5 Cities Where Veterans Are Buying the Most Homes and What They’re Paying in Interest

Active and retired U.S. military service members receive a major benefit — the Veterans Affairs (VA) home loan.

Mortgage loans backed by the VA offer more favorable terms than traditional mortgages, including no down payments on most properties, lower interest rates and no need for private mortgage insurance (PMI). This makes it easier for current service members and veterans to buy their own homes.

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Where are U.S. veterans using their VA home loans? A recent study by Smart Asset analyzed 2023 VA home loan data, finding veterans prefer mid-Atlantic states and low-tax states like Texas and Nevada. Here are the five cities seeing the most VA home loan action, along with their median interest rates and property values .

Virginia Beach-Norfolk-Newport News, Virginia

• Number of VA loans issued: 11,392
• Median interest rate: 6.3%
• Median home value: $345,000

The Hampton Roads area, which includes the cities of Virginia Beach, Norfolk and Newport News, hosts a number of military facilities, including several U.S. Navy bases. Thus, it’s not surprising that many U.S. service members and veterans opt to buy a home there.

Hampton Roads has a reputation for being very family-friendly, and its numerous beaches and wide-ranging activity offerings make it an excellent place to live.

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San Antonio-New Braunfels, Texas

• Number of VA loans issued: 9,526
• Median interest rate: 5.8%
• Median home value: $345,000

San Antonio hosts several large U.S. Army and Air Force bases, including Camp Bullis and Lackland Air Force Base. Service members and veterans who opt to buy a house in the area benefit from the proximity to the bases. San Antonio’s low cost of living, exciting attractions and great Tex-Mex food are also big resident draws.

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Jacksonville, Florida

• Number of VA loans issued: 5,880
• Median interest rate: 6%
• Median home value: $365,000

The U.S. Navy has a significant presence in Jacksonville with the Navy Submarine Base Kings Bay nearby. Current service members and veterans who choose to buy a home in Jacksonville benefit from the state’s lack of personal income tax, plus gorgeous beaches, museums and excellent dining options.

Tampa-St. Petersburg-Clearwater, Florida

• Number of VA loans issued: 6,263
• Median interest rate: 6.1%
• Median home value: $405,000

Tampa is home to the MacDill Air Force Base, as well as the U.S. Coast Guard St. Petersburg. Service members and veterans who buy a home in Tampa can experience the city’s white sand beaches, golf courses and shopping centers. The area is also the site of a popular theme park, Busch Gardens Tampa Bay.

Las Vegas-Henderson-Paradise, Nevada

• Number of VA loans issued: 4,285
• Median interest rate: 6%
• Median home value: $435,000

Nellis Air Force Base, which supports the U.S. Air Force and other military branches, is located near Las Vegas. Service members and veterans who purchase a home in the area benefit from Nevada’s lack of personal income tax and low property taxes. Las Vegas is also one of the world’s premiere tourist cities with many attractions, including the Las Vegas Strip.

This article originally appeared on GOBankingRates.com : 5 Cities Where Veterans Are Buying the Most Homes and What They’re Paying in Interest