VA loans are emerging as a more popular route to homeownership, especially as high home prices and mortgage rates present challenges for buyers. However, a significant number of veterans and active-duty service members still lack a full understanding of this earned homebuying benefit.
Data from a Rocket Mortgage and Redfin analysis of county records across 40 major U.S. metro areas indicates that VA loans constituted 7.7% of mortgaged home purchases in March. This marks an increase from 6.8% a year prior and matches the 2020 share, representing the highest March percentage in a decade.
This trend reflects the efforts of eligible veterans, service members, and surviving spouses to find ways to reduce the initial costs associated with buying a home. VA loans, guaranteed by the Department of Veterans Affairs and provided by private lenders, typically eliminate the need for a down payment and private mortgage insurance.
Despite the growing use of VA loans, many in the military community are not fully aware of how this benefit can assist them in purchasing a home, according to Rocket Mortgage. A January survey by Rocket Mortgage, involving over 1,100 active-duty service members, veterans, and their spouses, revealed that while 59% knew about VA loans, fewer than half had used or planned to use one.
The study also found that only 16% were familiar with state-specific veteran housing resources. Ryan Dandin, a former U.S. Army cryptologic linguist and current Rocket Mortgage team member, shared how the benefit enabled his family to transition from temporary military housing to a permanent home in Michigan. Dandin noted that during his military service, the focus was primarily on VA healthcare and disability ratings, with VA home loans often being a mere footnote.
He emphasized that homeownership provided his family with stability and roots. Dandin encourages veterans who might assume they don’t qualify or that homeownership is out of reach to explore the option. “When we got our first home, that was the same mindset that I had. I had no clue that I could actually afford a home. I had no clue that I would actually qualify,” he said.
Steven Mohler, an Army Reserve veteran, echoed this sentiment, urging veterans not to dismiss the possibility. “Go for it! At least try,” Mohler advised. “It’s easy.” Mohler successfully refinanced through a VA loan, securing a low mortgage rate on his home in Arizona, expressing disbelief at his good fortune.
Dandin also connected the significance of veteran homeownership to America’s 250th anniversary year, stating, “Homeownership is one of the most tangible expressions of the American dream. It means independence, owning a piece of America. A home is where you raise your kids, where you build equity for your future and where you pass on something greater than you started with.”
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