More than 624,000 military service members and veterans used home loans from the Department of Veterans Affairs this year, with younger buyers accounting for the majority of these borrowers, according to research from Veterans United Home Loans. VA loans were up 43% in 2019 compared to five years ago.
Millennial and Generation Z buyers comprised nearly half—45%—of all VA home purchases this year. Further, VA refinance loans rose 44% in 2019 compared to five years ago. Overall, the VA has backed more than 8 million loans over the last 20 years. Nearly 70% of those loans were originated in the past decade alone, according to Veterans United Home Loans.
The Blue Water Navy Veterans Act of 2019 recently removed loan caps for 2020. That means borrowers taking out a VA-backed mortgage in 2020 could be eligible to buy larger homes in pricier communities—still without a down payment.
Veterans United Home Loans ranked cities by overall VA loans in 2019; the metro areas with the highest number of VA loans were:
1. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
- Number of loans: 20,141
- Percent change from fiscal year 2014: 22.9%
2. Phoenix-Mesa-Scottsdale, Ariz.
- Number of loans: 16,567
- Percent change from fiscal year 2014: 64%
3. Virginia Beach-Norfolk-Newport News, Va.-N.C.
- Number of loans: 14,821
- Percent change from fiscal year 2014: 27.4%
4. Atlanta-Sandy Springs-Marietta, Ga.
- Number of loans: 13,998
- % change from fiscal year 2014: 75.2%
5. Riverside-San Bernardino-Ontario, Calif.
- Number of loans: 12,812
- Percent change from fiscal year 2014: 44.5%
6. San Diego-Carlsbad-San Marcos, Calif.
- Number of loans: 11,842
- Percent change from fiscal year 2014: 35.2%
7. Dallas-Fort Worth-Arlington, Texas
- Number of loans: 11,383
- Percent change from fiscal year 2014: 21%
8. Colorado Springs, Colo.
- Number of loans: 10,520
- Percent change from fiscal year 2014: 55.8%
9. Tampa-St. Petersburg-Clearwater, Fla.
- Number of loans: 10,502
- Percent change from fiscal year 2014: 88.1%
10. San Antonio
- Number of loans: 10,469
- Percent change from fiscal year 2014: 19.8%
Source: “Top 30 Cities for VA Loan Usage in FY 2019,” Veterans United Home Loans (Nov. 1, 2019)
