VA Home Loan Benefit Evens Field for Veterans in High-Value Markets

Veterans in high-cost markets can now buy homes without a down payment, thanks to the elimination of federally mandated conforming loan limits within the Department of Veterans Affairs’ (VA) home loan benefit.

In the past, if veterans wanted to borrow above the local loan limit, they would be on the hook for a down payment (typically, 25 percent of the difference between the purchase price and that limit). Now, regardless of the home price, veterans can buy a residence anywhere in the country without shelling out a down payment, as long as they qualify for the loan.

"The government and taxpayers have essentially said, ‘You served your country; you sacrificed, in many cases, the ability to build savings and credit because you put your life on the line,’" says Chris Birk, director of education at Veterans United Home Loans, the top VA mortgage lender. Even for former service members who have the cash for a down payment, a VA loan is valuable. Instead of using their savings for a down payment, Birk notes, they can use that money to improve their home or build a college fund for their children.

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