The Benefits of a VA Loan in 2025: A Game-Changer for Veterans

As of 2025, VA loans continue to be one of the most powerful benefits available to veterans, active-duty service members, and eligible surviving spouses. Backed by the U.S. Department of Veterans Affairs, these loans offer unparalleled advantages for homeownership, making them a top choice for those who’ve served.

Here’s why a VA loan could be your best option this year.

No Down Payment Required
One of the standout benefits of a VA loan in 2025 is the ability to buy a home with zero down payment. Unlike conventional loans, which often require 5-20% down, or FHA loans needing at least 3.5%, VA loans eliminate this barrier. This allows veterans to achieve homeownership without draining their savings, even in competitive markets like Minneapolis, St. Paul, all of Florida.

Competitive Interest Rates and No PMI
VA loans typically offer lower interest rates compared to conventional mortgages. In 2025, with mortgage rates fluctuating due to economic conditions, this advantage helps veterans save thousands over the life of their loan. Additionally, VA loans don’t require private mortgage insurance (PMI), a monthly fee that conventional borrowers often pay when their down payment is less than 20%. This can save you $100-$300 per month, depending on your loan size.

Flexible Credit Requirements
The VA loan program remains accessible in 2025, with more lenient credit requirements than conventional loans. While many lenders may have their own minimums (often around 620), the VA itself doesn’t set a strict credit score threshold. This flexibility makes homeownership achievable for veterans who might be rebuilding their credit, especially after facing financial challenges post-service.

Seller-Paid Closing Costs and Cash-Out Options
Another key benefit is that sellers can cover your closing costs with a VA loan, reducing out-of-pocket expenses. In 2025, this is particularly helpful in buyer-friendly markets across states like Wisconsin, Iowa, or Colorado. Plus, VA loans offer a cash-out refinance option, allowing you to access up to 100% of your home’s appraised value (minus fees) to pay off debt, fund home improvements, or cover other expenses.

Local Support from VA Loan Experts
Working with a local lender like the Joe Metzler Team at Cambria Mortgage ensures personalized service tailored to veterans. In 2025, their VA loan experts in Minnesota, Florida, and beyond provide competitive rates, low closing costs, and a stress-free process—outshining big online lenders. Whether you’re in Fargo, Sioux Falls, or Denver, a local VA loan officer can guide you every step of the way.

A Hassle-Free Path to Homeownership
With no down payment, lower rates, no PMI, and flexible credit requirements, VA loans in 2025 remain a cornerstone of financial empowerment for veterans. Ready to take advantage of these benefits?

Call Cambria Mortgage, the Joe Metzler Team at (651) 552-3681 or apply online right on this webiste to start your journey to homeownership today!

The post The Benefits of a VA Loan in 2025: A Game-Changer for Veterans appeared first on VA Mortgage MN.

As many people know, a recent settlement after several years of litigation, including class-action suits from home sellers and a legal battle with the U.S. Justice Department is dramatically changing the way Real Estate Agents do business, how they get paid, and how they charge commission fees for their services. As part of the settlement, the realtor group agreed to prohibit offers to compensate the buyer’s agent from being posted on multiple listing services (MLS), a practice that critics say reduced price competition and led to inflated commissions and home prices.

On a typical home sale, the agent listing the house would charge the seller a 6% listing fee. When the house sells, that 6% fee would be split between the selling real estate agent, and the buying real estate agent. A buyer would not paid their agent directly. Within the MLS (multiple listing service) listing for the house, the amount the buying agent would be paid for selling the home would be be listed.

According to the recently settled suit, the amounts paid to the buyers agent, being already pre-determined, is a form of antitrust, and pushing up commissions to the agents higher than the service they provided warrant.

Under the new rules, a buyer will need to negotiate with the buyers agent over what the buyer is willing to pay their agent for their services instead of the buyers agent getting an automatic split percentage.

Confused yet? Welcome to the club. There will be a lot of confusion with Real Estate Agents, buyers, and sellers for some time to come as a decades long practice changes.

As a VA home loan lender in CO, FL, IA, MN, ND, SD, and WI, or VA loan experts are staying on top of all the changes to help guide you to a successful, and stress free home purchase.

ENTER A VA LOAN

VA home loans, like many other loans, prohibit lenders and other third part loan service provides from charging certain, and excess fees to a veteran buying a home, or getting a home loan.

The U.S. Department of Veterans Affairs announced that eligible Veterans, active-duty service members, and surviving spouses who use the VA-guaranteed home loan benefit that the veteran can pay for certain real estate buyer-broker fees when purchasing a home beginning Aug. 10, 2024.

This will help ensure that Veterans remain competitive and are not disadvantaged on the homebuying market due to changes that may result from a key class-action settlement involving the National Association of REALTORS®.

Previously, Veterans could not pay their buyer-broker fees when using their home loans benefits.

The VA home loan program is a major benefit to our military personal interested in becoming homeowners. Created in 1944 as part of the Servicemen’s Readjustment Act — also known as the “G.I. Bill of Rights” — this program has provided over 28 million loans to Veterans to date.

“We always want to put Veterans and their families in the best possible position to buy the homes they want, and that’s what this update is all about,” said Under Secretary for Benefits Joshua Jacobs. “Veterans using VA home loan benefits can now pay reasonable and customary amounts for certain charges — including commissions and other broker-related fees — thus ensuring that VA home loans remain competitive in the rapidly changing housing market.”

VA will continue to monitor how the settlement affects the brokerage market and looks forward to pursuing a rulemaking, adding that veterans can and should still negotiate their buyer-broker fee. In addition, nothing in the settlement prevents Veteran home-buyers from asking sellers to pay the fees at closing, which has long been and continues to be, a viable practice under VA’s rules.

In addition to other safeguards, all buyer-broker fees charged to Veterans using the home loan benefit must be reasonable and customary within local markets.

The post VA Offers Updates because Of New Real Estate Agent Commission Rules appeared first on VA Mortgage MN.

What are mortgage closing costs?

When buying a home, everyone pretty much get’s the concept of down payment. But first time home buyers are typically shocked to learn about something known as closing costs.

So Exactly What Are Closing Costs?

These are additional costs required for the many services related to buying a house, even on VA loans. Examples of closings costs include appraisal, credit report, loan processing costs, title company/attorney fees, title insurance, along with state and/or county recording and deed taxes.  There are also optional items here, like if you choose to pay discount points to lower your loans interest rate.

You also have something known as pre-paid items. Examples of these including paying for your first years homeowners insurance policy up-front, and a one time pre-rated property taxes that vary greatly depending on how much the homes property taxes are, and what month of the year you are buying the home. Together these two main categories make up the term ‘closing costs’.

On a VA home loan, the VA limits some of the costs that can be charged, lowering the typical closing costs for a VA loan compared to any other home loan.

How Much Are Closing Costs?

You will hear many people say closing costs are 3% of the homes purchase price. This has never ever been true. These costs generally run from closer to 2% of the loan amount for big loans, and easily 5% of the loan amount for smaller loans.

So why the cost differences?  About half the closing costs are a set fee for every loan, regardless of the loan amount. For example, most appraisals, credit report, lender costs, and closing fee from the title company.  The other half of the costs are based on the loan amount. For example deed taxes, title insurance, and discount points.

Have more questions about closing costs, or want an exact quote? We have answers. Let’s talk.  (651) 552-3681, or Schedule an Appointment.

The post What are mortgage closing costs appeared first on VA Mortgage MN.

Online mortgage calculators are a convenient tool for getting a quick estimate of potential monthly payments and interest costs when considering a home loan. They allow users to input various factors such as loan amount, interest rate, and loan term to see how these variables can affect payments.

However, while these calculators provide a helpful starting point, they cannot replace the personalized service and expert advice of a licensed experienced mortgage Loan Officer.

Licensed Mortgage Loan Officers bring a wealth of knowledge about the mortgage process, can offer tailored loan options based on an individual’s unique financial situation, and guide borrowers through the complexities of home financing. They can also help navigate unexpected issues and work to secure the best possible loan terms. In essence, while online calculators offer a snapshot, a Loan Officer provides the full picture.

Joe and Eric Metzler at Cambria Mortgage in St Paul, MN., bring over 50-years worth of combined lending experience. If you’re ready to embark on the largest financial transaction of your life, don’t settle for less. Give yourself the expertise you deserve.

Call us at (651) 552-3681 or start your journey online. We’re proud to serve Minnesota, Colorado, Florida, Iowa, North Dakota, South Dakota, and Wisconsin with not just great VA Loans, all mortgage loan types, including conventional, FHA, USDA, etc.

Get your own personal mortgage qualifying review, it’s free, with no obligations.

The post Online Mortgage Calculator vs Licensed Loan Officer appeared first on VA Mortgage MN.

The post Waiting to buy a house? appeared first on VA Mortgage MN.

The post 4-years in a row, 2023 Best of St Paul Award for Mortgages appeared first on VA Mortgage MN.

Minneapolis, MN:  Inflation is the enemy of mortgage interest rates (and just about everything else too).  As rates are up, should I buy a home is a question I am getting daily.  The answer is yes, and here are a few reasons why:

HOME INVENTORY

Homes are NOT going to be getting any cheaper anytime soon. We still have a major housing shortage that has no signs of ending anytime soon.  People will always need housing. This will keep pressure on home prices.  We should not be seeing any realistic reduction in home prices. Homes are selling in one to two weeks, with a couple of offers. Historically, this is pretty awesome to sell a home in two weeks, but does feel different from the past few years when ultra low rates had homes selling within hours with multiple offers.

INTEREST RATE

Mortgage interest rates WILL come back down.  As you see the inflation numbers fall, you should see the rates fall too.  If you can make the payment today, there is a bit of a sting with conventional mortgage rates around 7%, but just realize you’ll very likely refinance to a better rate, probably in 2024, and probably into the upper 4’s.

On a $400,000 loan, going from a 7% rate today to 4.875% will lower your payment $545 a month, so you won’t have the higher payment forever.

Note that VA Loan rates are always just a little bit lower, and never have monthly mortgage insurance… True benefits for your service.

YOU NEED A PLACE TO LIVE

Rent versus own? Everyone needs a place to live. The benefits of homeowner are clear. No landlord, building equity, family memories, tax benefits, and more.

Renting isn’t any cheaper these days, and even if you rent, you are still paying a mortgage.  You are just paying someone else’s mortgage. Better to be paying your own.

FUTURE AFFORDABILITY

Ask your parents or grandparents what their mortgage payment was back in the day.  After you get off the floor laughing, realize that back then, they thought it was a high payment too.  I remember my first car loan payment.  My Dad was in shock, saying “That is higher than my house payment.”

But realistically, assume you get yearly small raises at just 3% to 5%.  Over just a few years of increased income, your affordability factor becomes better and better.  Someday your grandkids will be laughing when you tell them your payment today.

Of course homeownership isn’t for everyone.  But if you are even thinking about it, reach out t our licensed and experienced VA Loans experts at (651) 552-3681 for a confidential review of your situation and home buying power. Better yet, just click is APPLY link to get started.

The post Rates are Up, should I still buy a home? appeared first on VA Mortgage MN.

The post Inflation, recession, high rates… What is the truth past the headlines? appeared first on VA Mortgage MN.

Minneapolis, MN: Congratulations, you’ve decided you want to buy a home and use one of your best VA benefit, the VA home Loan.

As you begin working with the real estate agent, they shock you by talking about your chances of getting your purchase offer accepted with a VA Loan in today’s sellers market is low, and that a VA loan puts you at a competitive disadvantage. They will usually even ask “can you switch to a conventional loan instead?”

If they say this, IMMEDIATELY FIRE THE AGENT!

Unfortunately, few real estate agent out there understands how awesome VA loans are, resulting is a lot of ignorance and unjust fear within the real estate agent community, giving them an undue bias towards VA loans and our military personal.

Why VA Loan Bias By Real Estate Agents?

Most real estate agents have never had a single issue with someone using their VA loan. Most never will. Many have only heard probably extremely over exaggerated water cooler talk about some horror story some other agent had in the past.

Many agents incorrectly assume just because you may be putting zero down, somehow the loan won’t close. Not sure why agents think this, as VA loans pre-approvals close at basically the exact same rate as any other loan.

VA Home Loan Requirements

Many agents also assume that VA appraisal requirements will kill the deal because the appraiser will call for a repair to the home. While it is true that any government backed loan, including FHA, USDA, and VA loans, have a little stronger threshold versus conventional loans towards the homes condition, most repair orders we see are extremely minor. A little bit of peeling paint needing to be fixed is by far the most common issue.

I can not tell you how many times a listing agent has automatically rejected a VA Loan offer because of possible repairs. Then when I ask “what is wrong with the house?” they reply nothing!

Minor repair items that are commonly called out for repair on government backed loans are things that any good listing agent should be advising the sellers to repair before the house goes on the market to ensure the seller is casting the widest net of potential buyers. Of course minor repair items are very different than if the house is a major fixer-upper in need of a lot of repair.

Another agent misconception is that conventional loans allow for anything goes for the homes condition. While conventional financing may overlook minor items, conventional loans get called for repairs all the time for major items too.

Fair Housing Complaints

Needless to say, many of our military personal have been denied the opportunity to purchase a house simply based off real estate agent bias towards VA Loans. I am happy to report that finally we are starting to see and hear about litigation and fair housing lawsuits that have arisen from sellers and listing agents automatic bias towards our military personal. Maybe threat of lawsuits will finally scare them straight?

The Right Agent For Your VA Loan

Generally speaking, working with a VA loan buyer, real estate agents need to be a true advocate for VA Loans. They usually requires a little more time and patience on the buyer agent’s part as they need to educate way too many listing agents. My experience is that real estate agents who are also former US Military are the best agents to have on your side when using your VA home loan benefits, but any agent with a good understanding of VA loans is probably OK too.

If you are a veteran buying a home in my backyard, the Minneapolis, St Paul, Minnesota area, I’ve worked with some excellent agents who get VA loan offers accepted, and would be happy to refer them to you.

In other parts of the country, be sure to interview any agent you may think about using about their thoughts on VA loans.

The post Choosing The Right Real Estate Agent for Your VA Loan appeared first on VA Mortgage MN.

The post Succeeding in a Seller’s Market: We have an App for That appeared first on VA Mortgage MN.