• 📈 VA loans rose to 7.3% of mortgaged home purchases in August 2025, the highest since 2019.
• 🏠 Housing competition is softening, giving VA buyers more negotiating power and better access to homes.
• ⚖️ VA loans offer zero down, no mortgage insurance, and flexible credit—making them more competitive than FHA loans.
• 🌆 Cities like Virginia Beach, Jacksonville, and Las Vegas are seeing the highest VA loan usage rates.
• 💡 Misconceptions about VA loans still persist, but real estate education is improving seller acceptance.

Shifting Tides in the 2025 Housing Market

The U.S. housing market is changing. For years, sellers had the advantage. But now, buyers are finally getting the upper hand. VA loans are also becoming more popular. Bidding wars have slowed, and there are more homes for sale. Prices are steady, too. So, the VA home loan is once again a top choice for military buyers to use. They can now negotiate more on homes.

What is a VA Loan and Who Qualifies?

VA loans are a mortgage program offered by the U.S. Department of Veterans Affairs that provides eligible veterans, active-duty service members, and in some cases, surviving spouses, with an easier path to homeownership. These loans are provided by private lenders (like banks and mortgage companies) but are partially guaranteed by the VA, which reduces the lender's risk and enables more favorable terms for the borrower.

Key Benefits of VA Loans:

• Zero Down Payment Required: Buyers can finance 100% of the home's value without needing to save for a traditional down payment.
• No Mortgage Insurance: Unlike FHA or conventional loans with less than 20% down, VA loans do not require monthly mortgage insurance premiums, saving buyers hundreds per month.
• Competitive Interest Rates: VA loans typically offer lower interest rates than conventional loans, thanks to the VA’s guarantee.
• Flexible Credit Standards: VA lenders often approve borrowers with lower credit scores than required for other loan programs.
• Limitations on Closing Costs: The VA sets guidelines that restrict how much veterans can be charged in closing fees, further reducing upfront costs.
• No Prepayment Penalties: Veterans can pay off their loan early without financial penalties.

Who’s Eligible for a VA Home Loan?

Eligibility generally includes:

• Veterans with a minimum service requirement, depending on service dates.
• Active-duty service members with at least 90 consecutive days of service.
• Certain National Guard and Reserve members.
• Some surviving spouses of veterans who died in the line of duty or from service-connected disabilities.

Borrowers must obtain a Certificate of Eligibility (COE) from the VA to prove entitlement. Despite popular belief, VA loans can be used more than once and even simultaneously in some cases (subject to remaining entitlement).

The 2025 Surge in VA Loan Use

More people are using VA loans, and this is a clear sign of what is happening in the housing market this year. In August 2025, 7.3% of homebuyers with a mortgage used a VA loan. This is up from 6.5% in August 2023. It is also the highest rate for that month since 2019 (Redfin, 2025).

This increase is notable, especially since conventional mortgage use went down 9% compared to last year. This change shows that buyers who can get VA loans are becoming more active in the housing market. They are using good loan terms and less competition to their advantage.

For a long time, high prices, quick seller decisions, and cash offers made it hard for VA buyers. But this return of VA loans is a big moment for how mortgages work, and it means more chances for military families.

Why VA Loans Are Gaining Ground in a Buyer’s Market

The pandemic-era housing boom effectively sidelined many VA buyers. Cash investors and large-down-payment conventional buyers stole the spotlight, and sellers, inundated with offers, often bypassed VA loans. The perception was that VA offers required more paperwork, potentially slower appraisals, or stricter home condition evaluations.

But in 2025, the tide is reversing. With competition thinning and sellers facing longer time on market, VA loan users are now back in contention—and winning.

What’s Driving the Shift?

• More Homes for Sale, Less Rush: There are more homes for sale, which means less urgency. This also makes sellers more open to buyers who are not paying with cash.
• Fewer Bidding Wars: The housing market has slowed, so bidding wars are happening much less often. This gives all buyers, including those using VA loans, a better chance.
• Better Deals for Buyers: As the market cools, sellers are more willing to give buyers good deals. This includes paying for closing costs or agreeing to do repairs found during an inspection.

A Redfin agent in Tampa said it simply: "[Buyers] can make an offer with a VA loan, put almost no money down, ask for closing credits, and still get accepted." (Redfin, 2025)

The Buyer Advantage: Zero Down Meets Negotiating Power

VA buyers in 2025 have more options and less to stress about. They can make strong offers without needing a down payment. This means they keep their cash, which they can use for things like:

• Home improvements or energy updates.
• Needed repairs found during inspection.
• Savings for emergencies when the economy is uncertain.
• Furniture, appliances, or moving costs.

These are not just money benefits. The VA home loan's low upfront cost gives VA buyers the freedom to react to market changes more easily.

Also, VA buyers can often ask for:

• Closing costs paid by the seller and lower interest rates.
• Money for repairs if inspections show problems with the home.
• Better contract terms, like more time to close if needed.

VA Loans vs. Conventional Loans: Changing Seller Preferences

Conventional loans still make up most of the market. They account for nearly 78.9% of all mortgage activity across the country. But this leading position is starting to weaken.

VA loans, which sellers often saw as too much work and buyers did not use enough, are now showing their strength in a changing market.

Why VA Loans Are More Competitive Than Ever:

• Processing Times Are Comparable: Modern VA loans compete well with conventional timelines when handled by experienced lenders.
• Solid Financial Backing: VA buyers generally come with stable employment histories and government-backed guarantees.
• Falling Seller Selectivity: In softer markets, sellers are more focused on solid offers than just cash or high down payments.

While some lingering bias exists—especially among uneducated sellers—a growing number of real estate professionals are pushing back, advocating for VA buyers and demonstrating that their offers are both reliable and profitable to accept.

Top Cities for VA Loan Usage and What It Reveals

Some cities are seeing many more VA loans. These are often places with many military members or homes that fit well with VA loan rules.

2025’s Top Places for VA Loan Use:

• 🏙️ Virginia Beach, VA: 43.2% of purchases—a very high rate that shows its large military population.
• ☀️ Jacksonville, FL: 17.2%—has both affordable homes and military bases, which makes it popular for VA loans.
• 🏛️ Washington, D.C.: 16.7%—government workers and agents who know about VA loans help here.
• 🌊 San Diego, CA: 15.2%—has Naval bases and expensive homes, where VA benefits really help.
• 🎰 Las Vegas, NV: 11.9%—a big increase that shows both affordable homes and smart buying by veterans.

These cities show how local market conditions and military populations work together to affect VA loan activity. Las Vegas, especially, shows what could happen in markets where VA loans become very common.

Steve Hawks’ Take: VA Loans in Las Vegas

Las Vegas real estate expert Steve Hawks has always supported VA loans. His city keeps growing with military families and veterans moving in.

“In today’s slower market,” Hawks says, “VA buyers can get their offers accepted right away, especially with good advice. No down payment and the ability to negotiate means a lot of value.”

Hawks and other real estate pros who know about VA loans teach buyers and sellers how these deals work. They clear up wrong ideas about how long things take, appraisals, and how dependable closings are. Their efforts are very important in changing opinions and helping military buyers find homes.

The Roadblocks: Why Some Sellers Still Hesitate

Despite the clear advantages of VA loans, not all sellers are eager to accept them. Common concerns include:

• Fear of Delays: Some sellers mistakenly believe VA appraisals are slower or stricter.
• Condition Requirements: VA guidelines require homes to meet specific livability standards, which can spook sellers with dated properties.
• Unfamiliarity: Simple lack of understanding leads many to default to conventional offers.

But education works. Real estate agents, lenders, and VA advocacy groups are increasingly stepping in to bridge the gap. When sellers learn that VA loans are no more burdensome—and potentially more secure—than other types, acceptance rises.

FHA vs. VA: How They Compare in 2025

Many buyers without large savings turn to FHA or VA-backed loans. In 2025, FHA usage dipped slightly, making way for VA to rise.

💡 Bottom Line: If you qualify for a VA loan, it typically delivers better long-term affordability and fewer upfront hurdles compared to FHA.

Success Stories: Military Families in Today’s Housing Market

From Virginia Beach to San Diego, military buyers are finally finding it easier to own a home. Less competition, more homes for sale, and better market understanding have greatly improved how often sellers accept VA offers.

For example:

• In Las Vegas, military families new to the area are regularly buying homes with no money down.
• In places like San Diego, sellers who are more flexible are choosing strong VA-backed offers. They are picking these over conventional offers that might be higher but also riskier.

These successful deals show how powerful VA loans are in the real world, especially when the economy is slow.

What the Rise in VA Loans Signals About Mortgage Trends

More VA loans being used does not just mean more activity from veterans. It also points to bigger changes happening in the entire mortgage industry.

Key Trends:

• Buyers are using government-backed options because of tighter budgets and higher interest rates.
• Younger veterans are buying homes sooner, often as first-time homebuyers.
• The idea of a traditional down payment is being challenged. This is starting talks about better ways to handle today’s home affordability problems.

As fewer people use conventional loans, the VA loan is now filling a role that used to be for buyers with more money and investors.

What This Means for Buyers and Sellers Alike

For military buyers, the 2025 housing market offers a rare chance, like one every ten years. You now have more homes to choose from, more power in negotiations, and tools like a VA home loan. All of this helps you buy a home on your terms.

For sellers, taking a VA-backed offer could be one of the best deals you get, especially in this changing market. If sellers understand and accept them, VA buyers can be some of the most serious and easiest customers to work with.

Final Thoughts: VA Loans as a Strategic Tool in 2025’s Housing Market

The 2025 housing market is getting back to normal. For buyers who can get VA loans, the time is perfect. VA loans are no longer ignored because of cash buyers. They are now playing a big part in home negotiations all over the country.

These loans combine low upfront costs, steady approval processes, and room to negotiate. This makes them a great choice in almost any housing situation. As the market stays good for buyers, military borrowers should feel ready to take action.

Citations:

• Redfin. (2025). VA loans uptick amid slower housing market
• Redfin. (2025). Seller price cuts US housing October 2025
• Redfin. (2025). Shutdown slows housing activity in federal-worker heavy markets

Are you a veteran looking to buy in Las Vegas? Connect with VA-savvy advisors like Steve Hawks to turn your benefits into keys to a new home.