For American soldiers and their families, looking for inexpensive housing has long been a part of their life. And it's never been more difficult than since the Covid-19 outbreak sent the US real estate market into a boom.

Fortunately, loans backed by the Department of Veterans Affairs help to alleviate much of the load. It is a program that enables veterans to buy a home with no down payment and is available for service members and veterans as well as eligible survivors.

VA loans have grown in popularity in recent years, but many borrowers, home sellers, and real estate agents still remain skeptical.

Long closing dates, red tape, and stringent home inspection standards are some of the drawbacks of VA loans. While the VA has made significant progress in addressing such bottlenecks, the negative image still exists.

Delays have plagued VA loans for decades. However, the VA has stepped up its game in recent years. As a result, the popularity of VA loans has surged.

More than 1.2 million homes were purchased with VA loans last year, a new high since the program began in 1944.

VA loans offer several benefits to active service members and military veterans, including a $0 down payment and lenient credit score restrictions, allowing veterans to speed up their home-buying timelines. Veterans can use low interest rates and no loan cap to buy, build or refinance a home if they qualify. 

Furthermore, homebuyers who use VA loans do not need to purchase private mortgage insurance. However, VA loans do come with a 2.3% upfront funding fee for first-time borrowers and a 3.6% on future VA loans.

The most detrimental disadvantage in today’s hot real estate market is home sellers are apprehensive about VA loans. Because of the residual stigma of the VA loan program, sellers who receive several bids on their home frequently reject VA bidders.

The VA loan benefits veterans of the United States military and their families for their unsolicited services for the nation. However, if the VA loan process isn't well-understood, it won't help our military members in today's home market.