{"id":49769,"date":"2026-05-05T15:56:32","date_gmt":"2026-05-05T12:56:32","guid":{"rendered":"https:\/\/mk.gen.tr\/veterans-cite-upfront-costs-as-top-va-loan-barrier-in-2026\/"},"modified":"2026-05-05T15:56:32","modified_gmt":"2026-05-05T12:56:32","slug":"veterans-cite-upfront-costs-as-top-va-loan-barrier-in-2026","status":"publish","type":"post","link":"https:\/\/mk.gen.tr\/tr\/veterans-cite-upfront-costs-as-top-va-loan-barrier-in-2026\/","title":{"rendered":"Veterans cite upfront costs as top VA loan barrier in 2026"},"content":{"rendered":"

Nearly all veterans who have used a VA home loan, 98%, say they\u2019re satisfied with the experience. Almost half say they couldn\u2019t have purchased a home without it. And more than two-thirds of veterans and service members who don\u2019t yet own a home call homeownership a major life milestone. The motivation is there. The benefit works. So why are so many military families still sitting on the sidelines?<\/p>\n

The NewDay USA 2026 Military Homebuyer Readiness Survey<\/strong>, a survey<\/a> of more than 1,200 veterans and active service members, points to a clear answer. Among respondents who don\u2019t currently own a home, only 7% consider themselves completely ready to buy in 2026. Nearly half say homeownership feels out of reach. The issue isn\u2019t desire or discipline. It\u2019s the dollars required before they ever get the keys.<\/p>\n

Upfront costs are a major obstacle<\/h2>\n

When asked what\u2019s standing in their way, 62% of non-homeowning respondents cited rising home prices<\/a> and 49% pointed to saving for upfront costs. The VA home loan<\/a> eliminates the down payment, which is one of its most significant advantages. But closing costs, home inspections, appraisal fees and earnest money still require cash on hand, and that\u2019s where the math breaks down for many military families.<\/p>\n

Forty-five percent of respondents said they don\u2019t have enough savings to cover closing costs. Nearly one in five have zero savings set aside for them. And 46% of veterans left the military with less than $10,000 in savings. The financial starting line after service looks different than it does for most civilian buyers, and the industry needs to account for that reality.<\/p>\n

The good news is that a lender specializing in the military community is addressing these challenges head-on, covering closing costs, earnest money deposits, appraisal fees and some inspection fees through an unsecured personal loan with a rate significantly lower than typical unsecured options, putting homeownership within reach for more Veterans<\/a> and service members<\/p>\n

Misconceptions are compounding the challenge<\/h2>\n

Better education can make a meaningful difference. The survey found that 55% of respondents held at least one misconception about the VA home loan, and nearly a third didn\u2019t realize it requires no down payment. That\u2019s not a reflection of the buyer. It\u2019s a gap the industry can close.<\/p>\n

That knowledge gap extends to the professionals who are supposed to guide them. When agents and lenders aren\u2019t familiar with the VA loan\u2019s advantages, their clients miss out. Many don\u2019t realize that VA loans carry no private mortgage insurance, which saves buyers hundreds of dollars a month. <\/p>\n

Others assume the VA home loan process takes longer than conventional or FHA loans, when in reality a lender that specializes in working with VA home loans can close on the same timeline or faster. <\/p>\n

Service members can count their Basic Allowance for Housing toward qualifying income, and the VA loan can be used more than once over a veteran\u2019s lifetime. These aren\u2019t obscure details. They\u2019re fundamental advantages that change what a military buyer can afford and how competitive their offer can be.<\/p>\n

The industry has a role to play<\/h2>\n

The survey data makes something else clear: when you remove the upfront cost barrier, behavior changes fast. Only 21% of non-homeowning respondents said they were likely to buy in 2026 when facing those costs. That number nearly doubles to 40% when down payment and closing costs are taken off the table. That\u2019s a significant pool of motivated, qualified buyers that housing professionals are leaving underserved.<\/p>\n

Meeting that demand takes work on both sides of the transaction. Lenders need to build and offer home-buying solutions that account for the financial realities military families face after service, products that address the closing cost gap and make homeownership genuinely achievable, not just technically available. <\/p>\n

Agents need to understand VA loan mechanics well enough to lead the financial conversation early, connect buyers with VA-specialized lenders and present VA-backed offers with confidence rather than apology. A well-structured VA offer, supported by an experienced lender, is every bit as competitive as a conventional one.<\/p>\n

Veterans and service members are practical, disciplined buyers who are accustomed to getting things done under pressure. The benefit they\u2019ve earned is powerful, and satisfaction among those who\u2019ve used it speaks for itself. The gap isn\u2019t in the program. It\u2019s in the information and the solutions available to put that program to work. Housing professionals who close that gap will find a buyer pool that\u2019s motivated, loyal and ready to move.<\/p>\n

Neil Brooks is a U.S. Navy Veteran and Arizona-based real estate professional who has specialized in serving military and veteran families since 1999. He serves as a spokesperson for NewDay USA.<\/em><\/p>\n

This column does not necessarily reflect the opinion of HousingWire\u2019s editorial department and its owners.<\/em><\/p>\n

To contact the editor responsible for this piece:\u00a0tracey@hwmedia.com<\/a><\/em><\/p>","protected":false},"excerpt":{"rendered":"

Nearly all veterans who have used a VA home loan, 98%, say they\u2019re satisfied with the experience. Almost half say they couldn\u2019t have purchased a home without it. And more than two-thirds of veterans and service members who don\u2019t yet own a home call homeownership a major life milestone. The motivation is there. The benefit…<\/p>","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/49769"}],"collection":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/comments?post=49769"}],"version-history":[{"count":0,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/49769\/revisions"}],"wp:attachment":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/media?parent=49769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/categories?post=49769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/tags?post=49769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}