A 0% Down VA Loan Can Put Veterans in a Home 4.4 Years Sooner

Underutilization of VA loans delays homeownership, especially in high-cost markets, co-op-heavy cities, and areas where Veterans may not know about their benefits , /PRNewswire/ -- For many U.S. Veterans, buying a home can feel out of reach, but a 0% down Veterans Affairs home loan can help first-time buyers move in 4.4 years sooner than with a typical conventional loan, according to a new report from Realtor.com® and the National Association of Realtors®. A custom analysis of NAR's 2024 Profile of Home Buyers and Sellers finds that 74% of first-time VA loan users put 0% down, compared with a 12% median down payment for conventional first-time buyers. With a VA loan, borrowers only need to cover standard closing costs, which are similar for both types of loans. On a typical $430,000 home, a conventional buyer would need roughly $51,600 upfront that a VA loan buyer wouldn't need. For a first-time buyer saving 15% of a median $78,700 annual gross income, it would take about 4.4 years to accumulate that amount. A lower 10% savings rate stretches the timeline to 6.6 years, while a more aggressive 20% rate shortens it to 3.3 years. In short, a 0% down VA loan lets buyers enter the market and start building equity years sooner. "For many Veterans and service members, a VA loan can be a game changer," said Danielle Hale, chief economist at Realtor.com®. "By removing the hurdle of a large down payment, these loans open doors to homeownership and financial security years sooner." Across U.S. markets, VA loans unlock homeownership 2.7 to 10 years sooner Across U.S. metro areas, VA loans give first-time buyers a head start, cutting years off the path to a home. Assuming the same 0% down payment for VA loans versus 12% for conventional loans, and a 15% household saving rate for first-time buyers making the local median income and purchasing a home at the local median price, these loans can help buyers get a foothold in their local market years sooner. On the lower end, a VA loan lets buyers reach homeownership 2.7 years sooner than a conventional loan in Akron, Ohio, and 2.8 years sooner in Dayton, Ohio, while in higher-cost areas, it ranges from 6.5 years sooner in New York City, 7.5 years in both San Diego and Oxnard–Thousand Oaks, Calif., and up to 10 years sooner in Los Angeles. High-cost, co-op heavy markets lag in VA loan use, while military hubs lead the way Despite the clear advantages of VA loans, use remains low in some areas – especially high-priced metros like Los Angeles, San Francisco, San Jose, and New York, where home prices, co-op restrictions, and limited awareness all play a role. "The VA Home Loan program has opened the door to homeownership for more than 48 million veterans and service members – one of the most successful housing initiatives in American history," said Lawrence Yun, NAR chief economist. "The standout benefit of a VA loan is the 0% down payment but without the extra risk. The lower upfront cost makes homeownership more attainable, especially in high-cost markets and amid elevated mortgage rates, giving qualified buyers a critical advantage and the ability to start building equity sooner. The VA Home Loan program is a shining example of how smart federal policy can expand access to homeownership, strengthen communities, and reward those who've served our nation." In metros with a high concentration of co-ops, like New York, additional barriers limit access to VA loans, resulting in one of the nation's lowest utilization rates – just 3.8 VA-financed home sales per 1,000 military households. That's because in addition to high-costs, VA loans cannot currently be used to purchase co-ops, and condos or townhomes must be VA-approved to qualify. Identifying and addressing these underutilized markets is key, as many are exactly where Veterans could benefit most from the 0% down payment advantage. Conversely, metros near major military bases – including Virginia Beach, Va., and Colorado Springs, Colo. – show some of the highest VA loan utilization rates, 42.1 and 43.1, respectively, reflecting both the concentration of military households and stronger awareness of the program. In contrast, markets like Salt Lake City and Fresno, Calif., have fewer military households, which may contribute to lower awareness despite the potential for significant financial benefit. Mission Zero: Closing the awareness gap to help more Veterans achieve homeownership Despite VA loans' many advantages, only about one-third of Veterans and active-duty service members know they can buy a home with no money down, according to a 2025 survey from Veterans United Home Loans. "Many Veterans don't realize that a VA loan removes the need for a down payment, which is one of the biggest hurdles to homeownership," said Chris Birk, vice president of Mortgage Insight and Education, Veterans United Home Loans. "As the nation's largest VA lender, we see every day how this benefit changes lives. When Veterans understand the power of their VA loan, they can start building equity and stability for their families years sooner." This report is part of the Mission Zero campaign, launched two years ago by Realtor.com® in partnership with Veterans United, to ensure every Veteran knows about and can use their VA home loan benefit. The 2025 campaign launches November 11 in partnership with Veterans United Home Loans, The New York Post, The Wall Street Journal, RE/MAX, Home Depot, NAR, Veterans of Foreign Wars, and Homes for Our Troops. This year, Army Veterans Terry Lashley, Shelia Roberts, & Ronnie Baldwin have joined Mission Zero to help more Veterans learn about the VA loan that makes homeownership possible with 0% down. On November 11, you can watch their stories and find out more about VA loans at www.realtor.com/veterans. The Veterans & Military Benefits section on Realtor.com® for-sale home listings also includes information about this benefit. Metro UtilizationRate: # saleswith VAloans per1000Military HH BenefitIntensity: Yrssooner toownership VA LoanUtilizationRate VA LoanBenefitIntensity Mismatch: (Low VAutilization& HighBenefitIntensity) Share ofmilitaryHH Avg. MedianPrice Akron, OH 9.4 2.7 Low Low 13.40 % $232,806 Albany-Schenectady-Troy, NY 6.1 4.1 Low Low 12.30 % $437,533 Albuquerque, NM 17.7 4.6 High High 17.60 % $408,479 Allentown-Bethlehem-Easton, PA-NJ 9.1 4 Low Low 13.70 % $388,913 Atlanta-Sandy Springs-Roswell, GA 15.8 3.7 High Low 13.70 % $409,920 Augusta-Richmond County, GA-SC 33.7 3.8 High Low 24.90 % $318,199 Austin-Round Rock-San Marcos, TX 18.2 4 High Low 12.20 % $508,505 Bakersfield-Delano, CA 17.2 4.8 High High 12.10 % $400,463 Baltimore-Columbia-Towson, MD 18.2 3.2 High Low 14.60 % $377,448 Baton Rouge, LA 13.7 3.6 Low Low 12.00 % $300,796 Birmingham, AL 14.4 3.3 Low Low 13.90 % $296,398 Boise City, ID 19.8 5.5 High High 17.00 % $595,852 Boston-Cambridge-Newton, MA-NH 5.8 6.1 Low High Mismatch 9.80 % $836,038 Bridgeport-Stamford-Danbury, CT 3.1 5.7 Low High Mismatch 8.20 % $810,754 Buffalo-Cheektowaga, NY 4.6 3.1 Low Low 14.50 % $272,724 Cape Coral-Fort Myers, FL 11.4 4.6 Low High Mismatch 17.40 % $427,193 Charleston-North Charleston, SC 32.6 4.9 High High 22.30 % $519,421 Charlotte-Concord-Gastonia, NC-SC 15.8 4.3 High Low 13.10 % $434,796 Chattanooga, TN-GA 14.2 4.5 Low High Mismatch 16.30 % $406,576 Chicago-Naperville-Elgin, IL-IN 10.8 3.4 Low Low 8.40 % $365,693 Cincinnati, OH-KY-IN 11.2 3.4 Low Low 13.10 % $337,322 Cleveland, OH 9.1 3 Low Low 12.40 % $256,469 Colorado Springs, CO 43.1 4.5 High High 32.60 % $497,170 Columbia, SC 28.3 3.7 High Low 21.10 % $309,880 Columbus, OH 13.1 3.7 Low Low 12.10 % $369,660 Dallas-Fort Worth-Arlington, TX 22.8 3.9 High Low 12.00 % $428,734 Dayton-Kettering-Beavercreek, OH 18.3 2.8 High Low 19.40 % $243,677 Deltona-Daytona Beach-Ormond Beach, FL 19.4 4.4 High High 20.20 % $389,564 Denver-Aurora-Centennial, CO 16.8 4.4 High High 12.50 % $592,295 Des Moines-West Des Moines, IA 15.8 3.3 High Low 12.90 % $354,895 Detroit-Warren-Dearborn, MI 9.1 2.9 Low Low 10.00 % $261,956 El Paso, TX 37.4 4.2 High Low 18.70 % $296,193 Fayetteville-Springdale-Rogers, AR 20.3 4.6 High High 12.80 % $437,613 Fresno, CA 11.7 5.3 Low High Mismatch 10.50 % $474,410 Grand Rapids-Wyoming-Kentwood, MI 9.9 3.8 Low Low 10.50 % $394,015 Greensboro-High Point, NC 13.1 4.2 Low Low 13.00 % $330,121 Greenville-Anderson-Greer, SC 12.4 4.4 Low High Mismatch 15.40 % $373,227 Harrisburg-Carlisle, PA 10.6 3.6 Low Low 14.50 % $349,527 Hartford-West Hartford-East Hartford, CT 7.3 3.7 Low Low 11.00 % $437,754 Houston-Pasadena-The Woodlands, TX 20.5 3.7 High Low 10.50 % $365,753 Indianapolis-Carmel-Greenwood, IN 16.4 3.2 High Low 13.20 % $320,608 Jackson, MS 7.9 4 Low Low 13.70 % $309,875 Jacksonville, FL 25.7 3.9 High Low 23.60 % $397,028 Kansas City, MO-KS 15.5 3.9 High Low 14.70 % $389,016 Kiryas Joel-Poughkeepsie-Newburgh, NY 4.4 4.7 Low High Mismatch 12.50 % $538,212 Knoxville, TN 16.7 5 High High 16.20 % $451,078 Lakeland-Winter Haven, FL 21.3 4.3 High Low 17.00 % $340,821 Las Vegas-Henderson-North Las Vegas, NV 24.8 5.2 High High 16.80 % $473,693 Little Rock-North Little Rock-Conway, AR 23.6 3.6 High Low 17.00 % $293,246 Los Angeles-Long Beach-Anaheim, CA 4.3 10 Low High Mismatch 7.20 % $1,140,124 Louisville/Jefferson County, KY-IN 14.1 3.5 Low Low 13.80 % $317,372 McAllen-Edinburg-Mission, TX 13.9 4.3 Low Low 8.70 % $271,472 Memphis, TN-MS-AR 16.5 4 High Low 14.10 % $336,104 Miami-Fort Lauderdale-West Palm Beach, FL 8.8 5.5 Low High Mismatch 8.20 % $513,279 Milwaukee-Waukesha, WI 7.1 4.1 Low Low 10.30 % $384,617 Minneapolis-St. Paul-Bloomington, MN-WI 10 3.6 Low Low 11.80 % $434,058 Nashville-Davidson--Murfreesboro--Franklin, TN 16.4 5.1 High High 12.40 % $539,897 New Haven, CT 4.9 4 Low Low 10.10 % $465,333 New Orleans-Metairie, LA 7.3 4.1 Low Low 11.80 % $320,519 New York-Newark-Jersey City, NY-NJ 3.8 6.5 Low High Mismatch 6.50 % $771,265 North Port-Bradenton-Sarasota, FL 12.5 4.8 Low High Mismatch 17.90 % $479,698 Oklahoma City, OK 25.1 3.6 High Low 17.50 % $318,721 Omaha, NE-IA 20.6 3.7 High Low 16.40 % $392,633 Orlando-Kissimmee-Sanford, FL 14.4 4.5 Low High Mismatch 14.20 % $423,797 Oxnard-Thousand Oaks-Ventura, CA 6.9 7.5 Low High Mismatch 13.10 % $1,013,650 Palm Bay-Melbourne-Titusville, FL 23.4 3.9 High Low 25.90 % $384,857 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 8.7 3.4 Low Low 11.30 % $372,115 Phoenix-Mesa-Chandler, AZ 19.1 4.7 High High 14.50 % $512,950 Pittsburgh, PA 7.8 2.7 Low Low 13.70 % $242,702 Portland-South Portland, ME 5.9 5.6 Low High Mismatch 14.00 % $641,960 Portland-Vancouver-Hillsboro, OR-WA 10.6 5.1 Low High Mismatch 12.60 % $602,917 Providence-Warwick, RI-MA 9.9 5.3 Low High Mismatch 11.90 % $566,817 Raleigh-Cary, NC 18.4 3.7 High Low 12.60 % $451,088 Richmond, VA 17 4 High Low 16.50 % $439,469 Riverside-San Bernardino-Ontario, CA 15.8 5.6 High High 13.60 % $599,154 Rochester, NY 4.8 3.1 Low Low 11.20 % $275,483 Sacramento-Roseville-Folsom, CA 9.5 5.3 Low High Mismatch 13.40 % $623,501 Salt Lake City-Murray, UT 9.4 4.7 Low High Mismatch 10.30 % $578,375 San Antonio-New Braunfels, TX 36.3 3.6 High Low 22.70 % $333,489 San Diego-Chula Vista-Carlsbad, CA 13.4 7.5 Low High Mismatch 18.60 % $968,285 San Francisco-Oakland-Fremont, CA 3.3 5.7 Low High Mismatch 7.30 % $958,645 San Jose-Sunnyvale-Santa Clara, CA 2.7 6.9 Low High Mismatch 5.80 % $1,359,153 Scranton--Wilkes-Barre, PA 7.3 3.2 Low Low 14.00 % $256,173 Seattle-Tacoma-Bellevue, WA 10.8 5.4 Low High Mismatch 13.80 % $762,296 Spokane-Spokane Valley, WA 16.5 5.5 High High 19.90 % $501,225 St. Louis, MO-IL 15.9 2.9 High Low 15.40 % $291,925 Stockton-Lodi, CA 10.6 5.3 Low High Mismatch 12.00 % $584,012 Syracuse, NY 6.6 3.5 Low Low 13.70 % $307,975 Tampa-St. Petersburg-Clearwater, FL 18.4 4.5 High High 17.20 % $406,643 Toledo, OH 13 3 Low Low 11.40 % $234,814 Tucson, AZ 18.6 4.6 High High 19.60 % $391,659 Tulsa, OK 11 3.9 Low Low 15.50 % $326,973 Urban Honolulu, HI 28 5.5 High High 28.10 % $678,865 Virginia Beach-Chesapeake-Norfolk, VA-NC 42.1 4 High Low 31.70 % $402,939 Washington-Arlington-Alexandria, DC-VA-MD-WV 21.8 3.9 High Low 16.10 % $601,948 Wichita, KS 21.6 3.3 High Low 16.30 % $293,057 Winston-Salem, NC 15.9 4.2 High Low 14.20 % $346,447 Worcester, MA 15 4.9 Low High Mismatch 12.60 % $551,979 Average 15.0 4.4 14.6 % $456,477 About Realtor.com® Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. Media contact: Sara Wiskerchen, [email protected] SOURCE Realtor.com

A 0% Down VA Loan Can Put Veterans in a Home 4.4 Years Sooner

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