Why San Antonio, Texas Is The VA Loan Capital Of The U.S. 

By some metrics, the San Antonio metro area could be considered the VA loan capital of the United States. Last year, more VA loans were generated in Bexar County, Texas (in the San Antonio metro area) than in any other county in the U.S. 

Read on to discover why VA loans are so popular among home buyers in the San Antonio area and how you might benefit from using this program.  

A Beacon of Military Heritage 

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With centuries of military history, San Antonio has earned the title “Military City USA.” Its institutions, sites, and culture all bear witness to its long military history. Joint Base San Antonio, made up of Fort Sam Houston, Lackland Air Force Base, and Randolph Air Force Base, is one of the most recognizable representations of this legacy in the United States. 

Strong ties have been established between the city and its military community due to these military facilities. Honoring and helping veterans, active-duty military members and their families is something that San Antonians are very proud of.  

San Antonio has distinguished itself as a ray of hope for veterans pursuing homeownership in the housing and financial industries by fostering a culture of appreciation and respect. 

Bexar County Had Highest VA Loan Volume 

The U.S. Department of Veterans Affairs recently published a report showing VA loan usage by country for fiscal year 2023. That report revealed the total number of VA loans generated for every county in the U.S., with a breakdown showing the number of purchases and refinances. 

According to that report, Bexar County, Texas, had more VA loans processed in 2023 than any other U.S. county. And by a fairly wide margin. 

Here are the top 5 housing markets for VA loan usage last year: 

• Bexar County, Texas: 7,090 
• Maricopa County, Arizona: 6,021 
• El Paso County, Texas: 5,214 
• Clark County, Nevada: 4,674 
• San Diego County, California: 4,019 

Most of the VA loans in Bexar County (7,017) were purchase loans used by home buyers. Only a tiny percentage were used for refinancing. 

Overall, 2023 was a light year for VA loan activity due to a spike in mortgage rates that reduced home loan activity across the board. But if we zoom out and look at the past decade, we can see that these counties usually appear in the top five for VA personal loan usage. 

Last year, Bexar County, Texas, came out on top, giving it the unofficial title of VA loan capital of the United States. 

Economic Landscape 

The financial industry of San Antonio is paramount in bringing exceptional status to the city and making it VA loan capital. From healthcare and aerospace to cybersecurity and tourism, the city has a wide range of industries that can provide employment options for veterans making the transition from the military lifestyle into civilian life.  

This steady job market, as well as the cost of living below the national average, heightens the affordability of homeownership among military personnel and veterans.  

Likewise, potential veterans, especially those using VA loan statement of service, are encouraged by San Antonio’s robust resiliency, which is demonstrated by consistent appreciation rates and low foreclosure rates. 

Major Military Presence in the San Antonio Area 

Why are VA loans so popular among home buyers in the San Antonio area? 

To answer this question, we have to discuss the types of borrowers who can use this program.  

Unlike FHA loans (another government-backed mortgage program), VA loans are not available to just anyone. This program caters to military members, veterans, and certain qualifying spouses. It also has specific VA loan certificate of eligibility requirements regarding the length of time a person has served in the military. 

Because of this, cities with a large number of military bases and a high military population tend to have a lot of VA loan activity as well. And that’s the case within the San Antonio metropolitan area. 

Bexar County is home to several significant military installations, including Fort Sam Houston, Lackland Air Force Base, and Randolph Air Force Base. So, a large concentration of active-duty, reserve, retired, and former military personnel reside in the area. 

In fact, San Antonio (the most populous city and official seat of Bexar County) is known as “Military City, USA.” It even has its own trademark and logo to that effect. San Antonio has a long history of supporting the military and offers various programs and services tailored to veterans and their families. 

Bexar County also has a strong presence in the Department of Veterans Affairs, with offices, hospitals, and clinics to process VA loans benefits and healthcare. This encourages veterans to remain in the area after leaving military service and to relocate from other parts of the United States. 

Government Initiatives 

Local, state, and federal government initiatives have also formed a part of VA lending and contributed to San Antonio’s reputation.  

The joint efforts between city managers, housing authorities, and VA offices created a unique program aimed at expediting the process of VA loans, increasing the accessibility of affordable housing, and tackling barriers to homeownership.  

Also, state laws like tax exemptions for disabled veterans and spouse housing benefits play an important role in cementing San Antonio as the place where veterans choose to become homeowners. Additionally, the San Antonio government provides loans for businesses, such as the VA small business loan and VA business loan, to those extending their market share in the current economic climate.

An Affordable Housing Market for Home Buyers 

Bexar County and the San Antonio Metro area offer relatively affordable home prices. It’s one of the most affordable real estate markets in the country when compared to many other major metro areas. 

According to the latest data from Zillow, the median home value for Bexar County, Texas, was around $262,000 as of early 2024. That was about $80,000 less than the national median price point during that same timeframe. 

In addition to having favorable home prices, the San Antonio Metro area also has more inventory available for buyers. As of January 2024, this real estate market had more than a five-month supply of homes for sale, well above the national average. 

These are just a few of the reasons why so many military members and veterans seek to buy homes in the San Antonio area. It also accounts for the higher-than-average rate of VA assumable loan usage across Bexar County. 

Community Support 

Beyond purely financial considerations, San Antonio’s standing as the VA loan capital is inextricably tied to its steadfast assistance of the military community. Numerous charitable programs, advocacy groups, and veteran-centric organizations are available around the city to help meet the unique needs of veterans and their families.  

These programs, which range from mental health support to career transition aid, enhance veterans’ overall well-being by promoting a sense of empowerment and belonging essential for starting the homeownership process.

Furthermore, the strong unity between citizens and veterans highlights San Antonio’s dedication to respecting and valuing its military history. 

Reasons to Use a VA Loan When Buying a House 

A lot of military members and veterans in the San Antonio area use either VA construction loan or VA renovation loan for constructing or renovating their houses. And for a reason. This program offers a number of benefits you can’t get from other mortgage products, including the following features: 

• No Down Payment: That’s right; you can finance the entire purchase price with a VA loan to buy a house in San Antonio. This feature removes one of the biggest obstacles to homeownership, allowing you to make a purchase much sooner. 

• No Mortgage Insurance: With a regular home loan, a borrower who makes a small down payment typically has to pay for private mortgage insurance (PMI) to reduce the lender’s risk. However, with a VA loan, you can buy a house in San Antonio with no down payment or mortgage insurance. 

• Flexible Criteria: Generally speaking, it’s easier to qualify for a VA loan than it is for a regular conventional mortgage loan. Lenders who offer these loans receive a partial guarantee from the government, which reduces their risk. So they can be more flexible when approving borrowers. 

These benefits explain why many home buyers across the San Antonio metro area use the VA loan program when buying a house. No other mortgage product can compare! 

Conclusion 

San Antonio, located in Texas, has become synonymous with the American spirit of gratitude and the enthusiastic and solid support given to its military community.  

VA loan capital of the U.S. is our city, and it stands for the ideals of access, opportunity, and inclusivity that veterans can use to finally realize their dream of having their own homes.  

Its military heritage dates back to the Revolutionary War, its currently thriving economy, and its undeterred standing by the veterans make San Antonio a place where those who have served the country honorably can look forward to hope and stability.