Dallas-Fort Worth: A Thriving Hub for Veterans in the Housing Market

Veterans United Home Loans Dallas Fort Worth — The number of Veterans United Home Loans doubled year-over-year, according to the Department of Veterans Affairs (Facebook.com/vuhomeloans)

The Dallas-Fort Worth (DFW) metropolitan area has consistently proven to be a vibrant and welcoming community for veterans. In 2020, this trend was particularly evident in the housing market, where DFW experienced remarkable growth in veteran home loan utilization. This period marked a significant positive shift, offering expanded opportunities for those who have honorably served our nation to achieve their homeownership dreams.

For veterans in the Dallas-Fort Worth region, the housing landscape has been exceptionally favorable, showcasing a strong commitment to supporting military families. The Department of Veterans Affairs (VA) data revealed an impressive surge in VA-backed home loans, with the number of Veterans United Home Loans in the DFW market doubling year-over-year. This extraordinary growth underscores the region’s appeal and the effectiveness of VA loan benefits in facilitating veteran homeownership.

The Unprecedented Rise of VA Home Loans in 2020

Nationwide, 2020 was a landmark year for the VA home loan program. The VA backed an astounding 1.2 million loans, a figure that surpassed the combined totals of several preceding fiscal years and set a new record in the 76-year history of this crucial benefit program. This surge wasn’t a one-off anomaly but part of a sustained upward trajectory, marking the ninth consecutive year that VA purchase loans demonstrated year-over-year growth. This national trend was significantly amplified in key metropolitan areas, with Dallas-Fort Worth leading the charge.

DFW Leads the Nation in VA Loan Growth

Within this national phenomenon, the Dallas-Fort Worth-Arlington metropolitan area stood out as a beacon of veteran housing support. The region saw an incredible 24,934 VA-backed loans in 2020, representing a staggering 119.05 percent increase over the 11,383 loans backed in 2019. This placed DFW among the top regions nationally for VA loan expansion. Comparatively, the Austin-Round Rock area also experienced substantial growth, with a 123.33 percent increase from 3,584 to 8,004 loans, highlighting a broader positive trend across Texas.

Dallas-Fort Worth’s impressive performance earned it the fifth-largest increase in VA loan usage nationwide year-over-year. The only cities that outpaced DFW in percentage growth were Fayetteville, N.C., San Diego, Honolulu, and Colorado Springs – all areas with strong military presences. This ranking firmly establishes DFW as a top-tier destination for veterans seeking to leverage their home loan benefits.

The national average for VA loan increases in 2020 was a robust 114 percent, illustrating just how exceptional DFW’s 119.05 percent growth truly was. This widespread growth reflects increased awareness of VA benefits, favorable market conditions, and a concerted effort by lenders and the VA to assist veterans.

Understanding the Power of VA Refinance Loans

Beyond purchase loans, VA refinance loans also played a pivotal role in 2020’s success story. The ability to refinance existing mortgages through the VA program offers significant advantages, including lower interest rates, reduced monthly payments, or the option to tap into home equity. The DFW area demonstrated exceptional activity in this segment as well, ranking third nationally for the biggest percentage increase in VA refinances, trailing only Houston and San Antonio within Texas. The number of VA refi’s in DFW surged by an astonishing 886 percent, far exceeding the national average.

Nationally, VA refinance loans witnessed a remarkable 241 percent increase year-over-year. This robust growth was not confined to a specific demographic; refinance loans were up more than 100 percent for every veteran age group, demonstrating the universal appeal and financial benefits of these programs. For many veterans, 2020 presented an opportune moment to secure better mortgage terms, translating into significant long-term savings and financial stability.

Why VA Loans Matter: Key Benefits for Veterans

The success of VA home loans in DFW and across the nation is rooted in the unparalleled benefits they offer to eligible service members, veterans, and surviving spouses. These benefits are designed to make homeownership more accessible and affordable, addressing common hurdles faced by traditional homebuyers:

No Down Payment: For most VA borrowers, a down payment is not required, making homeownership attainable for those who might struggle to save a large lump sum.
No Private Mortgage Insurance (PMI): Unlike conventional loans with less than a 20% down payment, VA loans do not require PMI, which can save borrowers hundreds of dollars per month.
Competitive Interest Rates: VA loans often feature some of the lowest interest rates on the market, thanks to the government backing.
Limited Closing Costs: The VA limits the closing costs lenders can charge, and some costs can even be paid by the seller, further reducing upfront expenses for the veteran.
Easier Qualification: While credit and income requirements exist, they are often more flexible than those for conventional loans.
Assumable Loans: In many cases, VA loans can be assumed by another VA-eligible borrower, which can be an attractive feature for future resale.
VA Interest Rate Reduction Refinance Loan (IRRRL): This streamlined refinancing option allows veterans to obtain a lower interest rate with minimal paperwork, often without an appraisal.
Cash-Out Refinance: Veterans can use this option to take cash out of their home equity for various financial needs, while still benefiting from the VA loan program’s advantages.

These benefits collectively provide a powerful incentive for veterans to choose VA loans, contributing to the explosive growth seen in markets like DFW.

Dallas-Fort Worth: A Top-Ranked City for Veteran Livability

Adding to the positive outlook for Dallas-Fort Worth veterans, WalletHub’s analysis of best cities for veterans to live further solidified the region’s appeal. WalletHub meticulously compared the 100 largest U.S. cities across 20 key indicators, evaluating factors related to livability, affordability, and overall veteran-friendliness. These indicators covered aspects such as economic opportunities, quality of life, and access to essential veteran services and healthcare.

While Orlando, Florida, secured the top spot in WalletHub’s comprehensive study, Texas cities, particularly those within or near the DFW metroplex, were prominently featured and well-represented among the top contenders. This strong showing reinforces the idea that Texas, and DFW specifically, offers a high quality of life for its veteran population.

DFW Cities Shine in WalletHub Rankings

Several DFW cities demonstrated exceptional performance in the WalletHub rankings, highlighting diverse strengths:

Fort Worth: Ranked an impressive 23rd nationally, Fort Worth scored particularly well in the “Health” category, placing 22nd. This indicates strong access to quality healthcare services and facilities, a critical factor for many veterans.
Plano: Following closely, Plano secured the 32nd position overall, distinguishing itself with an outstanding 14th rank in “Quality of Life.” This suggests a high standard of living, excellent amenities, and a desirable environment for veterans and their families.
Arlington: Coming in at 47th, Arlington demonstrated a robust “Economy,” ranking 18th in this crucial category. A strong economy translates to better job opportunities and financial stability for veterans transitioning to civilian life.
Dallas: The heart of the metroplex, Dallas, was ranked 48th, mirroring Fort Worth’s strength in “Health” with a 17th-place ranking. This highlights the region’s overall commitment to veteran well-being through healthcare access.
Irving: Placed 52nd, Irving also tied with Fort Worth in the “Health” ranking, further emphasizing the widespread availability of healthcare resources across the DFW area.
Garland: Rounding out the DFW representation, Garland came in at 64th and similarly tied with Fort Worth in the “Health” category, reinforcing the region’s consistent high performance in veteran healthcare.

It’s also worth noting that Austin, a major Texas city not far from DFW, was the highest-ranking Texas city overall, securing an impressive fifth place nationally. This further underscores Texas’s reputation as a veteran-friendly state.

The Enduring Appeal of Dallas-Fort Worth for Veterans

The combination of booming VA home loan activity and high livability rankings paints a clear picture: Dallas-Fort Worth is not just a place where veterans can find a house, but a place where they can build a home and a future. The region’s robust job market, diverse economy, and growing recognition of veteran-specific needs contribute significantly to this appeal. With numerous military installations nearby, a strong network of veteran support organizations, and a cost of living that remains competitive compared to other major U.S. metropolitan areas, DFW continues to attract and retain military families.

The positive trends observed in 2020 are not isolated incidents but rather indicators of DFW’s ongoing commitment to its veteran community. As the nation continues to honor the service and sacrifice of its veterans, regions like Dallas-Fort Worth stand out as leaders in providing tangible support, particularly through accessible housing solutions and a high quality of life. For veterans considering where to settle down or looking to make the most of their earned benefits, the DFW metroplex presents a compelling and increasingly attractive option.