March Sees Record VA Loan Share in Home Purchases

In March, VA-backed home loans constituted 7.7% of all mortgaged home purchases across 40 major U.S. metropolitan areas, marking the highest share for the month in a decade. This increase from 6.8% a year prior reflects growing demand driven by housing affordability challenges and evolving market conditions. As sellers face softer demand, buyers utilizing VA loans, which typically require minimal to no down payment and forgo private mortgage insurance, find their offers more readily accepted.

Despite the rising popularity and benefits of VA loans, including generally lower interest rates compared to conventional mortgages, a notable awareness gap persists. A recent survey indicated that while a majority of service members and veterans are familiar with VA loans, fewer than half have used or plan to use them. Furthermore, awareness of state-specific veteran housing resources remains very low, highlighting an ongoing opportunity to better inform eligible individuals about these powerful homeownership tools.