By Neil Brooks, real estate agent and NewDay USA spokesperson
For generations, the VA home loan has been one of the most valuable benefits available to veterans and military families, designed to make homeownership more affordable and provide a path to building generational wealth.
NewDay USA’s 2026 Military Homebuyer Readiness Survey, a study of more than 1,200 veterans and active-duty service members, shows just how well the benefit works when veterans use it. Among those who have used a VA home loan, 98% say they’re satisfied with the experience, and 47% say they wouldn’t have been able to buy a home without it. More than two-thirds of veterans and service members who don’t yet own a home call homeownership one of the most important milestones in their lives.
So why do so few feel ready to take that step?
The same survey found that only 7% of non-homeowners consider themselves completely ready to buy in 2026. Nearly half (49%) say homeownership feels entirely out of reach. The desire is there. What’s missing, for many, is a clear path through the upfront costs that stand between them and the keys to a home.
Cash Barrier
The VA home loan eliminates the down payment, which is one of its most powerful advantages. But closing costs, home inspections, appraisal fees and earnest money deposits still require cash on hand. That’s where the math breaks down for many military families.
The survey found that 49% of non-homeowning respondents cited saving for upfront costs as one of the biggest barriers to homeownership. Forty-five percent said they don’t have enough savings to cover closing costs, and nearly one in five have zero savings set aside. Meanwhile, 52% carry more than $5,000 in high-interest debt. Among active-duty respondents, half carry more than $10,000.
These numbers reflect a real challenge. When home prices keep rising and affordability gets tighter, saving for upfront costs becomes harder for everyone, especially military families managing frequent relocations and the financial disruptions that come with them. That reality shouldn’t keep veterans from a benefit they’ve earned.
The good news is that when you remove the upfront cost barrier, intent changes fast. Only 21% of non-homeowning respondents said they were likely to buy a home in 2026 when facing those costs. That number nearly doubles to 40% when down payment and closing costs are taken off the table.
Common Myths
The financial barrier is real, but it’s made worse by what many veterans and service members don’t know about the benefits available to them. The survey found that 55% of respondents held at least one misconception about the VA home loan. That’s a problem because every misconception a veteran carries is a reason to hesitate and, in many cases, a reason never to start the process at all.
The truth is that the VA home loan offers advantages that most other loan types don’t. There is no private mortgage insurance, which can save buyers hundreds of dollars a month. The VA loan typically carries a lower interest rate than conventional mortgages. The benefit can be used more than once. And with an experienced VA lender, the process doesn’t take longer than conventional or FHA loans. These are fundamental advantages that change what a military buyer can afford, and knowing about them makes all the difference.
Finding Solutions
Veterans and service members who feel priced out of the market have more options than they may realize. The VA loan’s zero-down-payment benefit already removes a major obstacle most buyers face. For closing costs, NewDay USA’s Home Advantage Loan allows qualified veterans and service members to finance those costs with an unsecured personal loan, with interest refunded if repaid within one year.
Working with lenders and real estate agents who specialize in VA loans also makes a measurable difference. When veterans pair the right benefit with the right team, the process works the way it was designed to. A good first step is finding a lender who primarily works with VA buyers and can walk through the full picture, from what’s needed upfront to what the monthly payment will look like. That single conversation can turn homeownership from something that feels out of reach into something with a clear timeline and plan.
The VA home loan was built to give veterans and military families a real advantage on the path to homeownership. The barriers that remain are real, but they’re solvable. With the right information and the right support, more veterans can put this benefit to work and build the stability and wealth they’ve earned.
Neil Brooks is a Navy veteran and real estate professional who has specialized in serving military and veteran families since 1999. With more than 1,000 closed transactions, he has earned a reputation for steady leadership, clear communication and mission-driven service. He uses his experience serving veteran buyers to help shape more accessible and effective products for those who have worn the uniform.
Read more articles for the Veteran Community here.
