In partnership with
The Better Veteran
Maximize Your Benefits. Optimize Your Life.
March 2, 2026
When veterans, or active service members, think the VA loan they think: “0% down and I get a house? Good enough for me. I don’t need to hear anything more.” And in fairness, that is the biggest hook. It takes away the largest barrier to entry of homeownership that the rest of the population faces.
The conventional home loan requires 20% down upfront. The VA loan, other than the 0% down, also affords most buyers a lower interest rate as well. So what if you put 20% down using a VA loan, surely that would be the best of both worlds, right?
Right spirit, wrong execution. That’s what I did and now I’m finding out with my own creation how foolish it was. Are these the consequences of my own actions?
The real reason the VA loan is so powerful has little to do with affordability. It's about what happens to the cash you didn't put down.
And hopefully you can have all of the answers right in front of you whenever you’re thinking about purchasing a new home much easier than before.
I Built a Tool That Told Me How Wrong I Was
I just launched the VA vs FHA vs Conventional Wealth Simulator -- a free calculator that compares all three major loan types side by side, factoring in something most mortgage calculators completely ignore.
It accounts for veteran property tax exemptions in all 50 states (this was very annoying to aggregate, some states have finicky county by county rules, but it’s there). It shows you monthly costs, cash to close, and a full timeline of your total cost of ownership.
Just enter your information and the loan term information along with some assumptions and you’ll give the tool everything that it needs to calculate what would be best for your situation.
Note: Estimates, of course. Reach out to your lender for the most accurate information
But the thing that makes it different is one variable: the opportunity cost of your down payment.
Most calculators compare monthly payments and stop there. Ours asks a harder question: what if you invested that down payment instead of locking it in your house?
That one question changes the calculus of everything and makes a lower monthly mortgage payment become minuscule when you zoom out.
Check out your monthly comparisons for a snap shot, but scroll down to the bottom for the final summary of the whole picture.
At the bottom of the calculator it will give you a summary of your bottom line with the information that you provided it. The way that we calculated the outcomes are provided.
My $235,000 Mistake
I own a home in Florida. I bought it for $322,000 and I'm rated 100% P&T, so my property taxes are fully exempt. I used my VA loan — which was the right call, but I put 20% down. So I was only halfway smart.
I thought I was being smart. Lower monthly payment. Less interest over time. Felt responsible. In my short-sightedness I was thinking by combining my lower interest rate and using 20% down I could get my monthly lower and treat it like a conventional loan. I missed a few key factors that I now understand from this calculator.
I was enlisted, ok? Losing six figures in real estate and buying a used dodge challenger at 23% APR is in the very fabric of who I am.
I honestly never thought of it again… until I was building this out and ran my own numbers. You can imagine my dismay.
If I had put $0 down and invested that $64,400 in the S&P 500 at 7% annual returns, here's what would have happened over 30 years:
$64,400 invested in the market → $490,229
$64,400 sitting in home equity (average 3.5% returns) → $180,758
Difference: $309,471 in lost growth
Yes, my monthly payments would be $139,000 higher over 30 years. But I'd also keep the $64,400 I didn't put down. So my net extra cost is only about $75,000. Meanwhile, that invested cash grows by $309,000 more than the equity would. Net benefit: $235,000.
Lowering my monthly payment cost me $235,000.
I left $235,000 on the table….
…I’m going to be sick…
Every headline satisfies an opinion. Except ours.
Remember when the news was about what happened, not how to feel about it? 1440's Daily Digest is bringing that back. Every morning, they sift through 100+ sources to deliver a concise, unbiased briefing — no pundits, no paywalls, no politics. Just the facts, all in five minutes. For free.
What 216,000 Scenarios Tell Us
I didn't just run my numbers. I ran every realistic combination — different home prices, interest rates, down payments, disability ratings, and time horizons. 216,000 scenarios total (re: I bullied Claude and Gemini to run them for me).
VA wins 77% of the time.
But here's the nuance that matters:
By investment return rate:
At a conservative 4% return: VA wins 59% — still ahead, but it's competitive
At 7% return (our baseline): VA wins 80%
At 10% return (S&P historical average): VA wins 93%
By VA rate premium:
Same rate as conventional: VA wins 90%
VA rate 0.5% higher: VA wins 74%
VA rate 1.5% higher: It's basically a coin flip (41% VA, 43% Conv)
VA rate 2%+ higher: Conventional wins 60%
FHA? It wins just 9.4% of scenarios. The lifetime mortgage insurance premium at 3.5% down is a wealth destroyer. FHA is rarely the best financial move for a veteran who qualifies for VA.
When VA Actually Loses
This isn't propaganda (like many of the VA loan course sellers will make it seem). The tool will show you exactly when conventional or FHA wins. VA loses when:
Your VA rate is significantly higher — if you're getting quoted 1.5%+ above conventional rates, run the numbers carefully
Market returns are low — if you're earning less than 6% on your investments, the math tightens up
You don't invest the saved cash — if you spend the money you didn't put down instead of investing it, the advantage evaporates completely
That last one is the most important. The VA loan's dominance depends on one behavioral choice: you have to actually invest the money you save.
Put it in an index fund. A Roth IRA. A brokerage account. Gold. Bitcoin. The specific vehicle matters less than the discipline of putting the cash to work instead of spending it.
This isn’t financial advice, obviously. The point is that literally doing anything with that money other than letting it sit in a checking account, or wasting it on a 20% down payment like some people (me), is better.
Meet with your financial advisor to go over your options.
The Real Power of the VA Loan: Strategic Flexibility
The $0 down advantage is the headline. But veterans have other moves most people don't talk about:
The IRRRL refinance. If rates drop after you buy, the VA Interest Rate Reduction Refinance Loan lets you refinance with minimal paperwork, no appraisal, and minimal out-of-pocket costs. Conventional refinances require full underwriting. This means even if VA rates are higher today, you can capture lower rates tomorrow with almost no friction.
The multi-property play. A veteran I shared the tool with who owns multiple properties asked me about using FHA for his next purchase. Here's how the strategy works:
Buy Property A with your VA loan. Move in within 60 days.
Live there for about 12 months (satisfying the occupancy intent requirement).
Buy Property B — either with remaining VA entitlement, FHA, or conventional. Move into Property B.
Property A becomes a rental generating cash flow.
You can have multiple VA loans simultaneously if you have remaining entitlement. The occupancy requirement is per-property, not per-borrower. And if you've already used your VA entitlement, FHA becomes the next option to compare — which is exactly why the tool includes all three loan types.
Edge Cases Worth Knowing
VA Construction Loans. Yes, the VA offers one-time close construction loans so you can build your own home with VA benefits. Few lenders offer them, but they exist. If you're considering new construction, ask your lender specifically about VA construction financing.
VA Renovation Loans. Similar concept — you can finance certain repairs and improvements into your VA loan. Again, not widely advertised, but available.
Both of these are "talk to your lender" products. The calculator doesn't cover them, but you should know they exist.
See It for Yourself
Don't take my word for any of this. Plug in your numbers:
Enter your home price, your state, your disability rating, and the rates you've been quoted. The tool does the rest — including state-specific veteran property tax exemptions that most veterans don't even know they have.
What scenario surprised you the most? Hit reply and tell me. I read every response.
Talk soon
Stay informed. Stay empowered. -- The Better Veteran Team
This newsletter is for informational purposes only and does not constitute legal, financial, or medical advice. Always verify with official VA sources and consult qualified professionals.
