Emergency Relief, have also stepped up to provide mortgage or rental relief or temporary housing.

  4. 4

    Adaptive Housing Assistance Grants

    The federal government offers grants to help make homes more accessible for disabled vets. Several nonprofits, like the Gary Sinise Foundation, also offer funding for home adaptations.

  5. 5

    Foreclosure Prevention

    If you're having trouble paying your mortgage, there are various foreclosure prevention options, most of which will derive from the VA. VA loan centers are staffed with counselors to help you work through solutions, and you don't need a VA loan to qualify.

Buy a Home With a VA Loan

If you don't qualify for a conventional loan or need more affordable options, a VA loan can be a valuable benefit. A VA loan is a home loan program offered through the U.S. Department of Veterans Affairs, designed exclusively for veterans, active-duty service members and certain eligible family members. While the VA doesn't lend money to homebuyers, it guarantees loans from private lenders to eligible borrowers.

Below are some of the primary features that can make VA loans an appealing option for veterans.

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    Zero Down Payment

    VA loans don't require a down payment, which can lower the initial cost of buying a home.

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    No Private Mortgage Insurance (PMI)

    PMI is typically required for conventional loans with a low down payment, but VA loans don't require it, which helps reduce monthly costs.

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    Competitive Interest Rates

    VA loans often offer lower interest rates than conventional loans, generally ranging from 0.5% to 1% lower.

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    Flexible Credit Requirements

    Lower credit scores may still qualify for a VA loan.

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    Higher Debt-to-Income Ratios Accepted

    VA loans allow for higher debt-to-income ratios (DTI), which measure the percentage of a borrower's monthly income that goes toward paying debts.

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    Limited Closing Costs

    The VA places limits on closing costs with VA loans.

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    Streamlined Refinancing Options

    VA loans include refinancing options, such as the VA Interest Rate Reduction Refinance Loan (IRRRL), with minimal required documentation.

How to Qualify for a VA Loan

To qualify for a VA loan, veterans need to first obtain a Certificate of Eligibility (COE) from the VA, which confirms eligibility for the loan program. Veterans, service members or qualifying family members can receive a COE if they meet at least one of the following requirements:

  • Have served the required minimum active-duty period during wartime or peacetime, depending on your service dates
  • Are a member of the National Guard or Reserves with at least six years of service or active duty
  • Are an active-duty service member with sufficient service time
  • Are the surviving spouse of a veteran who died in service or due to a service-related disability

Veterans and eligible family members can request a COE through a VA-approved lender, online at VA.gov or by downloading the application form from the VA's website. Supporting documents will be needed, so ensure you have the appropriate paperwork ready.

Required Supporting Documents for COE
Service Status
Required Documents

Veterans

DD Form 214 (discharge or separation papers)

Active-Duty Service Members

Statement of service signed by your commander or personnel officer

National Guard/Reserves

NGB Form 22 (Report of Separation) and NGB Form 23 (Retirement Points)

Surviving Spouses

Veteran’s DD Form 214, marriage certificate and VA Form 21P-534EZ

Steps for Purchasing a Home Using a VA Loan

Once you've confirmed your eligibility and received your Certificate of Eligibility (COE), you can start the homebuying process with a VA loan. Follow these steps to move forward:

  1. 1

    Get Prequalified With a VA-Approved Lender

    Start by connecting with a VA-approved lender who will help you understand how much you may qualify for based on your financial profile. Prequalification is a preliminary step that gives you a general estimate of your purchasing power.

  2. 2

    Find the Right Home Within Your Budget

    With your prequalification in hand, start your home search based on the price range identified. VA loans come with certain property requirements, so work with a real estate agent familiar with VA-approved properties to ensure your prospective home meets VA standards.

  3. 3

    Make an Offer and Enter the Contract

    Once you find a home that fits your needs, make an offer. Your real estate agent can guide you through the negotiation process and help you submit a formal purchase offer. Once accepted, you'll enter into a purchase agreement with the seller.

  4. 4

    Complete the VA Home Appraisal

    VA loans require a VA appraisal to determine the home's market value and verify it meets the VA's property standards. The appraisal ensures you're not overpaying and the home is safe and structurally sound. Your lender will arrange the VA appraisal as part of the process.

  5. 5

    Finalize Your Loan Approval

    After the appraisal, your lender will complete a thorough review of your financial information, including income, assets and credit. This step, known as underwriting, verifies that all qualifications are met for final loan approval.

  6. 6

    Close on Your Home

    Once your loan is approved, you're ready to close! During the closing process, you'll review and sign the final documents, pay any required closing costs and receive the keys to your new home. VA loans typically have lower closing costs than conventional loans, and some of these may be covered by the seller, depending on your agreement.

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CHECK IF YOU HAVE FULL ENTITLEMENT FOR A VA LOAN

Qualified veterans, active-duty service members and eligible survivors with full entitlement have no loan limits on amounts over $144,000. This means that no down payment is required, and the VA will guarantee up to 25% of the loan amount to the lender if there is a loan default on amounts over $144,000.

You may have full entitlement if you meet one of the following conditions:

  • You have not yet used your VA home loan benefit, or
  • You fully repaid a prior VA loan and sold the property, restoring your full entitlement, or
  • You previously used your VA loan benefit, experienced a foreclosure or short sale and have repaid the VA in full.

Consider Alternatives to VA Loans

VA loans have undeniable perks, but other mortgage options may work better for your budget. When it comes to financing a home for veterans, service members or eligible military families, the three main options to consider are USDA loans, FHA loans and conventional mortgages. Below is a breakdown of each.

  1. 1

    USDA Loan

    USDA loans are similar to VA loans because they require no down payment and offer low-interest options for qualified borrowers. You should consider this loan if you fall into a lower income bracket or are considering buying in a rural area. The best way to understand the USDA loan application process is to ask your realtor, who will be able to find out if you qualify to buy in the specific area you're looking at.

  2. 2

    FHA Loan

    For first-time homebuyers, FHA loans offer a wide range of benefits. Specifically, FHA loans may be a better option than VA loans because of less stringent credit requirements. FHA loans only require a credit score of 580, while VA loans often require scores in the mid-600s. In addition, FHA loans allow for a slightly higher debt-to-income ratio, so those with higher student loans stand a better chance of qualifying for an FHA loan.

  3. 3

    Conventional Mortgages

    If you can make a 20% down payment, you should consider going with a conventional loan. Putting 20% down will save you from paying for private mortgage insurance (PMI), and you'll save thousands of dollars on interest. Paying no down payment with a VA or USDA loan may sound much easier, but it'll cost you over the life of the loan.

Apply for Veteran Homebuyer Grants

The federal government offers grants to eligible veterans to help them buy, build or adapt homes. Many are specifically tailored to veterans with disabilities, with some of the most popular federal programs listed below.

  • Disability Housing Grants: These programs for disabled veterans offer grants that can help assist in building, buying or fixing up an adapted home. The grants aim to help with severe service-connected disabilities.
  • Home Improvements and Structural Alterations (HISA) Grant: The HISA grant is for disabled vets who currently own homes but need to make changes to live comfortably. The grants can be used to improve entrances and exits in homes, bathroom facilities and kitchens. Veterans may receive up to $6,800 for service-connected disabilities or up to $2,000 for non-service-connected disabilities.
  • Mortgage Credit Certificates (MCC) Program: The MCC program helps lower‐income families afford home ownership. Through the program, home buyers can claim a dollar‐for‐dollar tax credit for a portion of mortgage interest paid per year, up to $2,000.
  • Temporary Residence Adaptation (TRA) Grant: TRA is a grant created to help disabled veterans lead more independent lives and have living situations that offer higher comfort. For FY 2024, veterans eligible for a Specially Adapted Housing (SAH) grant can receive up to $47,130, while those eligible for a Special Home Adaptation (SHA) grant can receive up to $8,41
  • HUD-VASH Grants: The U.S. Department of Housing and Urban Development offers HUD-VASH grants to help vets in financial need to secure safe housing.

Find Housing Assistance and Support Options

Whether you're looking for rental housing grants or adaptive housing, veterans can be supported through various local, state and nonprofit programs. Many programs offer severely discounted rates or no down payment options, and you'll also find options for elder care, low-income housing and more.

State

State programs assist veterans with housing costs, with some offering more extensive benefits than others. For example, the Texas Veterans Land Board provides low-interest property, residential and home improvement loans with minimal or no down payment, plus interest rate reductions for veterans with disabilities. Other states offer similar programs to support veterans in achieving stable housing.

  • Down Payment Assistance (DPA) Programs: DPA programs vary from state to state, but most offer some form of assistance. Four basic types of down payment assistance include a down payment gift that is not repaid, a second mortgage paid alongside your main mortgage payment, a loan paid when you sell, refinance or stop using a home as your primary residence and a forgivable loan.
  • U.S. Department of Housing and Urban Development (HUD): HUD's state pages list housing agencies and charitable programs, including options for veterans and military families. Programs like California's CalVet offer qualified veterans home loans with below-market interest rates.
  • National Association of State Veterans Homes: State veteran homes are available throughout the country, with even rural states offering multiple home options. NASVH's main goal is to promote better quality of care and life for veterans and their families.
  • Semper FI & America's Fund - Service Member and Family Support: The Semper Fi & America's Fund provides immediate assistance to those who have been wounded in combat. This program, which operates out of most VA hospitals around the country, is specifically designed for military members and their families. It also offers financial assistance for housing, as well as adaptive equipment, transportation help and more.

Local

It's best to start with your local VA to find local resources in your area. Your local VA can direct you to emergency housing, financial help, homeownership options and more.

  • The VA's 25 Cities Initiative: The Initiative aims to end veteran homelessness in major cities and has inspired efforts nationwide. Landlords offering rentals to veterans, as well as brokers connecting veterans to subsidized housing like
    Section 8, receive bonuses and incentives.
  • StatesideLegal: For veterans needing legal help, including in housing matters, StatesideLegal can help you find and contact a local lawyer. Legal representatives are well-versed in the needs of veterans.
  • U.S. Vets: Those who live in D.C., Texas or out West likely have a U.S. Vets office in their community. The mission of U.S. Vets is to help end homelessness for veterans by helping secure housing in shelters, transitional solutions and permanent homes.
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LOOKING FOR YOUR LOCAL VA CENTER?

MoneyGeek gathered addresses and phone numbers of VA centers across the U.S. Find your local or nearest VA location.

Nonprofit

A shortage of services and social isolation contribute to homelessness among veterans. Often started by veterans themselves, numerous nonprofits have helped thousands in need.

  • Homes for Our Troops: HFOT is a national organization that builds specially adapted homes for veterans with severe injuries, including limb amputations, paralysis and traumatic brain injuries (TBI).
  • Building Homes for Heroes: This program builds or buys homes and gives them to eligible veterans and families. With more than 255 homes gifted to the nation's injured veterans as of the end of 2020, a new house has been offered every 11 days since the organization's founding.
  • Army Emergency Relief: This nonprofit can help Army veterans secure emergency assistance for mortgage or rental relief and temporary lodging. In 2019, AER provided $70 million in loans and grants to 40,000 Soldiers and Families.
  • National Association of American Veterans: The Association offers help with rent/mortgage assistance, funding for necessary home repairs and emergency expenses. It also offers helpful financial guidance and boasts the NAAV Military Family Program to ease the burdens of caregivers.
  • Veterans of Foreign Wars (VFW) — Unmet Needs Program: The VFW offers grants for military families facing financial difficulties. All the info you'll need to apply is neatly organized on the site's homepage.

Connect With Your Local VA Center for Support

Use the table below to find your state and city, and then find the address and phone number for your nearest VA. You can also use the search bar. The VA can offer state-specific resources and guidance on the benefits you're entitled to, including VA loans, rental assistance and more.

State
City
Address
Phone

Alabama

Birmingham

1201 2nd Avenue South, Birmingham AL 35233

205-212-3122 or 877-927-8387

Alabama

Hunstville

415 Church Street Bldg H ,Suite 101, Hunstville AL 35801

256-539-5775 or 877-927-8387

Alabama

Mobile

3221 Springhill Ave Bldg 2 ,Suite C, Mobile AL 36607

251-478-5906 or 877-927-8387

Alabama

Montgomery

4405 Atlanta Highway, Montgomery AL 36109

334-273-7796 or 334-273-7796

Alaska

Anchorage

4400 Business Park Blvd Suite B-34, Anchorage AK 99503

907-563-6966 or 907-563-6966

Purchase Homeowners Insurance

Homeowners insurance is typically required to secure home loans, including VA loans. For VA loans, lenders often ask veterans to pay a full year's worth of insurance upfront, with future payments added monthly into an escrow account along with the mortgage payment. Besides being a loan requirement, homeowners insurance offers valuable coverage by helping cover repair or replacement costs and providing liability protection.

There are a variety of veteran-specific homeowners insurance providers, with some offering discounts specifically for them. Some companies, like AFI and USAA, provide tailored policies with added benefits for military families. Be sure to compare rates and coverage from both military-focused and general providers to find the best fit for your needs.

Veterans Homebuying FAQ

For veterans, the homebuying process comes with unique benefits and considerations. Below are answers to frequently asked questions to help you navigate this journey.

What financial assistance is available for veterans buying a home?

How can I find a real estate agent who understands veterans' needs?

What is the VA funding fee, and can it be waived?

Are there special homeowner insurance options for veterans?

What should I know about refinancing my home with a VA loan?

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About Nathan Paulus

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Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.

Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.

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