Some 75% of veterans and service members nationwide are considering buying a home in the next year. That’s according to a study by Veterans United Home Loans, which financed more than $26 billion in loans in 2022.
Researchers for the VA lender say they conducted the survey in order to track and understand sentiment of military service members and veterans related to homebuying in an ever-evolving economy and real estate market.
More than half (55%) of the respondents said buying a home “feels within reach,” especially with support from lenders such as Veterans United, which allows qualified borrowers to purchase a home with no down payment, no mortgage insurance and access to lower average interest rates, according to the leadership at Veterans United.
"While most Veterans expect higher rates and home prices to stick around, most also expect to be better off financially a year from now," said Chris Birk, VP of Mortgage Insight at Veterans United, referring to the survey. "At a time when many would-be buyers are struggling, this hard-earned home loan benefit can help veterans and service members break through a bruising housing market."
Most respondents acknowledged that average home prices in their area will be higher (60%) and interest rates will rise (68%), yet they are mostly confident about the future of their finances. About seven in 10 (67%) think they'll be better off financially a year from now, and about 60% feel optimistic about their financial plan moving forward. More than half (56%) say they are somewhat or in a better place financially compared to last year and 62% have less debt now than they've had in the past.
Among the top issues preventing respondents from purchasing a home today are high interest rates—nearly half say so—and about 44% say that high home prices have thwarted their homebuying plans. There’s also concerns about inflation, which is keeping about 30% from making a serious move to purchase a home.
About half of veterans and service members said they are holding off on large purchases, and 56% said they know people who are choosing to renovate their current home instead of buying a new home.
Other concerns (>20%) involve credit scores, selling current property, decline in stock prices, and job loss.
For the full report and methodology, click here.