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During August, 7.3% of mortgaged homebuyers used a VA loan, up from 6.5% one year earlier, according to a data report from Redfin. This marked the highest share for that month since 2019. Nationwide, the number of VA loans rose 3% year-over-year in August, while the number of conventional loans declined 9%.

In August, 43.2% of all mortgaged homebuyers in Virginia Beach, Virginia, used a VA loan, the biggest share of any major metro. Next comes Jacksonville, Florida (17.2%), followed by Washington, DC (16.7% – the highest August share for that market in 14 years). Redfin attributed the increased level of VA loans being used to the current buyer’s market environment.

“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. “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.”