In recognition of Veterans Day, Realtor.com released research showing the impact of Veterans Affairs (VA) loans on homeownership. Over the past year, more than 74% of VA loan home purchases required no down payment, and nearly 84% of these loans required less than a 10% down payment. For veterans, VA loans offer critical support by reducing upfront costs, making homeownership more accessible compared to traditional loans.
According to Realtor.com’s Chief Economist Danielle Hale, comparing VA loan data with conventional loans reveals key benefits for veterans and the industry professionals serving them. “VA loans offer veterans significant financial advantages, yet only 30% of veterans and active-duty service members are aware of the zero down payment benefit,” Hale said, referencing a Veterans United Home Loans survey. "With this research, we aim to inform veterans about the benefits of VA loans, empowering them to make decisions that support their financial well-being and homeownership goals."
VA loans also reduce monthly expenses. For instance, first-time homebuyers using VA loans with zero down payment can save approximately $69 per month, or $824 annually, compared to a similar conventional loan with an 8% down payment. Lower interest rates and fees for VA loans lead to more affordable monthly payments, helping military families build equity more quickly.
Military households have a homeownership rate of 77.3% in major U.S. metros, an 8.5% higher rate than their non-military counterparts. Cities like Myrtle Beach, S.C., Des Moines, Iowa, and Deltona, Fla., lead in military homeownership rates, while Urban Honolulu, San Diego, and El Paso have the lowest. Markets like Stockton, Calif., and Buffalo, N.Y. show the largest homeownership rate increases for military households. This research underlines the enduring impact of VA loans in helping veterans achieve homeownership.
