VA Benefits: Many Veterans Missing Out on Thousands of Dollars of Support

Thousands of U.S. veterans may be missing out on significant financial support through the Department of Veterans Affairs (VA), particularly when it comes to home loan benefits that are widely misunderstood, according to a report from Veterans United Home Loans.

The report found that as of last year, there was $28 billion in unused funds available to veterans under the program.

Despite offering no down payment options, competitive interest rates and limited closing costs, the VA home loan program remains underused, with many eligible veterans unaware of how much they could save.

"It’s costing veterans their best shot at homeownership," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. "More than 58,000 VA loans go untapped every single year. Not because veterans don’t qualify. Because they don’t know they qualify. Or they’ve been talked out of using the benefit by myths that simply aren’t true."

Why It Matters

At a time when housing affordability remains a major challenge, the VA home loan program is one of the most valuable financial benefits available to veterans.

Yet confusion about eligibility and costs means that many veterans do not apply while others assume they don't qualify. This leaves thousands of dollars in potential savings on the table.

What To Know

According to the VA, the home loan benefit is designed to help veterans, service members and some surviving spouses become homeowners.

Benefits of the home loan include:

• No down payment required (in most cases)
• No private mortgage insurance (PMI)
• Lower interest rates compared to many conventional loans
• Limits on certain closing costs
• Assistance for those with limited credit or income

"No down payment, no PMI, no prepayment penalty, lower rates, and it’s a lifetime benefit you can use multiple times," Ryan said. "In this market, that’s not a minor perk. That’s potentially $40,000 to $80,000 in upfront savings on a single transaction."

Why Many Veterans Miss Out

Experts say the program is often misunderstood, even among those eligible.

There's a common misconception that a perfect credit score is required or that VA loans take too long or are harder to process.

Confusion about eligibility requirements means many veterans are unaware that the loan conditions are often more flexible than conventional loans.

Still, Drew Powers, the founder of Illinois-based Powers Financial Group, said for many veterans, the issue comes down to the payment amounts, despite the added benefits.

"If you cannot afford the payments, you cannot buy the home,” Powers told Newsweek. “Home prices have skyrocketed versus household income, and many buyers are priced out regardless of favorable loan terms. If a servicemember or veteran finds a home they can afford, they are likely to lose it because of the time and appraisal requirements in the VA loan."

How Much Veterans Could Be Missing

The savings from a VA loan can be substantial. Avoiding a down payment can save tens of thousands upfront. Plus, avoiding PMI can reduce monthly payments by hundreds of dollars.

The lower rates can save thousands over the life of a loan, so tens of thousands of dollars are possible in total savings, experts said.

"For veterans, these loans are not a second-tier loan product. In expensive housing markets, these loans can preserve cash and make homeownership possible when saving a large down payment would take years," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.

Who Is Eligible

Criteria is generally as follows:

• Active-duty service members
• Veterans
• National Guard and Reserve members
• Some surviving spouses

However, exact eligibility depends on the length and type of service as well as discharge status.

What Veterans Should Do Now

Those who may be eligible but have not used the benefit should check their eligibility through the VA and obtain a Certificate of Eligibility (COE). At that point, compare VA loan options with conventional mortgages and work with lenders familiar with VA-backed loans.

"If someone initially used a conventional loan due to timing or competitive pressures, they may still have the ability to refinance into a VA loan later through a VA cash out refinance," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "Long term, affordability is going to matter far more than simply getting into a house quickly, especially as taxes and insurance continue rising across the country."

What Happens Next

As housing affordability remains a key issue, awareness of VA benefits is expected to grow.

• The VA is continuing to promote the program.
• If more veterans take advantage of these options, thousands more could access homeownership for the first time and reduce their long-term housing costs.

2026 NEWSWEEK DIGITAL LLC.

This story was originally published May 27, 2026 at 11:37 AM.