A new survey by the Vienna-based credit union reveals widespread misconceptions among servicemembers and veterans about VA home loans, underscoring a need for better education.

Navy Federal Credit Union recently released new research highlighting persistent confusion among servicemembers and veterans about the benefits of Veterans Affairs (VA) home loans, even as the credit union approaches a major milestone of 15 million members.

The report, Spotlight on VA Loans, is based on a nationwide survey of more than 1,000 military respondents and found that while 92% of participants were aware of VA loans, many still misunderstood their core advantages. 

Nearly half did not realize that VA loans typically feature lower interest rates than conventional mortgages, and 55% incorrectly believed a down payment is required. In reality, the program allows qualified buyers to finance up to 100% of a home’s sale price, often with interest rates about 0.25 percentage points lower than standard loans.

Despite the high awareness, information gaps persist. Only 39% of respondents said they rely on official VA or military resources for information, while others turn to personal research (20%) or family members (9%). On average, eligible borrowers held more than two misconceptions about VA loans.

Even so, those who used VA loans expressed strong satisfaction: 92% said they were happy with the process, and 91% would recommend the loans to others. Still, more than one in four military homebuyers said it was difficult to find a realtor who fully understood 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.”

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The credit union, one of the nation’s largest VA lenders, said it continues to invest in education and outreach through initiatives like its RealtyPlus® program, which connects members with specially trained real estate agents familiar with VA benefits and military relocation. It also offers continuing education courses for agents to deepen their expertise.

“We’re committed not only to educating our members at Navy Federal, but also equipping real estate professionals with the tools and training they need to serve this community with care and expertise,” Davis said. 

According to newly released third-quarter data from the National Credit Union Administration, Navy Federal is now just 1,196 members shy of the 15-million mark, with 14,998,804 members as of Sept. 30 — a nearly 7% increase from a year earlier. 

The Vienna, Virginia–based institution reported assets of just over $194 billion, up from $180 billion last year, representing a 7% gain. Earnings totaled approximately $1.47 billion through the third quarter, a 1% decline compared with the same period in 2024.

As Navy Federal grows, the findings from its latest report suggest that financial literacy — particularly around VA home loans — remains a crucial part of supporting the military community’s path to homeownership.

“When our members feel understood and supported, the dream of homeownership becomes a reality—and that’s a mission we’re proud to stand behind.”

– Christopher Davis
Assistant Vice President of Residential Lending
Navy Federal Credit Union