High mortgage rates, elevated home prices, and limited inventory are still creating obstacles for prospective buyers. But veterans and service members appear increasingly unwilling to wait for the market to improve before making a move.
Forty-three percent of veteran and service-member respondents plan to purchase a home within the next six months, nearly twice the 22% share among civilian respondents, according to Veterans United Home Loans’ Q2 2026 State of Mind Survey.
The findings suggest military-affiliated buyers could represent a particularly active segment of the purchase market during the second half of the year. Their financial confidence has risen even as civilian buyers report greater stress.
“Buyers aren’t waiting for the market to feel perfect,” said Chris Birk, vice president of mortgage insight at Veterans United. “They’re feeling better about their finances, finding ways to navigate affordability challenges, and moving forward on timelines that work for them.”
Veterans Report Growing Financial Confidence
Financial stress among surveyed veterans and service members fell eight percentage points from the first quarter to 19%, the largest single-quarter improvement recorded during the survey’s three-year history. By comparison, financial stress among civilian respondents rose eight points to 38%.
The contrast was equally pronounced among respondents who said they felt comfortable with their finances. Fifty-four percent of military-affiliated buyers said they felt at ease, compared with 38% of civilian buyers.
Veterans United’s Personal Financial Outlook Score for veteran and service-member respondents reached 47, near the highest level recorded since the survey began in 2023. The comparable score for civilians was 26.
That confidence is carrying into purchase plans. Veterans United’s Homebuyer Timeframe Score for military-affiliated respondents rose from 69 in the first quarter to 72 in the second quarter, its highest level since the company began tracking the measure.
The score evaluates whether prospective buyers intend to purchase and how soon they expect to act.
Across the full survey population, 73% said they plan to purchase within the next year. Among those expecting to buy during that period, 19% intend to purchase within three months. The share targeting the seven- to 12-month window rose to 37%, up from 34% a year earlier.
Affordability Hasn’t Stopped Being A Problem
Greater readiness does not mean buyers believe market conditions have become easy.
High home prices were the most frequently cited purchase barrier, identified by 46% of respondents. High mortgage rates followed at 43%, while 20% pointed to limited housing inventory. First-time buyers reported greater pressure from all three barriers than repeat buyers.
Instead of waiting for those conditions to change, some prospective buyers appear to be adjusting their strategies. Forty-one percent of all respondents said they would prefer to buy now and refinance later rather than delay a purchase. That share rose to 47% among veterans and service members.
For originators, that creates an opening to discuss the financing tools available to eligible military borrowers, including the Department of Veterans Affairs’ interest rate reduction refinance loan, commonly known as the VA streamline refinance.
But “buy now, refinance later” is not a guarantee. Future rates, eligibility requirements, closing costs, loan seasoning rules, and the borrower’s financial circumstances will determine whether a refinance eventually makes sense. The immediate purchase must still be affordable based on the borrower’s current payment and finances.
Buyers Are Consulting AI Before Originators
Military-affiliated buyers are not only moving faster. Many are using artificial intelligence to prepare financially before entering the market.
Forty-five percent of all prospective buyers surveyed said they had used AI during the homebuying process, up from 40% in the first quarter and the fourth consecutive quarterly increase.
Property-value research was the most common use, cited by 41% of AI users. Another 36% used the technology to learn about housing-market trends, while 32% used it to search for homes matching specific criteria.
Veterans and service members were more likely than civilians to use AI for financial preparation. Among military-affiliated buyers using the technology, 52% used it for savings planning and 38% sought credit-improvement guidance. That compared with 46% and 34%, respectively, among civilian users.
ChatGPT and Google’s Gemini were the most commonly used tools for general homebuying questions, according to Veterans United.
Still, buyers did not indicate that they were ready to turn the transaction over to an algorithm. Seventy-seven percent agreed that AI should support the homebuying process rather than serve as its primary decision-maker.
Veterans United’s survey was conducted June 1–17 by Sparketing and included 859 prospective homebuyers. Respondents included veterans, active-duty service members, reservists, National Guard members, and civilians. The lender did not disclose the sizes of the military-affiliated and civilian subgroups in the published methodology.
