VA loans can get veterans homes years earlier as more buyers waiting longer
Many veterans can buy a home much sooner using a Veterans Affairs, or VA loan, because it often doesn’t require a down payment, unlike conventional mortgages. According to a new report from Realtor.com, a veteran using a 0% down VA loan could potentially buy a home 4.4 years earlier than someone saving for a conventional down payment.
Seventy-four percent of first-time VA loan users put 0% down, and by comparison, first-time conventional buyers usually put down about 12% of the home’s price, according to the report. If a first-time buyer earns a median income of $78,700 per year and saves 15% of it each year, it would take 4.4 years to save up that $51,600 down payment. By contrast, a veteran using a 0% down VA loan could potentially buy a home 4.4 years earlier than someone saving for a conventional down payment.
The time VA loans save for first-time homebuyers varies by location. In more affordable areas such as Akron and Dayton, Ohio, veterans can reach homeownership about 2.7 to 2.8 years sooner than with a conventional loan. However, in higher-cost cities where down payments are much larger, buyers purchase homes roughly 6.5 years sooner in New York City, 7.5 years sooner in San Diego and Oxnard–Thousand Oaks, California, and up to 10 years sooner in Los Angeles.
VA loan usage varies by location
Even though VA loans offer benefits, many eligible veterans aren’t using them in certain parts of the country, according to Realtor.com. In particular, high-cost cities such as Los Angeles, San Francisco, San Jose and New York see lower VA loan usage. In New York and other cities with lots of co-ops, only about 3.8 home purchases per 1,000 military households involve a VA loan.
There are a couple of reasons why VA loans aren’t used much in New York City. First, you can’t use them to buy co-ops, which are common in places like New York. And second, condos and townhomes have to be approved by the VA first, so many buildings in the area aren’t on that list, and buyers don’t have many options.
In cities near large military bases, such as Virginia Beach, Virginia, and Colorado Springs, Colorado, a high number of veterans are using VA loans to buy homes — about 42 to 43 purchases per 1,000 military households. This is because many military families live in these areas and are more familiar with the VA loan program.
On the other hand, places like Salt Lake City and Fresno, California, have fewer military families living nearby. Because of that, fewer people know about VA loans, so fewer veterans take advantage of them, even though they could benefit financially from the program.
Veterans often don’t know about the 0% down benefit
Although the 0% down payment feature of VA loans is a huge help for first-time homebuyers, many veterans and active-duty members don’t realize it’s part of the benefit. A 2025 survey from Veterans United found that most veterans know about VA loans in general, but only about 1 in 3 know they don’t have to make a down payment when using the loan.
Chris Birk, vice president of Mortgage Insight and Education at Veterans United Home Loans, spoke with Realtor.com about VA 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,” he said. “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.”
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Ella Rae Greene, Editor In Chief
