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VA Home Loans Gain Ground as Buyers’ Market Opens Doors for Veterans

New data show usage rose to 7.3% of mortgaged purchases in August 2025, concentrated in major military metros.

Overview

  • Redfin reports VA-backed purchases reached 7.3% in August, up from 6.5% a year earlier, with the count of VA borrowers rising 3% as conventional loans fell 9%.
  • Military hubs lead VA usage: Virginia Beach hit 43.2%, followed by Jacksonville at 17.2%, Washington, D.C., at 16.7%, San Diego at 15.2%, and Las Vegas at 11.9%.
  • A cooler market with more inventory is boosting acceptance of low or no down payment offers, reversing pandemic-era preferences for larger down payments.
  • Consumer guidance counters misconceptions: VA loans commonly close in 30–45 days, are not riskier for sellers, and appraisals focus on safety-based Minimum Property Requirements.
  • VA mortgages typically require no down payment or PMI, carry a government guarantee and one-time funding fee, and benefits can be reused under entitlement rules.