The nation’s service members and veterans have a powerful perk they can deploy as they shop for homes.

Conceived after World War II as a way to help troops return to civilian life, U.S. Department of Veterans Affairs loans offer many benefits over traditional mortgages. The biggest is these buyers don’t have to make down payments or pay for private mortgage insurance. They’re also often offered lower mortgage rates at a time when rates are rising.

That can add up to some big savings for the roughly 2 million active-duty and reserve service members, and some 18 million veterans, who might be eligible for these loans.

We found the places where VA loans make up the highest percentage of new mortgages. These tend to be cheaper metropolitan areas in the South with price tags well below the median list price of $424,900 in March, according to Realtor.com® data. Unsurprisingly, all 10 are “military towns” closely associated with a nearby base.

In the 12 months through last October, the VA guaranteed 400,695 loans through the program, with more than half going to veterans and service members aged 26 to 45, according to data released by the Veterans Benefits Administration.

“With the VA loan, it’s a guarantee. If that person defaults on their loan, the lender just calls the VA,” says Jason Wood, a mortgage adviser in San Diego who goes by “The VA Loan Guy” and hosts the podcast “Armed & Ready.” He is also an Air Force veteran. “That drives the interest rate lower, because interest rate is technically an expression of risk.”

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Topping the list is Hinesville, GA, where VA loans accounted for 53.7% of all new mortgages since January 2005, according to the Realtor.com analysis. That’s compared with VA loans making up just 6.2% of all mortgages nationally.

Tightly integrated with the nearby Army post of Fort Stewart, Hinesville has a population of roughly 35,000.

Local real estate agent Elaine C. Boggs, a military spouse who has helped buyers and sellers in Hinesville for 34 years, says roughly 95% of her clients are current or former military.

“It’s a very tight relationship between the civilian population and Fort Stewart,” says Boggs. “It’s a pleasant community. It’s easy to get around. … It’s a small-town feel, but very active and growing.”

Boggs says that her clients include veterans who decided to retire to Hinesville after leaving active duty as well as many active service members who opt to buy while assigned to Fort Stewart.

“If they don’t want to sell it in a few years, they can certainly lease it out,” she says. “There’s always a high demand for rentals as well.”

Hinesville is also one of the top 10 metros where financially-savvy Gen Zers are buying up the highest percentage of homes.

To come up with our findings, Realtor.com analyzed mortgage data from deed records dating to 2005. Then we pinpointed the 10 metropolitan areas with the highest percentage of VA mortgages.

Which metros have the highest percentage of VA buyers?

1. Hinesville, GA

VA loan share: 53.7%
Median home list price in March: $282,000
Nearby military installation: Fort Stewart

2. Jacksonville, NC

VA loan share: 52.9%
Median home list price: $330,000
Nearby military installation: Camp Lejeune

3. Clarksville, TN

VA loan share: 48.3%
Median home list price: $325,000
Nearby military installation: Fort Campbell

4. Mountain Home, ID

VA loan share: 47.5%
Median home list price: $397,495
Nearby military installation: Mountain Home Air Force Base

5. St. Marys, GA

VA loan share: 46.7%
Median home list price: $376,900
Nearby military installation: Naval Submarine Base Kings Bay

6. Fayetteville, NC

VA loan share: 46.1%
Median home list price: $324,975
Nearby military installation: Fort Liberty

7. Sumter, SC

VA loan share: 41.2%
Median home list price: $287,000
Nearby military installation: Shaw Air Force Base

8. Enterprise, AL

VA loan share: 39.1%
Median home list price: $259,900
Nearby military installation: Fort Novosel

9. Alamogordo, NM

VA loan share: 36.8%
Median home list price: $329,720
Nearby military installation: Holloman Air Force Base

10. Clovis, NM

VA loan share: 34.6%
Median home list price: $245,000
Nearby military installation: Cannon Air Force Base

The post Homes for Those Who Serve: Top 10 Markets for VA Homebuyers appeared first on Real Estate News & Insights | realtor.com®.