Despite ongoing affordability hurdles and economic uncertainty, consumers nationwide are still aspiring to attain the American Dream while attempting to navigate today’s unpredictable housing trends, prices, and more. According to a recent Veterans United Home Loans survey, parents are increasingly influencing the next
generation’s path to homeownership.
With approximately six out of 10 parents (59%) having provided or wishing to assist their children with financial help so they can purchase a property, Chris Birk, VP of Mortgage Insight at Veterans United Home Loans, shared insights on the subject with MortgagePoint in this exclusive discussion.
Birk is author of The Book on VA Loans: An Essential Guide to Maximizing Your Home Loan Benefits. His analysis and articles have appeared in the New York Times, the Washington Post, the Wall Street Journal, on FOX Business, and more.
Families are Stepping Up to Help
The survey revealed that families are increasingly stepping in to help overcome financial difficulties in today’s housing market. Roughly 68% of veterans and service members say they have helped or wish to help, compared to 49% of civilians. Also, according to the study, many parents consider financial support to be both kind and crucial when it comes to housing.
“Today’s affordability challenges are making it harder for many younger buyers to gain a foothold in the housing market,” Birk said. “For some families, that means stepping in where they can to help bridge gaps around upfront costs or qualification hurdles, even if it means stretching their own finances or making sacrifices elsewhere.”
According to 43% of respondents, the most frequent reason parents intervene is to assist with a down payment.
An estimated 33% mentioned paying closing expenses, and another 37% stated they wanted to assist their child
in getting a mortgage. The findings also highlighted two of the most significant obstacles to becoming a homeowner: fulfilling loan requirements and saving enough money up front.
However, many parents are also considering the long term. While some 27% want to lower monthly payments, a
third (33%) indicated they want to assist their child in developing equity and long-term wealth.
Q: According to a recent survey conducted by Veterans United Home Loans, most parents have given or intend to provide some type of financial aid to help their children purchase a home. How significantly do you think this will benefit the newer generation of homebuyers?
This could be a significant benefit for the newer generation of homebuyers, especially in a market where affordability remains one of the biggest barriers.
Help from parents can give younger buyers a faster path to homeownership by easing upfront costs like a down payment and closing expenses. That support can help them enter the market sooner, start building equity earlier, and begin creating long-term financial stability.
The key is making sure that assistance helps buyers purchase responsibly, rather than stretching into a home
or a monthly payment they can’t comfortably sustain.
Q: What are the biggest issues facing veterans seeking a VA mortgage?
Veterans and service members face many of the same headwinds as all would-be buyers. But the VA home loan
benefit offers major advantages that can help buyers get into homes sooner and more easily than their civilian counterparts. One of the big issues facing veterans is that there are a lot of misconceptions and misunderstandings out there about how VA loans work and what they offer. For example, some veterans believe they need perfect credit or a large down payment to get a VA loan. The reality is this program was designed to be more flexible, requiring no down payment and offering competitive interest rates.
Others think the benefit can only be used once, when it can actually be used over and over again.
Another challenge is that some sellers and even real estate agents are unfamiliar with VA loans, which can lead to hesitation in competitive markets. There’s a lingering myth that VA loans are harder to close or come with excessive requirements, neither of which is true.
When you shift the focus to the benefits, VA loans are one of the most powerful homebuying tools available. They offer no down payment, no private mortgage insurance, competitive rates, and built-in consumer protections that help veterans avoid risky lending. Once people understand how accessible and valuable VA loans are, many of those perceived barriers disappear.
Q: What is the most important thing for veterans to consider before applying for a VA loan?
The most important thing for veterans to consider before applying for a VA loan is understanding their full financial picture, not just whether they qualify.
That starts with getting a clear picture of your finances, including your credit, your income, and your major monthly debts. Not because you need to be perfect, but because you need to know where you stand and what’s possible.
Mortgage calculators and affordability tools can help you get an early sense of a potential homebuying budget.
The VA loan program is incredibly powerful. It offers things like no down payment and flexible credit guidelines, which can open doors that a lot of people don’t realize are available. But it’s not one-size-fits-all, and the best outcomes come when veterans take that first step to understand their options early.
Getting preapproved is a key first step. It helps you shop with confidence, move quickly when you find the right home, and avoid surprises along the way.
Lastly, don’t try to figure it all out on your own. Work with a lender who really knows VA loans and takes the time to answer all your questions.
Q: Are younger, first-time buyers making any headway towards homeownership?
Affordability is a real challenge right now, but younger and first-time buyers are finding ways to break into homeownership, often without financial help from their parents. The key difference is that they’re often taking the time to understand the homebuying process and using specialized loan programs and assistance options.
For eligible service members and veterans, the VA loan is a major driver here. In fact, usage has been growing fastest among Gen Z buyers, which shows that younger borrowers are increasingly tapping into this benefit early. The reason is simple: VA loans remove some of the biggest barriers, like large down payments and a need for great credit, making homeownership much more attainable.
Beyond VA loans, other low-down payment options are also helping first-time buyers gain traction, including FHA and USDA loans. Many state and local programs also offer down payment assistance, grants, or forgivable loans that can significantly reduce upfront costs.
The bigger issue isn’t that solutions don’t exist; it’s that many buyers assume they need 10%–20% down or that all mortgage products work the same way. That misconception can sideline a lot of otherwise qualified buyers.
