Veterans make up roughly 7% of the US population. But VA loan usage consistently trails what it should be, given how many eligible service members and veterans actually qualify. A 2023 survey found that nearly one-third of veteran homebuyers didn’t know the VA loan benefit was available to them at all. That’s not a policy failure. That’s an awareness failure — and it costs veterans real money every single month.
One veteran I work with in the Gilbert area came to me convinced he needed to save up a 20% down payment before he could buy. He’d been renting for four years after leaving the Army. When I walked him through his VA entitlement, he bought a $420,000 home the following spring with zero down, no private mortgage insurance, and a competitive interest rate. He’s building equity now instead of writing a rent check.
That’s what this benefit is actually worth.
What the VA Loan Actually Gives You
The VA loan program — backed by the US Department of Veterans Affairs — isn’t a charitable handout. It’s a benefit earned through military service, and it’s a financially powerful one. Here’s what it delivers:
- No down payment required on qualifying purchases
- No private mortgage insurance (PMI), which typically costs $100–$300/month on conventional loans
- Competitive interest rates — often 0.5% to 1% lower than conventional loans, based on recent market data
- Limits on closing costs the veteran can be charged
- No prepayment penalty
- Assumable loans, which can be a huge selling point in a high-rate environment
The one cost veterans do pay is a funding fee, which ranges from 1.25% to 3.3% of the loan amount depending on service type and whether it’s a first or subsequent use. Disabled veterans are exempt from this fee entirely.
It’s also worth noting that a proposal is currently advancing in Congress to raise that VA loan funding fee, which has drawn significant pushback from veterans’ advocacy groups. If you’re eligible and thinking about buying, sooner rather than later could matter.
Why Phoenix Is Particularly Good Territory for VA Buyers Right Now
Arizona has one of the largest active-duty and veteran populations in the country. Luke Air Force Base in the West Valley, Davis-Monthan in Tucson, and Fort Huachuca in Sierra Vista feed a steady stream of military families into the Phoenix metro housing market. Areas like Goodyear, Surprise, and Avondale have deep familiarity with VA transactions — which matters, because seller acceptance of VA offers can sometimes be a sticking point.
As of recent market data, median home prices in the Phoenix metro sit around $430,000–$450,000. That’s not cheap. But compared to San Diego, where the median is pushing $800,000, or Northern Virginia near $600,000, Phoenix still gives veterans genuine purchasing power with their VA benefit.
Inventory has loosened up. The Phoenix housing market has been in something of a stalemate over the past year, with both buyers and sellers hesitant. For a VA buyer, that hesitation actually creates opportunity — sellers are more willing to negotiate, more willing to cover closing costs, and more willing to accept VA financing conditions they might have pushed back on during the 2021–2022 frenzy.
The Real Obstacle: Awareness and Agent Preparation
Here’s where I’ll be blunt.
Most real estate agents are not properly prepared to work with military clients. VA transactions have specific appraisal requirements, MPR (minimum property requirements), and timeline nuances that differ from conventional deals. An agent who doesn’t know that a VA appraiser will flag a broken window or a non-functional water heater can inadvertently tank a deal — or push a veteran toward a conventional loan just to avoid the friction. That’s not acceptable.
I’ve written about this problem directly: most real estate agents are not ready for this type of military client. If you’re a veteran looking to buy in the Phoenix area, ask your agent point-blank how many VA transactions they’ve closed in the last 12 months. If the answer is zero or vague, keep looking.
What Veterans Should Do Before They Start Shopping
- Get your Certificate of Eligibility (COE) — you can pull it through the VA’s eBenefits portal or your lender can do it for you
- Work with a VA-approved lender, not just any lender who says they “do VA loans”
- Get pre-approved, not just pre-qualified — sellers take pre-approval letters more seriously, especially in competitive pockets of the market
- Understand your full entitlement — if you’ve used a VA loan before, you may have remaining or restored entitlement available
- Pick an agent with documented VA transaction experience — this is non-negotiable
The Bottom Line
Veterans gave a significant portion of their lives to this country. The VA loan benefit exists specifically to make homeownership more accessible in return. But a benefit you don’t use is worth exactly nothing.
Phoenix is a market where that benefit can go a long way right now. Inventory is up, sellers are negotiable, and prices — while not low — are still more accessible than most major metros. A veteran who buys a $430,000 home today with zero down, no PMI, and a rate that’s 0.75% below market is in a fundamentally different financial position than the same veteran signing a lease renewal.
If you served and you’re thinking about buying in the Phoenix metro, the first call should be to a VA-experienced lender. The second should be to an agent who actually knows what they’re doing with military buyers. Everything else follows from there.