Why VA Loans are the Hidden Gem of Financial Freedom
The notion of financial freedom gets thrown around a lot, but it has a precise meaning for anyone who uses it. At the bare minimum, it’s about being able to afford a better quality of life. Sure, abundant resources usually shape that idea. But financial freedom is also a state of mind, and that’s the part that routinely trips people up.
It comes down to prosperity consciousness: an awareness that success is a learned mindset. Can’t and Don’t shift into Can Do. What the average person lacks isn’t desire; it’s the practical know-how to put this into motion. Today, we’re linking that mindset to something concrete: VA loans and financial freedom. That’s our point of departure.
How VA Loans Pave the Way to Financial Freedom
Too many people do things the same way, hoping for a different result. But the game of life is not like gambling, which sometimes yields a winning outcome. Perhaps that’s where we fall short? When you roll the dice, you may win or you may lose. In the financial world, things take on a completely different complexion.
Success comes to those who use the right tools, leverage opportunities, and optimize resources. Veterans are a unique class of people who may qualify for unique benefits that elude the rest of us. Eighty years ago, the G.I. Bill was passed, providing valuable benefits to veterans.
Special provisions provide exclusive benefits to eligible veterans, service members, and qualified spouses. For example, eligible military members and their families may qualify for a VA home loan or a VA cash-out refi, with many other advantages. These are financially empowering tools that lay the foundation of stability and generational prosperity.
Homebuyers are advised to read up on all aspects of veterans’ loans and government programs (through the US Department of Veterans Affairs), facilitating a clear pathway to home ownership and ultimately to financial freedom.
Merits of VA Loans over Traditional Loans
Currently, homeownership rates among the younger generation are at their lowest level in decades. The median age of homeowners in the United States has risen to 40. This means that younger people are finding it increasingly difficult to qualify for mortgages.
Part of the problem is the median home price, currently hovering around $330,000 nationwide. More importantly, the interest rate on mortgages increases homeowners’ costs over the term of the loan. At around 5% – 6%, mortgage rates remain largely unaffordable.
In 2021, the 30-year mortgage rate was 3.15%, significantly lower than today’s rates. Each fractional increase in interest rates translates into substantial outlays over time. This erodes personal disposable income and limits prospects of financial freedom. Fortunately, the Federal Reserve is slowly easing interest rates, as evidenced by several 25-basis-point declines in 2025. With persistent inflation, Fed officials are likely to maintain a wait-and-see approach.
Why VA Borrowers Stand Apart in a Tough Market
Veterans are positioned well ahead of the pack, thanks to baked-in benefits and provisions. With a VA loan, no down payment is needed. That’s a huge payload off your shoulders, right from the get-go. With a traditional mortgage, borrowers are required to trade down payment for PMI. The more you put down, the less PMI you contend with. In today’s economy, saving money for a down payment is difficult; a VA loan simply makes sense. Plus, veterans, service members, and eligible families are not penalized for not making a down payment.
In terms of interest rates, VA loans are comparable to standard mortgage rates. Sometimes, the rates are lower. But it’s the value-added benefits that make VA loans so appealing to applicants. The first order of business is a COE. The Department of Veterans’ Affairs issues the Certificate of Eligibility. Once status is established, credit scores and earnings are taken into account.
Protections Are Available
Fortunately, for veterans, these are less important than they are with traditional mortgages. That’s because the government partially backs VA loans. In other words, if a veteran defaults, the government will make good on part of the payments. It’s hard to see it at the time, but these types of programs are the blueprint for financial freedom. The ability to own a home is priceless, and a VA loan streamlines that process by removing barriers to entry into the real estate market.
We are living in precarious times when the dream of homeownership is slipping out of reach for far too many families. It’s ethically imperative to empower our protectors – veterans – with the tools, resources, and know-how they need to live the dream they so dutifully protect for us. Freedom is not free, but the very least we can do is facilitate a pathway to homeownership and financial freedom for those who put it all on the line for the rest of us.
