Last updated: September 2025
Quick Answer
The best states to use your VA loan in 2025 combine high BAH rates, affordable housing, and veteran-friendly tax policies. Top picks include Texas, Florida, Pennsylvania, South Carolina, and West Virginia—where your benefits stretch further and military families thrive.
What makes a state VA loan–friendly in 2025?
Some states stretch your VA loan benefit further than others—thanks to stronger BAH, better tax perks, or lower home prices.
If you’re PCS’ing, retiring from the military, or looking to invest using VA eligibility, you’ll want to look at how each state ranks in three key areas:
- Basic Allowance for Housing (BAH): The higher the local BAH, the more income lenders can count toward loan approval
- Median home prices: Low-cost housing markets help you afford more home with no down payment
- Veteran-friendly tax policies: Property tax exemptions and no income tax can lower monthly costs and long-term ownership expenses
Let’s break down the top-performing states across these categories to help you decide where to buy in 2025.
1. Texas – Best for no loan limits and veteran tax exemptions
Texas remains a top choice for military homebuyers thanks to:
- No state income tax
- High BAH zones around Fort Cavazos, Lackland AFB, and Fort Bliss
- Affordable home prices in suburban and rural areas
- Generous property tax exemptions for disabled veterans
Median home price (statewide average): $310,000
Top BAH (E-5 with dependents): $2,700+ in San Antonio metro
Bonus: Texas offers a full property tax exemption for veterans with a 100% VA disability rating, as well as additional tiered reductions for those with lower ratings.
VA loan buyers in Texas also benefit from no loan limits with full entitlement, and the ability to purchase jumbo VA homes without a down payment.
2. Florida – Best for no income tax and coastal PCS locations
Florida attracts VA loan buyers with 21 military installations, mild winters, and veteran-friendly tax perks.
Pros include:
- No state income tax
- Popular PCS locations: NAS Pensacola, MacDill AFB, Eglin AFB
- Homestead exemption plus extra discounts for disabled veterans
- High BAH in coastal metro areas
Median home price: $365,000
Top BAH: $2,500+ in Tampa, Jacksonville, and Destin
Caution: Florida does come with higher insurance costs, especially for homes near flood zones or with older roofs. Even with higher insurance, many VA buyers find Florida’s no-income-tax policy helps keep overall costs in check.
3. Pennsylvania – Best mix of affordability and stability
With its affordable housing, solid schools, and moderate climate, Pennsylvania is an ideal destination for VA buyers seeking value and longevity.
Advantages:
- No tax on military retirement income
- Wide range of home prices from rural to urban markets
- Low property taxes in many counties
- Easy access to VA medical centers
Median home price: $255,000
Typical BAH: $2,100 in the Philadelphia area, $1,800 in Central PA
Pennsylvania is particularly attractive to retiring veterans and families looking to stretch their BAH while enjoying strong community support for service members.
4. South Carolina – Best for military-friendly culture and affordability
With bases like Joint Base Charleston, Fort Jackson, and MCAS Beaufort, South Carolina is packed with VA loan opportunities.
Perks include:
- Affordable home prices
- State tax exemptions for military retirement income
- Strong veteran job placement programs
- Homestead exemption for disabled veterans
Median home price: $280,000
BAH: $2,000–$2,400 depending on base
South Carolina also allows veterans with a 100% disability rating to receive a full property tax exemption on their primary residence.
5. West Virginia – Best for low home prices and minimal competition
Looking for a slower pace of life and serious affordability? West Virginia stands out for its seriously low home prices and closing costs, making it easier to buy with zero down and minimal cash upfront.
Why it’s ideal:
- Median home price: $170,000
- Property tax rates are among the lowest in the nation
- Low competition means buyers can negotiate closing costs
- No tax on active-duty military pay
BAH is lower, $1,300 to $1,600 in most areas, but home prices match, so purchasing with no down payment remains easy and sustainable.
Let’s Build Your Path to Homeownership
At Salute Mortgage, we combine veteran-led guidance with clear, tactical support—whether you're buying your first home, refinancing, or planning for long-term equity.
State-by-state comparison table
Here’s a quick snapshot of how these five states stack up for VA loan buyers:
| State | Median Price | Top BAH (E-5 w/ Dependents) | Income Tax | Property Tax Benefits |
|---|---|---|---|---|
| Texas | $310,000 | $2,700+ | No | Full exemption for 100% disabled veterans |
| Florida | $365,000 | $2,500+ | No | Full exemption for 100% disabled veterans |
| Pennsylvania | $255,000 | $2,100 | No (retirement) | Low tax zones in many counties |
| South Carolina | $280,000 | $2,400 | No (retirement) | Full exemption for 100% disabled veterans |
| West Virginia | $170,000 | $1,600 | No (active duty) | Minimal property tax across the board |
Tips for choosing your PCS destination
If you’re PCS’ing in 2025, consider these factors before picking a new home base:
- Match BAH to local housing: Choose areas where BAH covers most or all of your mortgage payment
- Check state-level benefits: Some states offer thousands in savings via tax exemptions and VA-friendly policies
- Factor in insurance: High insurance states (like Florida) may reduce your buying power, even with a strong BAH
- Consider long-term plans: If you’re retiring soon, states without a military retirement tax are more financially sustainable
FAQ: Best states to use a VA loan
Texas and Florida are top choices due to no income tax, high BAH, and strong veteran benefits—but your “best” state depends on your lifestyle, job opportunities, and cost-of-living preferences.
West Virginia and Pennsylvania offer the most affordable housing relative to BAH. You can often buy a home with no down payment and keep your monthly costs low.
Texas, Florida, and South Carolina offer full exemptions for veterans with a 100% permanent and total disability rating.
If you have full entitlement, there are no VA loan limits. If you have partial entitlement, the conforming loan limits in your county or state apply.
Yes—VA loans can be used to buy multi-unit properties (up to four units) if you live in one. High-rent, low-cost states, such as Pennsylvania or South Carolina, offer strong rental yield potential.
Use your VA loan where it matters most
In 2025, using your VA loan strategically means looking beyond just the home price. Where you buy can affect your taxes, monthly payment, and long-term value.
Whether you're relocating, investing, or settling down after service, states like Texas, Florida, and Pennsylvania offer a powerful combination of benefits and affordability.
