For many veterans and active-duty service members, VA loans are one of the most valuable benefits of military service. Backed by the U.S. Department of Veterans Affairs, these loans make homeownership more attainable through lower upfront costs, no private mortgage insurance, and flexible credit requirements.
With Veterans Day right around the corner, it’s a good time to highlight this powerful program and understand how it works. In this Redfin guide, we’ll explain who qualifies, what the main benefits are, and how to make the most of your VA loan when buying or refinancing a home.
What is a VA loan?
A VA loan is a type of mortgage guaranteed by the U.S. Department of Veterans Affairs. It’s designed to help eligible service members, veterans, and surviving spouses buy or refinance a home with favorable loan terms, often with no down payment required.
While the VA doesn’t lend money directly (except in rare cases), it guarantees a portion of the loan. This means if a borrower defaults, the VA will cover part of the lender’s loss. Because of this guarantee, lenders can offer competitive interest rates and flexible qualification standards.
Why the VA loan program exists
The VA loan program was established in 1944 as part of the original GI Bill, designed to help service members transition to civilian life and build financial stability. Since then, it has helped more than 28 million veterans and their families buy, build, or refinance homes.
VA loans in today’s market
According to a recent Redfin report, VA loans have become slightly more common as the housing market tilts in buyers’ favor and sellers grow more open to offers with lower down payments. Nationwide, 7.3% of mortgaged homebuyers used a VA loan in August 2025, up from 6.5% a year earlier—the highest share for that month since 2019.
These loans are most prevalent in communities with a strong military presence. In Virginia Beach, VA, more than 43% of mortgaged buyers used a VA…