VA loans have become slightly more common as buyers gain power and sellers are more apt to accept offers with low down payments. VA loans are most prevalent in Virginia Beach, Jacksonville and Washington, D.C., all military hubs.

Nationwide, 7.3% of mortgaged homebuyers used a VA loan in August, up from 6.5% a year earlier and the highest share for that month since 2019. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.

VA loans, which are mortgages available to military service members and veterans, are becoming more prevalent as the housing market tilts in buyers’ favor and sellers are more apt to accept offers with low down payments.

“Military members have made sacrifices to protect our home,” said Bill Banfield, chief business officer at Rocket. “VA loans are one of the most powerful benefits available to veterans and service members, opening doors to homeownership with zero down payment, no monthly mortgage insurance and flexible credit requirements. Now is a prime time for veterans and service members to take advantage of them. VA loans have a better chance of getting accepted in today’s buyer’s market than they did several years ago, when buyers were competing against each other and sellers were calling the shots.”

The share of mortgaged homebuyers using a VA loan has increased, and so has the number of buyers taking out VA loans. Nationwide, the number of VA loans rose 3% year over year in August, while the number of conventional loans declined 9%.

A higher share of homebuyers are using VA loans than any late summer since 2019 because it’s a buyer’s market in much of the country. In an ultra-competitive market, such as during the pandemic, the market favors buyers with higher down payments and more ability to prove their financial security. In late 2020 and early 2021, when mortgage rates were at record lows and it was a prime seller’s market, less than 6% of mortgaged homebuyers were using VA loans. But now that the market has tilted in favor of buyers, people are more likely to get an offer using a VA loan accepted.

“A buyer can make an offer with a VA loan, put virtually no money down, ask for $5,000 in closing credits, and get their offer accepted,” said Jim Fletcher, a Redfin Premier agent in Tampa, FL. “The market is slow, there’s a backlog of inventory, and buyers are in the driver’s seat. Florida historically has had a lot of all-cash buyers, but recently, there are more financed buyers—and many of them are able to win homes with ultra-low down payments while also having the seller cover most closing costs.”

Still, only a small share of homebuyers use VA loans. That’s because they’re only available to a small portion of the population, and even in a buyer’s market, some sellers favor other offers that come with bigger down payments.

“The overall market is slower than usual, but move-in ready houses in desirable neighborhoods are still selling fairly fast,” said Matt Ferris, a Redfin Premier agent in Virginia. “I’ve seen a few military sellers recently who have houses that fall into that category. Sometimes they’d ideally like to sell to another military family, but then they get four, five, six offers, and the best is from a buyer using a conventional loan, and they’re offering $10,000 more than the offer using a VA loan. The seller takes the higher offer with the conventional loan because they need to make the most money from the sale.”

Just under one in seven (13.9%) mortgaged buyers used an FHA loan in August, down incrementally from 14.1% a year earlier. Conventional loans are the most common type of mortgage, by far. Nearly eight in 10 (78.9%) home loans were conventional in August.

VA loans are most prevalent in Virginia Beach, VA

In August, 43.2% of all mortgaged homebuyers in Virginia Beach, VA used a VA loan, the biggest share of any major U.S. metro by a longshot. That’s also the most prevalent VA loans have been in Virginia Beach of any August on record.

Next comes Jacksonville, FL (17.2%), followed closely by Washington, D.C. (16.7%). That’s the highest August share for Washington, D.C. in 14 years. San Diego (15.2%) and Las Vegas (11.9%) round out the top five.

Virginia Beach is also where the use of VA loans increased most year over year, rising to 43.2% of all mortgage home sales from just under 40% a year ago.

The next-biggest increases were in Orlando, FL (8.2%, up from 5.3%) and San Diego (15.2%, up from 12.3%). The use of VA loans increased in 32 of the 40 metros in this analysis. In the places where they became less common, the dips were about one percentage point or less.

To view the full report, including charts, methodology and additional metro-level data, please visit: https://www.redfin.com/news/va-loans-uptick-2025

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

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