When it comes to helping veterans and active-duty service members become homeowners, few programs are as impactful as the VA Home Loan Guaranty. Backed by the U.S. Department of Veterans Affairs, this benefit is designed to remove common barriers to homeownership and provide well-earned financial flexibility. In a recent Consumer Guide from the National Association of Realtors (NAR), veterans and their families can explore how VA loans work, who qualifies and how a Realtor can support them every step of the way.
For those who’ve completed military service or are actively serving our country, the VA Home Loan Guaranty is a great path to achieving the dream of homeownership. This U.S. Department of Veterans Affairs program can make owning a home more attainable and affordable.
How does the program work?
You first need to secure financing to buy a home through a bank, credit union or mortgage company. Then the VA works with your lender to guarantee the loan, reducing the lender’s risk.
How do VA loan terms differ from conventional loan terms?
Most conventional home loans, which must conform to standards set by the federal government, require buyers to make a down payment. However, VA-backed loans do not require a down payment as long as the purchase price is at or below the home’s appraised value.
In addition, VA loans typically offer lower interest rates than many other loan options. Unlike other low-down-payment programs, they also do not require private mortgage insurance or a mortgage insurance premium, which can increase monthly costs. However, VA loans do include a funding fee that ranges from 1.25% to 3.3% of the total loan amount.
How much can you borrow?
Since 2020, VA loans have had no federally mandated limit. However, your lender might use the same limit imposed on conventional loans. In 2025, that limit is $806,500.
Who is eligible for a VA home loan?
Eligibility for VA loans extends to several groups. Active-duty service members qualify if they have served for at least 90 continuous days. Veterans are eligible if they served for at least 24 continuous months or meet other specified service requirements. National Guard members and Reserve members might also qualify if they meet the minimum active-duty or length-of-service requirements. Additionally, unremarried surviving spouses of veterans might be eligible under certain conditions.
For more specifics, visit the VA home loan eligibility page at www.va.gov/housing-assistance/home-loans/eligibility.
What is a Certificate of Eligibility and how can I get one?
It proves to the lender that you qualify for the VA home loan benefit. Apply for the COE through your lender, online, or by mailing in the Request for Certificate of Eligibility (VA Form 26-1880).
VA loans are assumable. What does that mean?
It means any buyer who qualifies with the lender can take over the payment on a VA home loan. When you sell a home with a VA loan in place, if interest rates have increased, this might be an attractive feature for a buyer. However, buyers assuming a VA loan generally will have to put down the amount of the sellers’ equity position (the difference between the price and the loan balance).
Why should I use a real estate agent to help me with the purchase?
Veterans and active-duty service members often have unique needs. Agents who are Realtors (members of the National Association of Realtors) can help you meet those needs when you buy or sell a home. They’ll be your expert guide through one of life’s most impactful financial transactions.
Many Realtors have obtained NAR’s Military Relocation Professional certification to better prepare them to work with VA buyers. The VA Home Loan Program Reform Act, signed into law this year, aims to permanently end a VA rule that prevented veterans from paying their agents. The law helps ensure VA buyers can compete on equal terms in today’s housing market.
Whether you’re buying your first home, relocating after service, or helping a loved one explore their options, VA loans are a powerful resource for building financial stability through homeownership. Realtors are proud to support our nation’s heroes with expert guidance tailored to their needs, and with every successful home purchase, we honor their service in a meaningful way. #That’sWhoWeR
Greater Chattanooga Realtors is the voice of real estate in Greater Chattanooga. A regional organization with nearly 3,000 members, Greater Chattanooga Realtors is one of some 1,200 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors service Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. For more information, visit www.gcar.net or call 423 698-8001.