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New Analysis Finds Zero-Down VA Loans Cut Time to First Home by 4.4 Years on Average

A renewed Mission Zero push targets a widespread awareness gap that leaves many eligible buyers on the sidelines.

Overview

  • Realtor.com and the National Association of Realtors published findings on Nov. 10 showing VA loans’ no-down-payment feature lets first-time buyers purchase about 4.4 years sooner than with a typical conventional loan.
  • The time advantage varies widely by market, ranging from roughly 2.7 years to as much as about 10 years in high-cost areas such as Los Angeles.
  • Seventy-four percent of first-time VA borrowers put 0% down, compared with a 12% median down payment for first-time conventional buyers, which equals about $51,600 on a $430,000 home.
  • Use of VA loans remains low in many expensive and co-op-heavy metros due to price pressures and product restrictions, including condo and co-op approval rules.
  • Veterans United reports only about one-third of Veterans and service members know they can buy with no money down, and the Mission Zero campaign relaunches Nov. 11 to boost awareness and access.