Veterans can buy a home more than four years sooner using a VA loan with zero down payment. A new study from Realtor.com finds 74% of first-time VA loan users put no money down.
Conventional buyers typically need a 12% down payment, which takes years to save. On a $430,000 home, that’s about $51,600 upfront.
For someone saving 15% of their income, it would take 4.4 years to accumulate that amount.
In high-cost cities like Los Angeles, VA loans can put veterans in a home up to 10 years sooner. Even in lower-cost cities like Akron, Ohio, it can shorten the time it takes to save for a down payment by about 3.3 years.
“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.”
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Realtor.com found that while many military families qualify for the VA loan, few use it. The site estimates that just one-third of veterans and active-duty service members are aware of the program.
“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 at 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.”
The Department of Veterans Affairs says these loans also offer competitive, low interest rates.