The VA loan program is one of the easiest loan programs for eligible home buyers to qualify for, so why aren’t more Veterans and active-service Military members taking advantage of it?
We’re here to uncover the top misconceptions around VA loans – held by buyers, loan officers, brokers, and lenders – and bust those myths once and for all.

Michelle Crumley, Newrez’s Director of VA Education and Policy shares her expertise as both a Military family member and VA loan specialist to talk about the realities of VA lending, what the average VA buyer really looks like, and why mortgage specialists should consider branching out into VA loans.
Keep reading for some of the top takeaways from our discussion.
The VA loan program has been around since 1944 and has seen multiple changes to the program since then. But still, misconceptions and wariness persist. At Newrez, one of our most important values is helping to support and show appreciation of Veteran/Military homebuyers. That’s why we have VA loan specialists on hand to help borrowers and loan officers through the process.
Michelle is dedicated to improving awareness and education around VA home loans, as a result of experiencing the difficulties of accessing support for her own family’s VA loan. Since then, she has achieved multiple certifications, including the Certified Veterans Lending Specialist® (CVLS®) award from NAMB and the Military and Veterans Housing Certification (MVHC) from VAREP. Now, she teaches and coaches loan officers, mortgage specialists and brokers all about how the program works.
Why Some Veterans and Active Military Don’t Use Their VA Loan Benefit
VA loans could be one of the easiest loan programs to qualify for and approve, however, many Veterans and active Military members don’t take advantage of this program.
The main reasons Michelle has come across include:
- Buyers don’t know about it
- Lenders aren’t talking to buyers about VA loans
- A misconception that VA loans are more expensive, time-consuming or difficult to qualify for
- Lenders or real estate agents actively dissuade buyers from using a VA loan
Hesitancy and wariness are still a huge barrier for Veterans and Military members using VA loans, but Michelle says that this is down to common myths and a lack of clear information about the realities.
The Biggest Myths and Misconceptions About VA Loans
1. No down payment = higher risk
When you think of the VA loan program, one of the first things that comes to mind is that there is no requirement for a down payment. Saving for a down payment is one of the biggest challenges of buying a home, so it’s a huge benefit for those returning from or actively in service. There’s no need to spend years saving or dip into savings accounts or investments for the down payment.
However, this does raise a concern for lenders, brokers, and sellers. Without a down payment, the common opinion seems to be that those buyers simply don’t have the money. Michelle explains that just because they don’t have to make a down payment, doesn’t mean they don’t have the money (or won’t use it for the down payment).
The money could be used for repairs or for when an appraisal is a little low but the buyer is willing to pay above it. It also means they won’t have to ask the seller for closing cost assistance, a huge plus for sellers!
The reality is that those VA loan buyers are not a higher risk because they don’t have to make a down payment, these buyers are in fact more flexible and advantageous to work with.
Research shows that the VA loan significantly boosts homeownership among the Military population – in fact in some markets, Military home ownership exceeds that of non-Military home ownership.
2. Veterans/active-service Military have poor credit
Similarly, to the down payment wariness, another common misconception is that VA loans are for those with not only no money but also lower credit scores. This is partially because the VA loan program is a government-run program and is commonly associated with lower income or lower credit buyers.
Again, the research shows this isn’t the case. In fact, as of June 19, 2024, the 30-day average credit score of VA loan buyers was 725, putting many Veterans in a good position for qualifying for a loan.
3. VA loans are time-consuming
While VA loans are in some ways more complex than conventional loans, with the right information they are not long, drawn out processes like some people think. So, if you’re expecting VA loans to pull you away from working with other loan programs or conventional loans, the reality is that they could be relatively fast.
4. VA loan buyers are mostly first-time buyers
The risks of working with first-time buyers usually surround having smaller down payments or a degree of uncertainty when it comes to getting approved. However, it might surprise you to learn than 60% of VA loan buyers are repeat buyers. They’re not first-time homeowners and may have previously purchased with a VA loan or another type of loan. Their familiarity with the process of buying a home can also become beneficial when it comes to communication and gathering financial documents for approval.
It's so important that loan officers, real estate agents, brokers, and sellers are aware of the realities of VA loan buyers. The idea that they’re less attractive buyers is not supported by the data, which shows there are clear advantages to working with them.
How to Support VA Loan Buyers as a Loan Officer
With more than 20 million Veterans and active-service members in the U.S., this is a market that spells huge opportunities for your growth if you can tap into it. If you have overlooked or avoided VA loans in the past but are seeking to branch out in the future, Michelle has some great advice:
1. Make sure you have foundational knowledge on the VA loan program
The first step to supporting Veterans in their home purchase is to get educated on the subject. Make sure you are up to date with the requirements, policies, and nuances of the program. Learn about eligibility criteria, VA entitlement, the Funding Fee, and how the program differs from others such as FHA or conventional loans.
If you are partnered with Newrez Wholesale and see an opportunity to grow in this market, reach out to us to learn more about VA training with Michelle. We visit our partners in their local area and have three types of training or a custom program created by Michelle to get you and your team up to speed with the VA loan program. If you want to go one step further, we even offer programs to help you become certified as an official VA specialist.
2. Get involved in the community
If you have a passion for serving the Military community, then you need to be present in that community. As Michelle says, “we want to see you don’t just say you support Military families. We want to see that you’re out there serving and getting involved.”
After experiencing the challenges of getting support for a VA loan in the past, Michelle realized that the best way for her to give back to the community was to become certified and help others. This enabled her to reach out as a subject matter expert and build relationships in the community.
3. Give Military families a reason to listen
The Military community is close-knit. They usually make decisions on who they’ll work with and trust with their finances based on someone they know gets them. In other words, you need to give Military families a reason to listen to you specifically.
As well as getting involved with the community, Michelle recommends looking at your digital footprint via your social media accounts, websites, or video content. Ask yourself if you can better communicate your support and expertise on VA loans.
Make sure your persona is open, honest, authentic, and welcoming to Military and Veteran families. Learn about Military culture and language to show that you’re someone who truly understands a Veteran buyer. Not only will this solidify their trust in you, but it also makes them your biggest advocates and referral partners.
4. Actively educate lenders and sellers
What can loan officers do to make sure that potential Veteran loan buyers aren’t overlooked by lenders or sellers? The key is education. If you want to support Veterans and Military members, sometimes you have to get actively involved on the buyer’s behalf.
A loan officer who can reach out and provide the right information to real estate agents about the buyer’s financial situation can make a big difference as they can go back to the seller and explain why they should consider that buyer. Educating lenders and sellers about the benefits of VA loans for themselves and the buyer can help to erase some of that doubt and uncertainty.
Why You Should Partner With Newrez
Helping Military families purchase their homes is an important mission at Newrez. We help buyers and loan officers get the right information and support on the VA loan program, thanks to our specialist team and internal VA education to make sure all our underwriters and processes are experts.
As one of the top VA loan providers in the country, and the second-largest non-bank servicer, we aim to keep almost all the loans we service in-house. We don’t sell the loans you bring to us to a third-party, our goal is to retain borrowers for our mutual benefit, which is a big advantage to partnering with Newrez Wholesale.
If you’re not already partnered with us, get in touch today via our website or book a call to learn more.
Certified Veterans Lending Specialist®(CVLS®) is a registered trademark of the National Association of Mortgage Brokers, Inc and is not affiliated with Newrez.
Newrez does not retain servicing on all loans originated and may not service loans originated for the entire term of the loan.