With changing market trends, veterans and military families are searching for affordable cities to buy homes and settle down.
VA loans give veterans a major advantage, including no down payment, competitive interest rates, and no private mortgage insurance (PMI). However, choosing the right city is essential, as factors like access to veteran services, job markets, and affordable homes can greatly influence quality of life.
Below are some of the best cities for veteran homebuyers in 2024, based on market conditions, affordability, and the availability of veteran resources.
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San Antonio, Texas: A Top Destination for Veterans
San Antonio, known as Military City, USA, is home to Joint Base San Antonio (JBSA) and several other military installations. The city offers a wide range of veteran services and has become a popular destination for those transitioning from active duty to civilian life. The housing market in San Antonio remains affordable, with home prices lower than those in other Texas cities like Austin and Dallas.
- Median home price: $300,000
- Market trends: San Antonio saw a 4% increase in home prices over the last year. The market remains stable, making it an attractive option for veterans looking to build equity.
Why veterans choose San Antonio:
- Affordable housing compared to other large cities in Texas
- Strong military presence with a large veteran community
- Access to excellent healthcare through the San Antonio VA Medical Center
- Educational benefits through the Hazlewood Act, which offers free tuition at state colleges for Texas veterans
“San Antonio offers a perfect mix of affordability and veteran resources,” says Thomas Hale, Senior Mortgage Advisor at Patriot Lending Solutions. “The city’s strong military connections make it easy for veterans to transition and find support.”
Virginia Beach, Virginia: A Coastal Community with Strong Military Ties
Virginia Beach, with its proximity to Naval Station Norfolk and other military bases, is a popular location for veterans and their families. The city’s coastal setting, steady job market, and veteran-friendly programs make it an attractive place to settle.
- Median home price: $375,000
- Market trends: The area experienced a 3% increase in home prices over the past year, with steady demand for single-family homes.
Why veterans like Virginia Beach:
- Access to VA medical facilities and veteran resources
- Military-friendly employers offering job opportunities for veterans
- Recreational activities, including beaches and parks
- Relatively affordable cost of living compared to other East Coast cities
“Veterans are drawn to Virginia Beach because of the job opportunities and access to support services,” explains Angela Morris, Regional Lending Manager at Freedom Home Loans. “It’s also a great place for families, with strong schools and outdoor activities.”
Colorado Springs, Colorado: Outdoor Adventure and Community
Colorado Springs is known for its scenic views, active lifestyle, and proximity to several military installations, including Fort Carson and Peterson Space Force Base. Veterans enjoy the balance of city amenities with access to outdoor recreation.
- Median home price: $420,000
- Market trends: Prices have increased by 5% over the past year, but the city offers good long-term value and steady demand for homes.
Why veterans choose Colorado Springs:
- Strong sense of community with many veteran-owned businesses
- Numerous outdoor activities, such as hiking, fishing, and skiing
- Top-rated schools and family-friendly neighborhoods
- Availability of healthcare through the Colorado Springs VA Clinic
Tampa, Florida: Affordable Living with No State Income Tax
Tampa, home to MacDill Air Force Base, offers affordable housing and a range of amenities for veterans. The lack of state income tax makes Florida a popular state for retirees and military families looking to maximize their income.
- Median home price: $350,000
- Market trends: Tampa has experienced a 6% rise in home prices, but it remains more affordable than other parts of Florida like Miami.
Why veterans like Tampa:
- Year-round warm weather and outdoor activities
- No state income tax, which benefits retirees
- Access to top-tier healthcare at the James A. Haley Veterans’ Hospital
- Discounts at local attractions and community events
“Tampa is a popular choice among veterans because of its affordability and tax benefits,” explains Michael Stanton, Mortgage Consultant at Veteran Financial Group. “Many retirees also appreciate the warm weather and active lifestyle.”
Phoenix, Arizona: Affordable Homes and Growing Opportunities
Phoenix offers an affordable housing market with plenty of job opportunities for veterans. The city is known for its sunny weather, low property taxes, and access to VA medical services.
- Median home price: $400,000
- Market trends: Home prices have grown by just 2% year-over-year, making Phoenix a more balanced market with steady growth potential.
Why veterans are moving to Phoenix:
- Access to quality healthcare through the Phoenix VA Health Care System
- Opportunities to network through veteran-focused job fairs and events
- Affordable cost of living with low property taxes
- Outdoor activities like hiking, golfing, and fishing
Comparison Table: Median Home Prices and Market Trends
| City | Median Home Price | Year-over-Year Growth |
|---|---|---|
| San Antonio, TX | $300,000 | 4% |
| Virginia Beach, VA | $375,000 | 3% |
| Colorado Springs, CO | $420,000 | 5% |
| Tampa, FL | $350,000 | 6% |
| Phoenix, AZ | $400,000 | 2% |
VA Loan Benefits vs. Conventional Loans
VA loans provide veterans with several advantages that help them purchase homes more easily. Below is a comparison of key loan features:
| Feature | VA Loans | Conventional Loans |
|---|---|---|
| Down Payment | 0% | 5% – 20% |
| PMI Requirement | No | Yes |
| Credit Score Flexibility | High | Moderate |
| Interest Rates | Lower | Higher |
Tips for Veteran Homebuyers in 2024
- Get pre-approved for a VA loan: This shows sellers you are a serious buyer and gives you an edge in competitive markets.
- Work with a VA-savvy real estate agent: Some agents specialize in working with veterans and understand how to use VA loan benefits to your advantage.
- Research local veteran programs: Many cities offer additional benefits, such as property tax exemptions or homebuyer grants.
- Evaluate resale potential: Consider future home value when choosing a property, especially if you may relocate.
- Budget for closing costs: While VA loans eliminate the down payment, you will still need to cover closing fees.
FAQs About VA Loans
1. Can veterans use VA loans more than once?
Yes, VA loans can be reused multiple times, as long as eligibility requirements are met.
2. Are there income limits for VA loans?
No, VA loans do not have income limits, making them accessible to a wide range of buyers.
3. Can VA loans be used for investment properties?
No, VA loans are only available for primary residences.
4. How long does it take to get approved for a VA loan?
Most VA loans are approved within 30 to 45 days.
5. What credit score do you need for a VA loan?
While there is no official minimum, most lenders prefer a score of 620 or higher.
6. Can VA loans cover closing costs?
Yes, sellers can pay some or all of the buyer’s closing costs, reducing upfront expenses.
7. Are VA loans available for new construction?
Yes, VA loans can be used for new construction, although the process may take longer.
8. Is PMI required for VA loans?
No, VA loans do not require private mortgage insurance, saving buyers significant monthly costs.
