A new report from Rocket Mortgage points to a persistent awareness gap around VA loans, even as affordability pressures continue to sideline many would-be homebuyers.
According to the company, fewer than half (48%) of eligible service members consider using a VA loan, despite the program’s ability to eliminate some of the biggest upfront and monthly cost barriers to homeownership. Awareness of those benefits remains uneven: only 54% of respondents know VA loans require no down payment, and just 39% realize they do not require private mortgage insurance (PMI).
That knowledge gap carries real financial consequences. Rocket Mortgage estimates the median savings from using a VA loan instead of a comparable conventional loan with PMI reached $10,600 in 2025.
Key Benefits Still Underutilized
VA loans are designed to remove common affordability hurdles for active-duty service members and veterans, including:
- No down payment requirement
- No monthly PMI
- More flexible credit standards
“With zero down payment, no monthly mortgage insurance requirements, and flexible credit standards, VA loans address some of the most challenging financial hurdles active and retired military home buyers face,” said Eileen Tu, vice president of product development at Rocket Mortgage. “That combination can significantly reduce both upfront costs and monthly payments by thousands of dollars, making homeownership more achievable for millions of Americans.”
In 2025, 70% of VA purchase loans were made with no down payment, underscoring how borrowers who do understand the product are leveraging it to overcome affordability constraints.
Awareness Gap Extends Beyond VA Loans
The issue isn’t limited to VA financing. Only 16% of military members report familiarity with state-level housing programs designed specifically to support the military community, another signal that eligible borrowers may be leaving multiple layers of assistance untapped.
While national awareness remains limited, adoption varies widely in markets with strong military presence.
- In Tampa, Florida, roughly 40% of homebuyers used VA financing from 2023 to 2025
- In Portland, Oregon, VA-backed purchases have grown from near zero in the early 2010s to more than 6% of home sales today
The disparity suggests that local education efforts — from lenders, brokers, and real estate professionals — can materially influence VA loan utilization.
Beyond financing, affordability and access remain central to where veterans choose to live. Health care access (24%) and cost of living (23%) rank as the top decision drivers, while 61% say they are likely to remain near where they were stationed.
What It Means
For mortgage professionals, the takeaway is clear: this is less a demand problem and more a conversion and education gap.
Eligible borrowers exist, and many could qualify under VA’s more flexible credit standards, but a lack of awareness continues to prevent them from entering the pipeline or choosing the most cost-effective option.
“For millions of veterans and military families, the path to homeownership is not restricted by a lack of demand, but by gaps in awareness,” Tu said.
For LOs, that creates a tangible opportunity to drive production by leading with education, particularly around:
- Zero-down eligibility
- Monthly payment savings without PMI
- Qualification flexibility compared to conventional loans
- Overlooked state and local military housing programs
In a market where affordability is the primary constraint, closing that knowledge gap could help reach a significant number of qualified, underserved borrowers and convert missed savings into closed loans.
