PHILADELPHIA, PA — A new analysis shows that Veterans using a 0% down VA home loan can purchase a home 4.4 years sooner than buyers relying on a traditional 12% down conventional mortgage — a striking advantage that highlights both the strength of the VA program and the cost of its continued underuse.
The findings, released jointly by Realtor.com and the National Association of Realtors, underscore a widening opportunity gap: while VA loans eliminate the largest hurdle in homebuying — the down payment — many eligible Veterans are either unaware of the benefit or unable to use it in markets with structural barriers such as high prices or co-op–heavy housing stock.
According to the research, 74% of first-time VA loan borrowers make no down payment, compared with the 12% median down payment made by first-time buyers using conventional financing. On a typical $430,000 home, that difference amounts to $51,600 in upfront cash — a sum that would take a household earning the median first-time buyer income roughly 4.4 years to save.
For Veterans, this time savings translates directly into earlier homeownership, faster equity building, and increased long-term financial stability.
The report also shows just how wide the benefit range can be across U.S. metro areas. VA loans help first-time buyers reach homeownership as little as 2.7 years sooner in Akron, Ohio, and up to 10 years sooner in Los Angeles, one of the most expensive markets in the country.
Despite the advantages, utilization remains uneven. High-cost cities such as Los Angeles, San Francisco, San Jose, New York, and Boston show some of the nation’s lowest VA loan usage — often fewer than five VA-backed purchases per 1,000 military households. In these markets, steep home prices, co-op restrictions, and misconceptions about VA loan processing times reduce adoption. At the same time, metro areas with large military populations, including Virginia Beach and Colorado Springs, have VA loan utilization rates exceeding 40 per 1,000 military households, among the highest in the nation.
Experts say awareness remains one of the biggest barriers. A 2025 Veterans United survey found that only about one-third of Veterans and active-duty service members know they can buy a home with no money down.
Realtor.com and the National Association of Realtors have expanded their “Mission Zero” campaign to close that information gap, highlighting VA loan advantages and steering Veterans toward resources designed to simplify the homebuying process.
As mortgage rates, home prices, and affordability challenges continue to weigh on buyers nationwide, the research suggests that fully utilizing VA benefits could be one of the most effective ways for Veterans to enter — and compete in — today’s housing market years ahead of schedule.
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