When a disabled Veteran came to AAFMAA Mortgage Services LLC (AMS) hoping to buy a home near her child’s school, the challenge was familiar to Fay Silverman. As manager of AMS’s Virginia Beach branch, Silverman has spent nearly four decades helping first-time homebuyers and military families navigate tight budgets, strict qualification standards, and competitive housing markets.
In this case, the borrower had steady employment, a child she wanted to keep in the same school system, and the VA Home Loan benefit at her disposal. What she did not have was unlimited cash for closing or much room in her monthly budget. Silverman’s task was to find a structure that preserved that stability without stretching the borrower’s budget too thin.
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Building a Smarter VA Home Loan Strategy with Targeted Grant Support
Instead of defaulting to a single option, Silverman worked up several. She compared a standard VA Home Loan with scenarios that layered in a 2% grant offered through Virginia Housing, the state’s housing finance agency, for eligible Veterans buying a home in Virginia. The grant can be used for closing costs or to buy down the interest rate, and it does not require repayment.
Side by side, the numbers told a clear story. With the 2% grant layered onto the VA Home Loan, the borrower’s cash needed to close was lower and her interest rate was about an eighth of a percentage point below the straight VA Home Loan scenario. That combination shaved the monthly payment and freed up funds the borrower would otherwise have needed to bring to the closing table. Just as important, it strengthened her offers in a competitive market, allowing her to request less in seller-paid closing costs or direct more of the grant toward a permanent rate buydown.
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Experience in Affordability Programs Shapes a Client-First Approach
For Silverman, who has long focused on first-time homebuyer and affordability programs, this kind of tailoring is not an exception. It is her goal. Over the years she has served on the Virginia Beach Affordable Housing Commission and on the lender advisory board for what was then the Virginia Housing Development Authority, now Virginia Housing. She has taught homebuyer education classes, advocated for responsible use of assistance programs, and watched those programs evolve to address changing market conditions.
Virginia Housing’s offerings reflect that evolution. Virginia Housing offers a variety of programs with income and sales price limits that vary by geography. These programs are designed to support first-time buyers, repeat buyers with lower incomes and, importantly for AMS borrowers, Veterans.
While these programs add some paperwork and internal processes for lenders, Silverman views them as essential tools. Many city-run down payment assistance initiatives, for example, prefer to pair their funds with a Virginia Housing first mortgage because the agency vets participating lenders and enforces consumer-focused guidelines. That oversight gives local governments confidence that borrowers are not being overcharged or steered into unsustainable products. For military families, who may already be juggling complex benefit structures and relocation timelines, that added layer of protection matters.
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A Growing National Landscape of Homeownership Programs
Silverman’s experience in Virginia reflects a broader national shift. As of the second quarter of 2026, there are 2,746 homeownership programs identified across the country, a new high and an increase of 67 programs from the previous quarter. Of those, 2,114 programs are active and funded, offering immediate potential support for homebuyers.
For military borrowers, the implications are significant. VA Home Loans already offer powerful benefits, such as no down payment in many cases, no mortgage insurance and competitive rates, but they do not necessarily eliminate all upfront costs or guarantee the most affordable monthly payment. VA Home Loans may require a VA funding fee unless the military borrower is exempt from the funding fee. Layering in down payment assistance, closing cost support or rate buydowns can lower the loan-to-value ratio, reduce cash to close and, as in Silverman’s recent example, nudge the rate lower. That in turn can help borrowers qualify more comfortably, reserve savings for emergencies or make stronger offers in multiple-bid situations near bases or in high-demand school districts.
Contrary to common assumptions, many of these programs are not reserved exclusively for very low-income borrowers. Sixty-two percent allow income limits above $100,000, and 291 programs, or about 11%, have no income restrictions at all. That matters for dual-income military households, higher-ranking servicemembers, and Veterans transitioning into well-paying civilian roles who still face affordability pressures in expensive markets. Rather than niche products, these programs function as mainstream financial tools that can be calibrated to a wide range of incomes and needs.
From Silverman’s vantage point at AMS, the thread running through these developments is simple: choice. Every borrower arrives with a unique mix of service history, income, obligations and goals. Some are active-duty servicemembers eyeing their first home off base. Others are Veterans rebuilding after a deployment, seeking stability for their children, or caring for aging parents. A strong VA Home Loan program lays the foundation, but it is the strategic use of additional homeownership programs that often closes the gap between what is technically possible and what is truly sustainable.
We’re Here to Help
Thinking about buying, ready to start home shopping in earnest, or considering a refinance? An AMS Military Mortgage Advisor, a licensed mortgage loan originator, will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.
Ensuring Armed Forces Mutual Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!