Only 3 in 10 Veterans Know They Can Buy a Home With Zero Down
Realtor.com® and an alliance of organizations launches the #MissionZero campaign to educate Veterans and servicemembers about their hard-earned home loan benefit
SANTA CLARA, Calif., Nov. 8, 2023 /PRNewswire/ -- While many Veterans are aware they have access to Veterans Affairs home loan benefits, which honor their service by making homeownership more accessible, just 3 in 10 know they can use that benefit to buy a home with a zero down payment, according to a new national survey of Veterans and active duty service members.
A unique alliance of real estate, media, mortgage and Veteran service organizations are joining forces to change that. The #MissionZero campaign aims to make sure every Veteran and service member knows their hard-earned VA loan benefit helps them buy with 0% down. Joining Realtor.com® in the effort are some of News Corp's most popular media properties, such as the New York Post and the Wall Street Journal, along with the Tunnel to Towers Foundation, the Veterans of Foreign Wars and Veterans United Home Loans.
The #MissionZero campaign aims to provide essential information and support to those who are serving or have served our nation, helping them achieve their dreams of buying a home. The campaign aims not to end until every Veteran and service member knows the power of what they've earned.
"VA home loans offer many benefits, especially at times like this when affordability is such a major factor in home purchase decisions. Yet only a small portion of eligible Veterans are tapping into the financial benefits they deserve for their service," said Damian Eales, CEO at Realtor.com®. "At Realtor.com®, the #MissionZero campaign was born out of the belief that nothing should stand in the way of homeownership, especially a down payment. We owe it to our Veterans to ensure they have the information they need to make informed housing decisions. It's a small way to give back to those who have given so much, and we appreciate our partners for joining us in the cause."
VA home loans help boost savings and homeownership among Veteran households
VA home loans typically offer qualified borrowers zero down payment, more flexible credit terms, and lower interest rates, making it easier to access homeownership, especially for first-time buyers who do not have home equity to draw on. These advantages place Veterans in a more favorable position than non-Veterans in today's housing market, according to a new Realtor.com® report.
Realtor.com®'s report found the homeownership rate for Veteran households, according to the latest available data, was 79.7%, significantly surpassing that of non-Veterans, 63.5%. Additionally, data shows homeownership rates for Veterans are higher than non-Veterans in all of the top 100 metros, and with greater awareness, VA loans could help even more Veterans overcome current market challenges.
"After nearly eight decades of helping Veterans and military families buy homes and build generational wealth, the VA loan benefit is more important than ever," said Nathan Long, CEO of Veterans United. "The #MissionZero campaign helps highlight how VA loans are built to eliminate obstacles and make homeownership more accessible for those who serve. At the same time, they also offer Veterans the freedom to choose how and where they invest their savings."
VA loans empower Veteran homeownership by allowing lower down payments and credit scores, along with lower interest rates
- The hallmark advantage of VA loans is the ability to purchase a home without the burden of a down payment, a game-changer in today's market. Realtor.com® found that over the last year, while 3 in 4 (75.2%) VA loans had a 0% down payment, some borrowers do put money down to reduce their loan's principal balance, and the average down payment percentage for VA loans was 2.7% – significantly less than the average 19.1% down payment percent for conforming loans.
- Data on VA loans shows a greater share of issuance to those with less than perfect credit compared to other loans, making homeownership possible to a wider net of borrowers. In the past year, about 24.8% of home buyers with VA loans fell into the Fair credit score category (580-669) compared to 4.7% among conforming loan borrowers.
- VA loans also typically have lower mortgage interest rates, which reduces monthly costs. Between October 2022 and September 2023, the average mortgage rate for 30-year fixed-rate VA loans was 6.27%, whereas it was 6.67% for conforming loans.
- All of these loan advantages stack up, and VA loans place Veteran households in a more favorable position than non-Veterans in today's housing market, saving borrowers hundreds monthly.
Veterans and military personnel interested in learning more about VA home loans and the #MissionZero campaign, can visit www.realtor.com/veterans.
Methodology
See the full Realtor.com® report for the methodology and additional findings. The 3 in 10 statistic is based on a national survey of 300 respondents, split evenly between active duty service members and Veterans, conducted in October 2023 by data and analytics firm Sparketing.
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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SOURCE Realtor.com
