Credit unions and The American Dream: Expanding homeownership for our nation’s heroes

June is National Homeownership Month—a time when we celebrate the profound impact of owning a home on family stability, economic mobility, and community development. But it’s also a moment to ask: Are we doing enough to ensure every American, especially those who wore the uniform, can share in this dream?

At the Defense Credit Union Council (DCUC), we believe homeownership should be attainable for every veteran, service member, and military family. We work every day to remove financial and institutional barriers that prevent this, and we proudly support new legislation like the VA Home Loan Awareness Act of 2025—a vital step forward for those who’ve served our country.

Credit Unions: Built to Serve, Designed for Access

Credit unions are unique. As not-for-profit, member-owned financial cooperatives, our mission has never been to maximize profits, but to maximize service. Every dollar earned is returned to our members in the form of lower rates, better terms, and personalized support.

Defense credit unions go even further. Located on or near military installations, or serving veterans through field of membership eligibility, these institutions are often the first and only trusted financial partner for our military families. They understand military pay schedules, the stress of deployment, and the complicated logistics of permanent change-of-station (PCS) moves. They are experts in tailoring products to the military lifestyle, including affordable, accessible mortgage loans.

VA Loans: A Powerful Tool Underutilized

The VA Home Loan program offers no-down-payment options, no private mortgage insurance (PMI), capped closing costs, and favorable interest rates—all critical advantages for military borrowers. But only 13% of eligible veterans use the program. That’s not because they don’t want to—it’s because many don’t know they qualify. Others are discouraged by real estate professionals or lenders who fail to mention VA loans or inaccurately suggest they’re harder to close.

This must change. We cannot allow misinformation or lack of awareness to block veterans from a benefit they earned in service to our country.

DCUC Supports the VA Home Loan Awareness Act

To help solve this problem, DCUC strongly supports the VA Home Loan Awareness Act of 2025, introduced by Senator Tim Sheehy (R-MT) and Representative Monica De La Cruz (R-TX). This bipartisan bill requires a simple—but powerful—disclosure on the Uniform Residential Loan Application (URLA) to notify eligible applicants that they may qualify for a VA loan. It also calls on the Government Accountability Office (GAO) to evaluate how effectively this disclosure is being implemented.

This is exactly the kind of practical, bipartisan solution veterans need. It doesn't add cost. It doesn’t impose burdensome regulations. It just helps ensure that those who’ve earned this benefit are aware of it.

Growing Bipartisan Support in Congress

In the Senate, co-sponsors include:

House co-sponsors include:

DCUC applauds every member of Congress supporting this bill and urges its swift passage.

Defense Credit Unions Deliver Real Solutions

While Congress debates legislation, defense credit unions are already acting. Across the country, these institutions are helping service members and veterans navigate the path to homeownership through targeted programs and member-first policies. Here are just a few of the ways they’re doing it:

1. Zero-Down VA Loan Programs

Many defense credit unions streamline access to VA home loans with no down payment, no PMI, and competitive interest rates. Credit unions like Navy Federal, PenFed, and Service Credit Union offer specialized VA mortgage products designed to simplify the process and eliminate unnecessary fees or delays.

2. First-Time Homebuyer Grants

Some defense credit unions provide down payment assistance grants or first-time homebuyer programs, especially for young service members and junior enlisted families. These grants often do not need to be repaid and help bridge the affordability gap in high-cost housing markets near bases.

3. Financial Counseling and Education

Through robust financial literacy programs, defense credit unions offer classes, one-on-one consultations, and housing counseling to help members improve credit scores, understand the loan process, and avoid predatory lenders. Institutions like Fort Hood Area CU and Andrews Federal have dedicated staff certified in VA lending and housing counseling.

4. Affordable Construction and Manufactured Housing Loans

Recognizing the housing shortages near some bases, many credit unions support affordable housing construction and manufactured home loans, particularly in rural or underserved markets. Some credit unions partner with developers or CDFIs to expand access to sustainable, cost-effective housing.

5. Access to the Federal Home Loan Bank (FHLB) Affordable Housing Program

Many defense credit unions utilize the FHLB’s Affordable Housing Program (AHP) to provide subsidies that reduce the cost of homeownership for low- and moderate-income military families. These funds can help cover closing costs, rehabilitation, or gap financing.

6. PCS Bridge Loans and Military Relocation Mortgages

Understanding the timing challenges of military moves, some defense credit unions offer PCS bridge loans or no-penalty refinancing for members forced to relocate due to orders. These products are uniquely designed for military life and are rarely found at traditional banks.

More Than Loans: Credit Unions as Housing Advocates

DCUC doesn’t just advocate for better loan terms—we fight for policies that reflect the lived experiences of military families. We’ve submitted comments to the VA, HUD, and NCUA supporting simplified VA appraisal timelines, elimination of unnecessary red tape, and expansion of housing counseling access on base.

We’ve also defended credit union authority to accept public funds, which would allow more institutions, especially those near bases, to fund housing and infrastructure projects that support readiness and economic security.

Call to Action

On this National Homeownership Month, DCUC urges policymakers, lenders, and housing professionals to come together to support those who serve. We call on Congress to:

And we call on veterans, active-duty personnel, and their families: Ask your credit union about your home loan benefits. You may be eligible for more than you realize.

Conclusion

Credit unions were built to help everyday Americans succeed. Defense credit unions are built to help those who defend us succeed. With targeted mortgage products, personalized support, and a deep commitment to our mission, we are proud to champion affordable homeownership for military families.

As Congress considers the next steps in housing policy, DCUC will be there, making sure veterans are not just remembered but empowered to thrive.