Low down payments are one of the many benefits of buying a home with a VA loan. It’s one of the reasons they’re popular among Gen Z homebuyers.
A VA loan can get you into your new house with a zero down payment.
The Department of Veterans Affairs backs the loan program. It’s available to veterans, service members, and eligible family members.
With no down payment required, it’s no surprise that the number of VA loans given to Gen Z is going up.
And we’ve got good news:
Here at the Wendy Thompson Lending Team, we’re experts in VA loan eligibility.
We’re going to look at Gen Z mortgage practices and trends in income and jobs and explore top cities for VA loans for Gen Z to find out what makes them so attractive.
Gen Z Borrowers are Flocking to Homeownership
As of 2025, Gen Z ranges from 13 to 28 years old. While younger members are still in school, older Gen Zers are actively entering the housing market and exploring homeownership opportunities.
A Freddie Mac survey found that respondents aimed to own a home by the time they turn 30.
That’s three years sooner than the current median homebuying age of 33.
The same study reports 82% of Gen Z think saving for a down payment as a significant obstacle to homeownership.
This is why many are drawn to the VA loan program with its zero down payment.
Another hurdle between Gen Z and homeownership is student loan debt. According to PR Newswire, among Gen Zers who attend college, 73% report they’ll graduate with student loan debt.
The average repayment period for federal student loans is 20 years, meaning the debt can follow them well into their 40s.
But that isn’t stopping them from buying a home.
Although most of the generation hasn’t reached the age of majority, Gen Z holds a 2% share of the housing market.
And in 15 years, as more enter the workforce?
Economists predict more than 60% of Gen Z will be homeowners.
Are VA Loans a Good Option for Gen Z?
VA loans are an excellent choice for Gen Z, which explains why the generation is pushing the program to record-breaking heights.
The VA issued 1.2 million loans in fiscal year 2024, marking a continued increase in veteran homeownership as more Gen Z and Millennial buyers enter the market.
That’s the most loans issued in the program’s 76-year history!
But when it comes to VA loans, Millennial and Generation Z veterans accounted for half of those that were issued.
That means Gen Z veterans can own a home with:
- No down payment
- No mortgage insurance
- More flexible credit guidelines
Plus, Gen Z veterans are less likely to carry staggering student loan debt than Gen Z civilians, which can ease the path to homeownership.
With so many benefits, the popularity of VA loans makes sense.
Changes in Gen Z Income
As of 2025, Gen Z now ranges from 13 to 28 years old, with many of the older members well into their careers or in the process of building wealth.
The economic landscape has shifted significantly since the early 2020s. While the pandemic initially disrupted job opportunities and led to record unemployment, Gen Z has bounced back, benefiting from a strong job market, rising wages, and a growing gig economy.
Many Gen Zers have now graduated college, entered the workforce, and even started homeownership journeys—helped by an increased focus on remote work, tech-driven jobs, and financial literacy. Despite student loan burdens and rising living costs, this generation is seeing faster income growth than previous generations at the same age, positioning them as key players in the housing market.
Learn More – Veterans Who Don’t Shop Around Pay Higher VA Mortgage Rates!
Despite the poor economy, Gen Z income is growing at a faster pace than any other generation that came before.
Financial professionals predict they’ll out-earn Millennials in just ten years.
It might be because Gen Zers will be the most diverse and best-educated generation yet, according to the Pew Research Center.
Gen Z and the Job Market
Job market trends for Gen Zers are just beginning to emerge. Many are experiencing part-time positions, internships or full-time employment.
According to Glassdoor, software engineering and software development are the two most in-demand jobs for Gen Z.
Glassdoor also reports that Gen Zers want to work in tech, based on it being the industry that received the most job applications during their study.
Besides tech, the most favored industries are business services, finance and retail.
As a generation that relies on instant communication and the flexibility that technology brings to day-to-day interactions, it’s no surprise that they’re looking for a good work environment and flexible hours along with good pay.
sample VA loan Rates by Credit score: 600 to 620
| Fico score | APR | Mo. Payment |
|---|---|---|
|
760 – 850 |
6.00 % |
$2,085.00 |
|
700 – 759 |
6.00 % |
$2,085.00 |
|
680 – 699 |
6.125 % |
$2,204.00 |
|
660 – 679 |
6.25 % |
$2,204.00 |
|
640 – 659 |
6.50 % |
$2,272.00 |
|
600 – 639 |
6.625 % |
$2,310.00 |
*Updated 3/25 – Rates are based on a $250,000 loan with no down payment. Rates change often and differ based on your state, down payment, and loan amount.
Keep in mind that rates constantly change so it is best to contact us directly for the correct rate.
Top Cities for VA Loans for Gen Z
Gen Zers and Millennials made up 50% of the over 1 million VA loans in 2024. Some areas in the US saw more loans than others.
Virginia Beach easily saw the largest number of VA loans issued.
The top five cities for VA loans for Gen Z are:
- Virginia Beach: 8,532
- Washington, DC: 6,970
- San Antonio: 4,919
- Dallas-Fort Worth: 4,791
- Colorado Springs: 4,770
These are the same cities that topped the chart in 2024, indicating continued growth in the VA home loan market in those areas.
Even though they didn’t have the most loans, the cities of Sacramento, Calif., and Fayetteville, NC, saw the most significant growth from the previous year.
Are You Ready to Buy a Home?
If you’re a Gen Z veteran, take a look at VA loans to see if it’s a good fit for you.
The flexible credit requirements and the ability to buy without a down payment are significant benefits that can make homeownership easier to obtain.
And The Wendy Thompson Lending Team is here to help you.
We’ll show you how much house you can afford and give you sample interest rates, so you know what to expect.
What are you waiting for? Get pre-approved today!
