VA purchase loans increase for eighth-straight year, overall usage up 43 percent compared to five years ago
December 3, 2019
COLUMBIA, Mo. – VA loans to purchase homes increased for an eighth-straight year in Fiscal Year 2019, with the government backing more than 624,000 loans, a 43 percent increase compared to five years ago, according to data from the Department of Veterans Affairs.
Veterans and service members made their presence felt in cities and metro areas nationwide using their hard-earned home loan benefit. Washington, D.C., was the top market for VA loan usage, followed by Phoenix, Virginia Beach, Atlanta and Riverside, California.
Generation Z and Millennial buyers accounted for 45 percent of all VA purchase loans in FY19.
“Younger Veterans and service members are fueling the continued growth of this historic loan program,” said Chris Birk, Director of Education for Veterans United Home Loans. “This benefit was built to help boost access to homeownership for those who serve, and it’s helping a new generation of Veterans and military families put down roots in communities across the country.”
VA loans allow qualified Veterans and service members to purchase with some big-time benefits, including $0 down payment, no mortgage insurance, more flexible credit guidelines and the industry's lowest average interest rates.
To recognize growth in usage this year, Veterans United compiled a list of the Top 30 Cities for VA Loan Usage in FY 2019.
Top 10 Cities for VA Loan Usage in FY 2019
- Washington-Arlington-Alexandria, DC-VA-MD-WV MSA
- Phoenix-Mesa-Scottsdale, AZ MSA
- Virginia Beach-Norfolk-Newport News, VA-NC MSA
- Atlanta-Sandy Springs-Marietta, GA MSA
- Riverside-San Bernardino-Ontario CA MSA
- San Diego-Carlsbad-San Marcos, CA MSA
- Dallas-Fort Worth-Arlington, TX MSA
- Colorado Springs, CO MSA
- Tampa-St. Petersburg-Clearwater, FL
- San Antonio, TX MSA
Changes to VA loan limits that take effect on Jan. 1, 2020, will likely increase lending in many of these markets. In a huge win for Veterans, these limits will be removed for qualified buyers, eliminating a down payment requirement in some of the costliest cities in the country.
Veterans United Facts
- $34 billion
in loans financed in 2022 - Defense Employer Support Freedom Award Recipient
by the Secretary of Defense - More than 4,300 employees
in more than 36 states
- More than $130 million
raised for nonprofit charitable arm, Veterans United Foundation since Nov. 2011 - No. 8 Best Place to Work
according to Glassdoor Best Places to Work in 2022
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Chris BirkChris is the nation’s leading expert on VA Loan benefits. He authored The Book on VA Loans in 2011, and maintains the VA Loans Insider blog. His analysis and articles have appeared at a host of sites and publications, including the Washington Post, The New York Times, the Wall Street Journal, ABC News, USA Today, the Houston Chronicle and more. Members of the media may request a free copy of The Book on VA Loans to learn more about the VA loan program.
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