CHULA VISTA, Calif. (KGTV) — Hundreds of thousands of veterans and active duty military call San Diego County home, but a group says they are facing big disadvantages when trying to buy a house here.

The San Diego Veterans Association of Real Estate Professionals says more than 60 percent of listings in the county won’t accept offers with V.A. loans.

The federally backed loans don’t require a down payment or mortgage insurance. Those eligible in San Diego County can borrow up to about $650,000 without any cash down.

“We have served, and the V.A. loan is a guaranteed loan,” said Andre Hobbs, a San Diego realtor and veteran who heads the association.

Hobbs says the benefit is backfiring for some home seekers in San Diego’s ultra-competitive housing market. It’s because he says sellers are opting for offers instead that include cash down payment because of a misperception about V.A. applicants.

“They assume that this buyer is ready to walk,” Hobbs said. “He’s not motivated.”

Mark Goldman, a real-estate lecturer at San Diego State University, said there are some misconceptions about V.A. loans, such as that they are more complex. He added there are a few extra disclosures, but they aren’t cumbersome.

But V.A. buyers can also have an advantage if the current owner also served in the military.

“Luckily we may meet another veteran seller that understands, ‘hey, I’m willing to do that,'” Hobbs said.

Read More At ABC Channel 10 News