For those looking to use a VA loan to buy their next home, certain states stand out as winners for military families.
VA loans can help veterans and active-duty service members turn their dream of homeownership into a reality.
Partly guaranteed by the U.S. Department of Veterans Affairs, they don’t require down payments or charge monthly mortgage insurance, unlike many other loan programs.
If you or a loved one are eligible for a VA loan, you may be wondering where to buy a home. According to Military.com, Texas, Florida, North Carolina, Virginia, and Tennessee are all solid options.
“What makes these states attractive isn't necessarily one standout benefit. It's the combination of things that can make life after the military a little easier, whether that's keeping more of your retirement income, finding a good civilian job, or living somewhere with a strong veteran community,” says Chris Birk, vice president of mortgage insight at Veterans United Home Loans in Columbia, MO.
By becoming familiar with what each state has to offer, you could narrow down your home search and find a property that aligns with your lifestyle budget.
5 states worth considering when buying a home with a VA loan
From no property taxes and lower housing costs to veteran-specific tax breaks, these military-friendly states can make homeownership more accessible and affordable.
Virginia is among the states that offer a real estate exemption for qualifying veterans. (Getty Images) 1. Virginia
According to data from the VA, Virginia is one of the leading states for VA-backed loans, likely due to its large military population and steady real estate market growth.
“Northern Virginia’s proximity to government facilities like the Pentagon, Fort Belvoir, and Marine Corps Base Quantico allows many veterans to transition into federal or defense-related employment without uprooting their families,” says Dell Jeanty, real estate agent at Dell Residential in Arlington, VA.
The state offers real estate tax exemption for qualifying veterans with a 100% service-connected, permanent and total disability. Additionally, due to the major military installations and frequent military relocations, Virginia has a high concentration of assumable loans.
“This means you could potentially take over a seller's lower, locked-in historical interest rate and further your savings as a veteran,” Jeanty adds.
There is a growing community of military families in North Carolina. (Getty Images) 2. North Carolina
Many markets in North Carolina, including Charlotte, offer opportunities for veterans at different stages of life, whether you’re transitioning to a civilian career or retiring.
“There’s an established veteran community and plenty of ways to build new connections through work, recreation, and shared interests. You can choose city living or quieter settings with more land while enjoying professional sports, outdoor activities, and travel access,” says Ashley Horton, global real estate adviser at Premier Sotheby's International Realty in Charlotte.
Also, military installations across the Carolinas like Fort Liberty and Camp Lejeune are within driving distance, and highway connections and a major airport keep you connected to other markets. Plus, North Carolina lets qualifying military retirees deduct military retirement pay from state taxable income.
“Compared with markets in other states, those in North Carolina can give you more home, more space, and more options for the same budget. If you’re relocating from higher-cost cities, the equity from your previous home can stretch further here,” adds Horton.
Florida continues to be desirable to military familes. (Getty Images) 3. Florida
Florida is one of those states where you’ll never run out of things to do.
You can enjoy country living with land and wide-open spaces, a coastal environment with beautiful beaches and waterways, or a neighborhood close to shopping, restaurants, and entertainment. And of course, you can’t beat being able to enjoy the outdoors almost year-round.
“I live and sell in the Orlando area, which is most well known for the Disney and Universal theme parks. In fact, Universal Studios Orlando just opened the Epic Universe park—fun for the whole family,” says Christina Rordam, a real estate agent at Florida Realty Investments in Orlando.
Also, since there are fewer homebuyers to compete with in Florida, you may have more leverage to negotiate ideal terms.
According to Rordam, there are currently two groups of sellers: the motivated and the unrealistic.
“The motivated home sellers are moving for job transfers, divorcing, having kids, and needing more space. These types of life events really encourage sellers to take a long, hard look at the current market and cut buyers a good deal,” Rordam explains.
In the past, it was almost unthinkable to negotiate price, repairs, and closing costs. Now, it's much more likely.
Rordam has a cash buyer for whom she negotiated $1,600 in repairs and $20,000 off the purchase price on a home that had been on the market less than a week.
In addition, Florida has no state individual income tax and some valuable property tax benefits for qualifying veterans.
“For example, certain veterans with service-connected disabilities may qualify for additional homestead property tax exemptions, and veterans with qualifying total and permanent service–connected disabilities may be eligible for a full exemption from property taxes on their homestead. Those savings can make a real difference in the overall cost of owning a home,” says Sheena Haney, broker and owner at Haney Signature Realty in St. Augustine, FL.
To Haney, Florida is more than just a place to buy a home.
“It’s a place where you can really enjoy the lifestyle, raise a family, retire, and make lasting memories,” adds Haney.
Texas has a plethora of options. (Getty Images) 4. Texas
Texas gives veteran buyers something incredibly valuable: options.
In Central Texas, for example, you’ll find everything from established neighborhoods to new construction, where builders may offer incentives to make homeownership more affordable.
“San Antonio is especially attractive because of its relatively low cost of living, allowing many military families to stretch their housing budgets further,” says April Guerra, real estate agent at LPT Realty in Leander, TX.
Put simply, the Lone Star State doesn’t force you to sacrifice space, amenities, or lifestyle to find a home within your budget.
“If you’re a veteran looking to establish roots after military service, that flexibility can make a meaningful difference,” Guerra explains.
Texas also has a long-standing connection to the military.
“I grew up in San Antonio, proudly known as Military City, USA, home to Joint Base San Antonio, including Fort Sam Houston, Lackland, and Randolph. Now, working in the Austin area, I'm also near Camp Mabry and Fort Hood. Military families are an important part of these communities,” says Guerra.
There’s an established VA healthcare system as well.
“For example, in the Dallas-Fort Worth Metroplex, Dallas has a full-service VA hospital. Fort Worth has a large VA outpatient clinic,” says Elizabeth Lane, real estate agent at HomeSmart Realty in Dallas.
Additionally, Texas offers no state individual income tax, potential property tax exemptions for qualifying disabled veterans, and access to military and veteran support networks.
There's also a strong sense of community and diverse employment opportunities.
“Companies like Lockheed Martin and Bell Textron have a large presence in North Texas and like to recruit veterans,” adds Lane.
There are four military bases in Tennessee, making it another desirable location. (Getty Images) 5. Tennessee
Tennessee offers a unique mix of benefits for military homebuyers.
First and foremost, there’s no state income tax.
“On top of that, Tennessee has some of the lowest property taxes in the U.S., ranking roughly eighth to 10th lowest, depending on the specific index,” says Wendy Monday, real estate agent at Broker Onward Real Estate in Nashville, TN.
By contrast, states such as New Jersey and Illinois have significantly higher tax rates, which add considerably to the cost of homeownership.
Also, Nashville is one of the premier healthcare hubs in the country, making top-quality medical care exceptionally accessible locally.
It boasts an incredibly high density of Level 1 Trauma Centers, top-tier children's hospitals, and specialized emergency rooms right in the metro area.
“You won't have to travel to another city or state if you or a family member ever face a complex diagnosis or require a rare medical specialist,” Monday explains.