I'm not sure I understand the whole no money down thing. If you put less money down, then that means that the monthly payment is higher? That's really what's making homes unaffordable. If you can't put 10-20% down or whatever is recommended, then maybe the house just isn't affordable.
The down payment is actually a big issue for many. You can be making enough that you could afford the higher payment, but waiting 5 years to build a down payment could see huge price surges, thus extending how long you need to save.
Do you have to be a veteran to get a loan from the VA? If so, what about people like me who weren't in the military? Especially people like me who were never eligible to even join the military because of a childhood illness?
Look into FHA loans.
Yes you have to be a veteran to qualify for VA loans.
"No money down" - Sounds too goo to be true, doesn't it?
No, it’s how a lot of people get their start. There’s also the FHA loan where people put down 3.5%.
Difference is VA loans do not pay PMI.
That's how I bought my house. No money down, 2.65% mortgage
It’s absolutely not to good to be true, it’s one of the best benefits available to veterans. I actually got paid to close with my VA loan (basically a negative down payment). This was a few years ago so the market was different, but it wasn’t uncommon to request e.g. some percent of the purchase price as seller concessions. If the total down payment is 0, anything over closing costs can get paid out to you.