Nearly half of Veterans (49%) feel homeownership is currently out of reach, according to a recent survey from NewDay USA.

But many are closer than they think. And you might be, too.

If you’re a Veteran, you probably know the Veterans Affairs (VA) home loan benefit exists – it’s been around for over 80 years. What you might not know is what it actually covers. Three misconceptions trip up Veterans the most (see graph below):

Any one of those beliefs could be holding you back. Let’s walk through all three, so you have the information you really need.

You May Not Have To Put Any Money Down

The potential to put zero money down is probably the biggest perk of a VA loan, but most homebuyers don’t even realize that’s an option. According to the NewDay USA survey, many respondents guessed they’d need to save somewhere between $10,000 and $19,900 before they could buy. That’s years of saving for an upfront cost that isn’t always required.

You May Have Lower Closing Costs

According to the Department of Veterans Affairs, with VA loans, there can be limits on the types of closing costs buyers have to pay. That means more money stays in your pocket on closing day – and you have less to save up for before you can buy. The benefit combined with the down payment perk can speed up your buying timeline.

Your Monthly PMI Costs Could Be $0

Unlike many other loan options, VA loans typically don’t require private mortgage insurance (PMI), even with low or no money down. If you take out a conventional loan instead, you could pay $100 to $300 a month in PMI until you hit 20% equity, according to NewDay USA. Over time, that’s a difference of thousands of dollars.

Your BAH & BAS May Help You Qualify for More

If you’re on active duty or if you’re a qualifying reservist, your Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) may count toward income qualification on a VA loan. So, if you were running the numbers without factoring your BAH or BAS in, you could qualify for more than you thought. Both BAH and BAS are non-taxable, so they can help raise the amount you can qualify for. 

Bottom Line

VA home loans can put homeownership within reach, and a trusted lender can help make sure you understand the details before you move forward.

If you’re active duty, you’ve served, or know someone who has, connect with a trusted lender who can walk you through whether you’d qualify and what the VA benefit offers. You may be able to buy a home sooner than you thought.

If you’ve always assumed a newly built home is just not in your budget, you should know the math just got a little friendlier.

The median sale price of a newly built home is now at its lowest level since 2021, according to the latest data from the Census. And on top of that, builders are still rolling out incentives to bring buyers through the door.

Here’s what’s happening, and what it means if you’re shopping right now.

Prices on Newly Built Homes Have Come Down

After a steep climb during the pandemic years, prices have eased a bit. The median sale price of newly built homes is sitting at about $390,000. That’s the lowest it’s been in nearly five years (see graph below):

While local markets vary, the national trend is moving in your favor, especially if you’re a first-time buyer. According to Zonda, prices in the entry-level price range have dropped roughly 2.7% over the past 12 months – more than any other price tier.

That doesn’t mean every home in every market is suddenly affordable. But it does mean that, broadly, you’ll see the best prices on new builds since 2021, if you’re buying now.

Why This Isn’t a Repeat of 2008

And just in case you’re thinking it, lower prices don’t mean the new home market is in trouble. Builders today are being intentional about how much inventory they have, so it doesn’t pile up the way it did in 2008.

If you look back up at the graph, you’ll see that even after the recent improvement in new home prices, they’re still higher than pre-pandemic norms. So, this isn’t a crash. It’s a builder strategy to keep inventory moving.

Homebuilders Are Still Sweetening the Deal

Lower sticker prices aren’t the only break buyers are getting. According to the National Association of Home Builders (NAHB), 60% of builders are currently offering some form of incentive to attract buyers. Those typically include:

• Help with closing costs: Some builders are covering thousands of dollars in fees to reduce the upfront cost of buying.
• Extra upgrades: Think premium finishes, appliance packages, and designer features, often added at no extra cost.
• Mortgage rate buydowns: When the builder pays to lower your mortgage rate, which reduces your monthly payment.
• Price cuts: Over one in three builders (36%) are cutting prices right now, averaging about 5% off list price (see graph below):

That last point catches a lot of buyers off guard – most assume that builders won’t budge on price.

But builders need to move what they’ve built. That’s a different mindset than a homeowner deciding whether to budge on price. So, you may find they’re more open to adjusting the price than you’d think. As Joel Berner, Senior Economist at Realtor.com, puts it:

“. . . many existing-home sellers resort to taking down their listing instead of taking less than their desired price, but builders are more motivated to sell their inventory than owner-occupants . . .”

And if you use the version of the graph that shows 2008 prices, you can even reference that in this explainer.

And if here, should I change the last sentence of the lede?

Bottom Line

Builder incentives and lower new home prices are working to your advantage in a way they haven’t in years. Connect with a local real estate agent to see what’s available in your area and what kind of deal a builder may be willing to make.

You may have seen the headlines lately about mortgage debt in America hitting a record high. And maybe your brother-in-law brought it up at the dinner table like he’s been waiting all week to spark a debate.

Here’s the thing. He’s not wrong. But he only has half the story. And the half he’s missing? It changes everything.

Spoiler: homeowners are on stronger footing than the headlines suggest, and the housing market has more going for it than most people realize.

The Headline Number Is Real, But It’s Missing Context

Yes, according to the Federal Reserve, there is currently about $14 trillion in mortgage debt in the United States. That is an all-time high. And when you hear that alongside stories about people struggling to pay their bills, it’s easy to assume the worst.

But here’s what the data actually shows (see graph below):

This chart from the Federal Reserve tracks three things from 2000 to today: the total value of all U.S. homes (the green line), the equity homeowners hold in those homes (the blue line), and the total mortgage debt owed on them (the orange line).

Right now, home values sit at $47.9 trillion. Homeowner equity is at $34.1 trillion. And the mortgage debt everyone’s worried about? It’s $14.4 trillion.

Debt is at a record high, sure. But the equity homeowners have built up is more than double that number, and it’s also near a record high.

Here’s the part worth pausing on. See the years between 2008 and 2013 where the orange line was higher than the blue one? That’s when the housing market was in genuine trouble. When debt exceeds equity like it did back then, homeowners have no cushion.

So, when prices dropped in 2008, millions of people owed more than their homes were worth and had nowhere to go. That’s what a housing crisis actually looks like. That’s not what’s happening today. Right now, it’s just the opposite.

The gap between what people owe and what they own has never been wider – in a good way. Today, they have far more equity than debt.

Most Homeowners Are in a Rock-Solid Position

So, we know equity is high nationally. But what does that actually look like at the individual homeowner level? This next chart uses data from ATTOM and the Census to put it in perspective:

Out of all owner-occupied homes in the country, 33.3 million are owned completely free and clear – no mortgage, no lender, no risk of foreclosure. Another 22.3 million homeowners have more than 50% equity in their homes.

Add those together, and you’re looking at nearly two-thirds of all homeowners who have either paid off their mortgage entirely or have such a substantial equity stake that they’re in an extremely stable position.

The remaining slice – 29.1 million homes with less than 50% equity – isn’t a sign of distress, either. That includes plenty of people who recently bought, are building equity over time, and are doing just fine. 

The point is this isn’t a market teetering on the edge. It’s a market built on an unusually strong foundation.

Bottom Line

Record mortgage debt makes for a scary headline. But context matters.

Equity is near an all-time high, home values have surged, and the vast majority of homeowners are in a position of real financial strength. The conditions that made 2008 a crisis simply don’t exist right now.

If you’re wondering what all of this means for your situation, whether you’re thinking about buying, selling, or just trying to make sense of the market, a local real estate agent would love to talk it through with you. Reach out anytime. No pressure, just answers.