If you’re planning a PCS to Luke AFB or planning a move to the Phoenix West Valley, the VA Home Loan is one of the most powerful tools available to active-duty families, veterans, and qualifying surviving spouses. Here’s the updated 2025 breakdown — in plain language — so you can buy confidently and avoid common mistakes.

1. No Down Payment — How It Actually Works (and Why It Matters Right Now)

One of the biggest advantages of the VA Home Loan is the $0 down payment requirement.

What this means:

Most conventional buyers need 5%–20% down.
With today’s West Valley home prices ($420K–$550K average depending on city), that’s:

• $21,000–$110,000 out of pocket.

With a VA Loan:

• You can purchase with $0 down and keep your savings intact for PCS costs, household needs, or emergency funds.
• Your monthly payment stays manageable because you’re not financing a huge down payment gap.

Why this matters for Luke AFB:
Military buyers move frequently — and often on tight timelines. Zero down gives you speed, flexibility, and cash preservation, which is critical during PCS season.

2. No PMI — A Huge Monthly Savings Most Buyers Never Get

PMI (Private Mortgage Insurance) is an extra monthly fee conventional buyers pay if they don’t put at least 20% down.

Example:

A conventional buyer purchasing a $450,000 home with 5% down might pay:

• $250–$450 per month in PMI.

With a VA Loan:

• There is NO PMI.
• Ever.
• You do have a one-time VA Funding Fee that is lumped onto your loan balance; it is a percentage of the purchase price and is discounted the first time you use the VA Home Loan.

This structure can save you $3,000–$6,000 per year for YEARS— and directly increases your buying power.

3. The VA Funding Fee — What It Is & How It Works in 2025

Instead of PMI, the VA program uses a one-time funding fee.

2025 VA Funding Fee Rates (Typical):

• 0% down, first use: 2.15%
• 0% down, subsequent use: 3.30%

But here’s the key:

• You can roll it into the loan
• Many buyers don’t pay this out of pocket
• Disabled veterans often have the fee waived entirely

4. More Flexible Lending Requirements (But Not “Easy Approvals”)

Another VA advantage is more flexible qualification standards. It does NOT mean automatic approval — but it does mean:

• Lower minimum credit score requirements
• More leniency on past financial events (late payments, past challenges, etc.)
• Higher allowable debt-to-income ratios
• Ability to use Basic Allowance for Housing (BAH) to qualify

Why this matters:

Military families often have:

• High cost-of-living moves
• Temporary dual housing
• Previous PCS credit hits
• Shorter credit histories (especially young service members)

The VA system is built to support those realities — not punish them.

5. VA Interest Rates Are Often Lower Than Conventional Loans

As of 2025, VA rates consistently trend 0.25%–0.75% lower than conventional mortgages.

Why?

VA-backed loans carry less risk for lenders, because the Department of Veterans Affairs guarantees a portion of the loan.

Why this matters:

On a $450,000 home, a rate difference of even 0.50% can mean:

• $150–$250/month in savings
• $30,000–$50,000 saved over the life of the loan

This is especially impactful for Luke AFB buyers where the market is competitive and affordability matters.

6. You Can Use Your VA Home Loan Benefit More Than Once

A lot of buyers still believe the VA loan is a “one-and-done” tool. That’s outdated info.

Current (2025) VA Rules:

You can use your VA entitlement:

• Multiple times
• Even if you’ve defaulted before
• Even if you’re not done paying off a previous VA loan (with partial entitlement rules)

Ideal scenarios for Luke AFB buyers:

• You bought a home at your last duty station → PCS to Arizona → use your VA loan again.
• You sell your previous home → regain full entitlement → buy again with $0 down.
• You keep your previous home as a rental → use remaining entitlement to buy in AZ.

7. “House Stacking”: How Military Families Build Wealth Through PCS Moves

“House stacking” is the strategy of buying a home at each duty station, then turning it into a rental when you PCS.

Over a 10–20 year career, this creates:

• Long-term cash flow
• Equity growth
• Tax benefits
• A retirement portfolio funded primarily with BAH
• A plan for passive income after military separation

I published a whole book outlining exactly how you can go about doing this and building wealth through your military service. Check out more information here or order your copy on Amazon.

Example Scenario:

Year 1 (Luke AFB):

• Buy with $0 down
• PCS 3 years later → rent it out
• Explore popular communities near Luke AFB

Year 4 (Hill AFB):

• Use remaining entitlement for second VA purchase
• Build equity while renting the first home

Year 8 (New PCS):

• Repeat

This creates multi-property ownership with minimal cash out of pocket — and it remains one of the most powerful financial tools available to military families.

There are some ways to really maximize it and keep more money in your pocket throughout, check out the book or other posts for more details.

8. Who Actually Qualifies for a VA Home Loan in 2026?

To qualify, you typically need one of the following:

• 90 days of active-duty wartime service
• 181 days of peacetime active service
• 6 years in the National Guard or Reserves
• Qualifying surviving spouse

If you’re unsure — we confirm eligibility for you.

9. Common VA Home Loan Myths (That Hurt Buyers If You Believe Them)

❌ “Not many sellers accept VA buyers.”
→ Completely outdated. We close VA deals weekly near Luke AFB.

❌ “You can only use your VA loan once.”
→ You can use it multiple times.

❌ “VA loans take longer.”
→ With the right agent/lender team, they close as fast as conventional.

❌ “VA loans mean lower-quality buyers.”
→ Active-duty families have some of the strongest payment histories in the nation.

10. What It’s Like to Buy with a VA Loan Around Luke AFB

The West Valley (Surprise, Goodyear, Litchfield Park, Buckeye, Waddell, Glendale, Peoria) is one of the top relocation destinations for military families right now.

Our team specializes in:

• PCS timelines
• BAH strategy
• Sight-unseen purchases
• Temporary housing planning
• New construction vs. resale strategy
• Neighborhood matching that fits commute + lifestyle

You get clarity, confidence, and a plan that feels doable for military home buying — even if your reporting date is tight. Check out our PCS Checklist here.

Need Clarity on Your VA Loan Benefits or PCS Move?

Buying with a VA loan is simple — when you have the right guidance.

Let’s talk through your BAH, timeline, duty station expectations, and buying strategy.

👉 Schedule a strategy call

We’ll help you buy smarter, move with confidence, and build long-term wealth through PCS planning.