This report conducts an in-depth analysis of active-duty service members’ potential barriers to accessing homeownership. Active-duty service members have a substantially lower homeownership rate than the general population, despite having higher incomes and educational attainment. We examine several potential explanatory factors for these observed differences, including higher mobility rates, younger age composition, and marital status. Younger age and higher mobility are the two factors most strongly associated with lower homeownership rates among active-duty service members.

We also look into mortgage characteristics among borrowers of US Department of Veterans Affairs (VA) loans, which active-duty service members can use to purchase homes. VA loans offer several benefits compared with conventional loans, including lower denial rates, lower interest rates, lower insurance costs, and lower down payment requirements. However, not all active-duty service members are fully aware of these benefits. Additionally, not all home sellers and their agents understand the strong financial characteristics of borrowers using VA loans. The report concludes by providing several recommendations to enhance homeownership opportunities for those who serve our nation.