A new survey from NewDay USA highlights a familiar dynamic in today’s housing market: strong demand for homeownership among veterans and service members, paired with persistent affordability barriers that continue to delay purchases.
According to the company’s 2026 Military Homebuyer Readiness Survey, 68% of non-homeowning respondents said buying a home is a major life milestone or one of the most important milestones in their lives. At the same time, only 7% said they feel completely ready to purchase a home this year, and 49% said homeownership feels out of reach.
The survey, conducted by Researchscape, polled 1,238 current and former U.S. service members between Feb. 18 and March 7.
Among those who have used a VA home loan, satisfaction levels remain high. Nearly all respondents (98%) said they were satisfied with their experience, while 47% said they would not have been able to purchase a home without the benefit.
Still, affordability pressures continue to weigh on prospective buyers. Among non-homeowners, 62% cited rising home prices as a primary barrier, followed by lack of income (55%) and the challenge of saving for upfront costs (49%).
That cost burden appears to extend beyond down payments. While VA loans are widely known for offering no down payment, 45% of respondents said they do not have enough savings to cover closing costs. Forty percent said they would be more likely to buy a home if both down payment and closing costs were eliminated.
Debt levels are also a factor. More than half of respondents (52%) reported carrying over $5,000 in high-interest debt, with that figure rising among active-duty service members, half of whom said they carry more than $10,000.
The survey also points to a gap between awareness and understanding of the VA loan benefit. While a majority of respondents said they are familiar with the program, 55% held at least one misconception. Notably, 30% were unaware that VA loans do not require a down payment.
At the same time, some aspects of the benefit are better understood. Sixty percent of respondents correctly identified that VA loans typically offer lower interest rates than conventional mortgages, and 71% of service members said they are aware that Basic Allowance for Housing (BAH) can be used as qualifying income.
“These survey results reinforce that there is a real opportunity to reach more veterans with clear information about what the VA benefit offers,” said Brian D. Montgomery, vice chairman of NewDay USA. “Ensuring every eligible veteran understands this benefit is one of the most impactful things we can do to help military families build long-term financial security.”
For mortgage professionals, the data underscores a continued disconnect between borrower interest and transaction readiness — particularly around upfront costs and program knowledge — even within a segment that reports high satisfaction with one of the industry’s most widely used government-backed loan products.
