An average VA loan costs around $257,000
Millennial veterans – veterans born between 1981 and 1996 – have taken out a lot of VA loans in the past three years, boosting the loan growth of the VA purchases.
A recent study from Veterans United Home Loans compared purchase loan volume in metro areas with a minimum of 75 purchase loans for millennials from 2015 to 2018. It also looked into the top 30 cities where millennial veterans have taken out the most VA loans. Ten of the top 30 cities were in Texas (4), Florida (3), and Georgia (3).
Results showed that the average credit score for millennial buyers rose to 701 in 2018, up eight points from 693 in 2015. In the top 30 cities, the average purchase price for millennial VA buyers was $257,075 last year. Los Angeles had the highest price at $458,813, while VA loans cost $169,756 in Killeen-Fort Hood, Texas – the lowest among the top 30.
Education benefits, the lack of student loans, and the fact that VA loans do not require a down payment or mortgage insurance gave younger veterans an edge in the home-buying curve, Veterans United said.
“Millennial veterans and service members are using their hard-earned VA loan benefits to jump into the housing market now, instead of being stuck on the sidelines like so many of their civilian counterparts,” said Chris Birk, the director of education at Veterans United. “The VA loan program was created 75 years ago to level the playing field and boost access to homeownership for those who serve our country. Today, it’s still fulfilling that original mission and making a huge difference for a new generation.”
Here are the top 10 cities and their VA purchase loan growth:
- Jacksonville, Fla. MSA (228.80%)
- Tampa-St. Petersburg-Clearwater, Fla. (144.80%)
- San Antonio, Texas MSA (135.50%)
- New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. MSA (129.50%)
- Hinesville-Fort Stewart, Ga. MSA (116.90%)
- Miami-Fort Lauderdale-Pompano Beach, Fla. MSA (107.60%)
- Virginia Beach-Norfolk-Newport News, Va.-N.C. MSA (107.30%)
- 8. Fayetteville, N.C. MSA (103.70%)
- Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va. MSA (102.30%)
- Chicago-Naperville-Joliet, Ill.-Ind.-Wis. MSA (102.30%)
