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, 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 2020, people in Gen Z are between eight and 23 years old. While the youngsters aren’t looking to buy a home just yet, older Gen Zers are looking for ways to make homeownership a reality.

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.

VA Home Loan Quote

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 2020.

That’s the most loans issued in the program’s 76-year history!

Of course, historically low-interest rates caused by COVID-19 helped to drive the increase, too.

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 2020, most Gen Zers are dealing with online learning and social distancing because of the coronavirus pandemic.

But the oldest is 23 years old.

That means they’re likely graduating college and entering the workforce.

The economic downturn and staggering unemployment rate put a damper on their income potential.

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


Mo. Payment

760 - 850

3.125 %


700 - 759

3.125 %


680 - 699

3.25 %


660 - 679

3.25 %


640 - 659

3.5 %


600 - 639

3.625 %


*Updated 10/15/19 - Rates are based on a $250,000 loan with a 20% 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 2020. 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 2019, 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!

The Tactical VA Loan Blueprint