Getting by the down payment barrier
Saving up for a big down payment tends to be a common obstacle for many home buyers.
Fortunately for military personnel, home loans backed by the Department of Veterans Affairs offer low-to-no down payment requirements. In fact, 83.5% of recent property sales with a VA loan had down payments below 10%, according to Realtor.com.
Begin your VA loan application. Start hereThe VA loan savings
A major advantage of a VA loan is not needing a down payment. That can make a huge difference for prospective home buyers, especially in times of low affordability.
In the 12 months from October 2023 to September 2024 for 30-year loans, the average VA borrower put down 4.6% compared to 19.7% for conforming mortgages, according to Realtor.com. Further, an 85.3% share of VA loans had down payments below 10% versus 39.9% of conforming borrowers. Even more eye-catching, 74.4% of VA loans had a 0% down payment — which isn’t an option for conforming mortgages.
VA loans also have lower credit score requirements, and typically offer lower interest rates. Over that same time frame, VA loans averaged a 6.05% mortgage rate while conforming loans averaged 6.58%.
“Despite the significant advantages provided to veterans with VA loans, only 3 in 10 veterans and active-duty service members were aware of the zero down payment benefits of VA loans,” said Danielle Hale, chief economist at Realtor.com. “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.”
Verify your VA loan eligibility. Start hereBecause VA loans have lower barriers to entry for home buyers, veteran households had a 77.3% age-adjusted homeownership rate in 2022 compared 68.8% for regular civilian households, among the 100 largest housing markets.
The table below shows where age-adjusted military homeownership outpaces non-military rates, according to Realtor.com:
| Metros | Age-Adjusted Homeownership Rate Gap | Homeownership Rate, Military | Homeownership Rate, Non-Military | Share of Military Households | Share of Sales with VA Loans | Monthly Savings with VA Loans |
| Stockton, CA | 18.8% | 80.9% | 61.7% | 9.8% | 5.4% | $92 |
| Des Moines IA | 18.4% | 88.8% | 68.5% | 9.5% | 6.4% | $58 |
| Buffalo, NY | 16.7% | 81.9% | 63.9% | 10.6% | 6.6% | $45 |
| Syracuse, NY | 16.4% | 84.4% | 63.9% | 11.7% | 6.9% | $48 |
| Little Rock, AR | 15.5% | 78.7% | 60.6% | 14.8% | 14.2% | $47 |
| Fresno, CA | 14.9% | 71.2% | 53.1% | 10.0% | 6.6% | $75 |
| New York | 14.7% | 71.5% | 51.3% | 5.6% | 2.0% | $123 |
| Memphis, TN | 14.3% | 79.7% | 57.9% | 11.5% | 9.9% | $54 |
| Virginia Beach, VA | 13.4% | 71.6% | 59.3% | 31.5% | 42.3% | $63 |
| Providence, RI | 13.4% | 77.8% | 61.1% | 9.9% | 4.4% | $92 |
Advice for veteran home buyers
Affordability is a common hurdle for many home buyers, but VA borrowers can reap the benefits of below-market interest rates, opting for no money down, and no mortgage insurance.
If you’re a veteran ready to buy a home, survey the ins and outs of VA loans and reach out to a local lender to get started.
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