New Veterans United analysis shows VA lending up 45% so far in 2025, with Gen Z driving biggest gains in purchase and refinance activity
A new analysis from Veterans United Home Loans, the nation's largest VA lender, released today shows that Generation Z Veterans are increasingly using VA loans to buy and refinance homes. In doing so, they're overcoming the financial hurdles that keep many of their peers on the sidelines, and helping fuel a major rebound for the program.
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The analysis, based on Department of Veterans Affairs lending data from the first half of fiscal year 2025, found that total VA loan volume is up 45% compared to the same period in 2024. VA purchase loans are up nearly 10%, while refinance activity surged nearly 150%.
Gen Z Veterans and service members led all age demographics in half-year over half-year growth, including an eye-popping 459% increase in VA refinance loans. The huge jump in refinance loans likely reflects a wave of first-time homeowners capitalizing on an improved rate environment compared to just a year or two ago.
The youngest generation of homebuyers now claims a record-high 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,” said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. “Young Veterans are stepping into the market with confidence, and this program is helping them overcome hurdles that might otherwise sideline their homebuying journey.”
The flexibility and buying power of the VA loan make it a particularly strong match for younger borrowers. With no down payment, no mortgage insurance and more lenient credit guidelines, the program offers a unique foundation for first-time buyers eager to put down roots.
Overall, Millennials still dominate VA lending, accounting for nearly half (48%) of all VA purchase loans and more than 1-in-3 (35%) of all VA loans since FY19, according to VA data.
But Gen Z buyers are starting to make an impact on housing markets nationwide. Last year, when overall VA purchase lending was down 7% compared to 2023, Gen Z was the only age demographic to see an increase.
Gen Z buyers are most concentrated near large military communities like San Antonio, Virginia Beach, Va., and Colorado Springs, Colo., where many are purchasing their first homes soon after separation or while still serving.
To view the full report, visit: https://www.veteransunited.com/education/gen-z-buyers-help-va-loans/
About Veterans United Home Loans
Based in Columbia, Missouri, the full-service national direct lender financed more than $22.7 billion in loans in Fiscal Year 2024 and is the country's largest VA lender, according to theDepartment of Veterans Affairs Lender Statistics. The company's mission is to help Veterans and service members take advantage of the home loan benefits earned by their service.
VeteransUnited.com| 1-800-884-5560 | 550 Veterans United Drive, Columbia, MO 65201 | Veterans United Home Loans NMLS # 1907 (www.nmlsconsumeraccess.org). A VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Licensed in all 50 states. For State Licensing information, please visit https://www.veteransunited.com/licenses/. Equal Opportunity Lender.
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SOURCE Veterans United Home Loans
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