The rise comes as higher home prices and elevated mortgage rates continue to increase the cost of buying a home. According to a Rocket Mortgage and Redfin analysis of county records across 40 major U.S. metropolitan areas, more eligible military borrowers are relying on VA loans to reduce upfront expenses.
VA loans are backed by the U.S. Department of Veterans Affairs and issued through private lenders. They generally require little or no down payment and do not require private mortgage insurance, making them an option for eligible veterans, active-duty service members, and some surviving spouses.
The program has become more prominent as affordability challenges persist across the housing market. Even so, research indicates that many eligible borrowers either do not fully understand the benefit or have not considered using it when purchasing a home.
More Eligible Buyers Are Turning to VA Loans Amid Housing Affordability Challenges
According to the Rocket Mortgage and Redfin analysis, VA loans represented 7.7% of mortgaged home purchases in March, up from 6.8% during the same month a year earlier. The figure also matched the highest March share recorded over the past decade, tying the level reached in 2020.
The increase reflects growing interest among eligible buyers seeking ways to lower the initial costs associated with purchasing a home. Because VA loans typically eliminate the need for a large down payment and private mortgage insurance, they can reduce some of the financial barriers facing military families entering the housing market.
Despite the program’s expanding use, awareness remains uneven. According to a January Rocket Mortgage survey of more than 1,100 active-duty service members, veterans, and their spouses, 59% said they were aware of VA loans. Fewer than half said they had used the program or planned to use it to purchase a home. The same survey also found that only 16% were familiar with veteran housing resources available through their state.
Veterans Say the Benefit Helped Make Homeownership Possible
Former U.S. Army cryptologic linguist Ryan Dandin said the VA loan program enabled his family to move from military housing into a permanent home in Michigan after years of relocating between assignments, including postings in California and Germany.
According to FOX Business, Dandin said that when he left military service, most transition guidance focused on health care and disability benefits, while information about VA home loans received comparatively little attention. He also said he initially believed homeownership was beyond his financial reach before learning he qualified for the program.
Dandin described owning a home as giving his family stability after years of frequent moves. He encouraged other veterans not to dismiss the possibility of qualifying before exploring the benefit.
Army Reserve veteran Steven Mohler shared a similar experience. Speaking to FOX Business, he said he refinanced his Arizona home through a VA loan and secured a low mortgage rate. He encouraged fellow veterans to apply rather than assume they were ineligible.
Reflecting on the broader significance of homeownership during America’s 250th anniversary year, Dandin said owning a home represents independence and an opportunity to build equity for future generations. He described it as a way to establish lasting roots after military service and to pass along something meaningful to one’s family.
