Navy Federal Study: VA Loans Widely Known But Poorly Understood Among Military Community / Fresh Today / CUToday.info

VIENNA, Va.— Many service members and veterans still don’t fully understand one of the most powerful homebuying tools available to them.

A new Navy Federal Credit Union report finds that while more than nine in 10 military respondents know about VA home loans, a striking share remain unclear on core benefits—from zero-down financing to lower interest rates—suggesting that myths and misinformation continue to hamper access to a key pathway to homeownership for those who served.

The report is based on a nationwide survey of over 1,000 military respondents and underscores the need for improved education and outreach around this vital homeownership asset.

Key Findings from the report:

• High Awareness, Low Understanding: While 92% of respondents are aware of VA loans, nearly half did not know that VA loans typically offer low interest rates, and 55% mistakenly believed a down payment is required. In reality, VA loans allow buyers to finance up to 100% of the home’s sale price and often feature interest rates 0.25% lower than conventional loans.
• Information Gaps: Only 39% of respondents said they turn to official VA or military resources for information. Others rely on personal research (20%) or family members (9%), leading to confusion and persistent myths. On average, eligible borrowers held more than two misconceptions about VA loans.
• High Satisfaction Among Users: Despite knowledge gaps, 92% of those who used a VA loan reported satisfaction with the process, and 91% would recommend VA loans to their peers.
• Role of Realtors: While most military homebuyers feel realtors are knowledgeable about VA loans, more than one in four believe it’s difficult to find a Realtor who truly understands the unique needs of military families.

“For Active Duty servicemembers, Veterans, and their families, VA loans can provide crucial benefits on the journey to homeownership,” said Christopher Davis, assistant vice president of residential lending at Navy Federal. “At Navy Federal, we believe every military family deserves the opportunity to own a home without unnecessary barriers or confusion.”