In honor of Veterans Day, Realtor.com® released a report showcasing the benefits that VA loans offer to military families.
The numbers underscore the power of this benefit: over the past year, 83.5% of homes purchased with VA loans involved down payments of less than 10%, and 74.5% purchased with 0% down—a standout feature of VA loans.
What is surprising, however, is that only 3 in 10 Veterans are aware they can purchase a home with zero money down.
“Despite the significant advantages provided to veterans with VA loans, according to a survey conducted by Veterans United Home Loans, only 3 in 10 veterans and active-duty service members were aware of the zero down payment benefits of VA loans. With this research, we hope to empower Veteran households with the knowledge and tools they need to make informed decisions about their homeownership goals and financial well-being.”
VA Loan Benefits
Over the past year, the average down payment for VA loans was just 4.6%—significantly lower than the 19.7% average for conforming loans.
And while over 8 in 10 VA loan recipients were able to buy homes with less than a 10% down payment, only 4 in 10 conforming loan borrowers did the same. In addition, nearly 75% of VA loans were secured with a 0% down payment, a benefit not offered with conforming loans. This feature allows veterans to enter the housing market without the financial barrier of upfront funds—a critical advantage for first-time buyers who may lack home equity, especially as home prices remain high in today’s market.
“Realtor.com® compared loan characteristics of VA and conforming borrowers to highlight the many advantages that VA loans offer enabling Veteran households and the industry professionals working with them to better grasp the impact that this has on Veteran households and homeownership.”
Beyond the down payment advantage, VA loans also offer more flexible credit requirements, making homeownership attainable for a wider range of buyers. In fact, 23.2% of recent VA loan recipients had Fair credit scores (580-669), compared to only 4.5% of conforming loan borrowers, further opening doors for military buyers who might not otherwise qualify.
VA loans can also offer lower mortgage rates. The average mortgage rate for 30-year fixed-rate loans was 6.05% between October 2023 and September 2024. Compare this to conforming loans, where the average was 6.58%. This results in significant monthly savings for homebuyers—$282/month in savings for VA loan buyers putting 10% down and $69/month for those putting 0% down.
VA Loan Changes in 2024
Before August’s industry changes went into effect, veteran buyers using VA loans were restricted from directly compensating their buyer agent. When the National Association of Realtors (NAR) announced its settlement agreement, many were worried about new commission structures and how they would impact veterans specifically.
To get ahead of this, the Department of Veterans Affairs (VA) announced a temporary policy in June. This allows homebuyers who are veterans and active-duty service members to compensate their buyer agent directly. While this policy remains a temporary fix, it is supported by NAR, as it aims to help veterans remain competitive in the housing market, especially in scenarios where sellers may not offer agent compensation.
Homeownership Rates Among Military vs. Non-Military Households
The report also highlighted differences in homeownership rates between military and non-military households. The average homeownership rate for military households in the top 100 metros reached 77.3%, significantly surpassing the non-military rate by 8.5 percentage points when age is accounted for.
Among the top 100 metros, those that saw the highest homeownership among military households were:
- Myrtle Beach, SC (92.9%)
- Des Moines, IA (88.8%)
- Deltona, FL (87.5%)
- Palm Bay, FL (85.8%).
Those that saw the lowest homeownership among military households were:
- Urban Honolulu, HI (55.1%)
- San Diego, CA (62.6%)
- El Paso, TX (64.7%)
Top U.S. Metros for Military Homeownership (Agent-Adjusted)
Given the significant age differences between military and non-military populations—and the strong correlation between age and homeownership—Realtor.com calculated an Age-Adjusted Homeownership Rate Gap. This adjustment helps isolate the impact of military service on homeownership rates across various markets.
When taking into consideration this age adjustment, here are the top markets where military homeownership rates exceed non-military rates:
- Stockton, CA: Military households have an 80.9% homeownership rate, which is 18.8 percentage points higher than non-military households.
- Des Moines, IA: An 18.4% gap places military homeownership at 88.8%.
- Buffalo, NY: Military households enjoy a homeownership rate of 81.9%, 16.7 percentage points above their non-military counterparts.
- Syracuse, NY: Military homeownership rate is 84.4%, 16.4 percentage points higher than non-military households.
- Little Rock, AR: Military households have a 78.7% homeownership rate, outpacing non-military households by 15.5 percentage points.
- Fresno, CA: Military homeownership rate is 71.2%, with a 14.9 percentage point lead over non-military households.
- New York-Newark-Jersey City, NY-NJ-PA: Military households show a 71.5% homeownership rate, 14.7 percentage points above non-military households.
- Memphis, TN-MS-AR: Military homeownership rate is 79.7%, 14.3 percentage points higher than non-military households.
- Virginia Beach-Norfolk-Newport News, VA-NC: Military households have a homeownership rate of 71.6%, with a 13.4 percentage point gap over non-military households.
- Providence-Warwick, RI-MA: Military homeownership stands at 77.8%, 13.4 percentage points above non-military households.
The #MissionZero Campaign
To bridge the knowledge gap around VA loan benefits, Realtor.com launched the #MissionZero campaign in 2023. This aims to ensure that every veteran and service member is aware of all their homeownership benefits.
For more insights and resources, visit Realtor.com’s Veterans section or explore shareable tools designed for agents and real estate professionals looking to assist military clients.
