VA loans are up 45% annually, and Gen Zers are leading the charge

Loan volume through the U.S. Department of Veterans Affairs (VA) is up 45% during the first half of 2025 compared to the same period in 2024. That’s according to an analysis of VA loan data released Wednesday by Veterans United Home Loans.

The analysis, based on lending data from the first half of fiscal year 2025, found that VA purchase loans are up nearly 10% while refinance activity is up nearly 150%.

The data also revealed that Gen Z veterans are increasingly using VA loans to buy and refinance homes, fueling a “major rebound” for the program.

Gen Z veterans and service members led all age demographics in the growth of borrower activity — including a 459% increase in VA refinance loans. Gen Z also claims a 12% share of the VA purchase market, triple their share from just three years ago.

For comparison, Gen Z buyers comprised only 3% of the overall mortgage market last year, according to the National Association of Realtors.

“This kind of momentum shows just how powerful the VA loan benefit continues to be,” Chris Birk, vice president of mortgage insight at Veterans United Home Loans, said in a statement. “Young Veterans are stepping into the market with confidence, and this program is helping them overcome hurdles that might otherwise sideline their homebuying journey.”

Overall, millennials still dominate VA lending, accounting for nearly half (48%) of all VA purchase loans and more than one in three (35%) of all VA loans since fiscal year 2019, according to the data.

Last year, however, when overall VA purchase lending was down 7% compared to 2023, Gen Z was the only age demographic to see an increase.

The data also revealed that Gen Z buyers are most concentrated near large military communities like San Antonio; Virginia Beach, Virginia; and Colorado Springs, Colorado.

“We’ve seen Gen Z Veterans embrace the VA loan program in record numbers,” Birk said. “They’re savvy, mission-oriented buyers who understand the value of a 0% down mortgage, especially in today’s market. This generation is on the cusp of playing a major role in shaping the housing economy of the future.”