Veterans United Analysis Reveals $28 Billion in Untapped VA Loan Volume
October 9, 2025
COLUMBIA, Mo.- Housing markets across the country are missing out on tens of thousands of VA loans, leaving billions of dollars in potential loan volume untapped each year, according to a new analysis released today by Veterans United Home Loans, the nation's largest VA lender. The nationwide analysis found that more than 58,000 VA loans went unused in 2024, representing nearly $28 billion in missed loan volume.
This shortfall reflects the gap between how often Veterans use the benefit nationally and how often they use it in specific housing markets. Despite the VA loan's growing popularity since the Great Recession, the analysis found usage remains uneven and disproportionately low in many metros compared to the size of their Veteran populations.
To determine the potential loan volume that is going untapped throughout the U.S., Veterans United compared VA loan utilization to the national average, adjusting for the size of the Veteran population. The number of "missed" VA loans was multiplied by each metro's median listing price to estimate the potential volume left untapped.
Based on this analysis, Barnstable Town, Mass., San Jose, Calif., and Naples, Fla. top the list of underutilized metros. Although separated by thousands of miles, these markets share commonalities, including high home prices, elevated median incomes and smaller Veteran populations, which together create affordability challenges and reduce awareness and acceptance of the VA loan program.
Nearly all of these metros report median incomes above the national metro median of $65,044, but their home listing prices far exceed the national metro median of $342,000. That combination, especially in high-cost states, makes it even more difficult for Veterans to compete with conventional buyers.
"Even in some of the country's most competitive and expensive housing markets, thousands of Veterans might be missing out on the advantages of this benefit," said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. "Our study underscores the need for greater awareness of the benefits of the VA loan. A stronger focus on education and access could make a meaningful difference for Veterans and their families."
Some markets stand out more than others. Metros like New York, Los Angeles and Boston each exceeded $1 billion in estimated lost VA loan volume. These are pricier markets where affordability is already a challenge and where the VA loan could have had a particularly meaningful impact.
Lower-cost markets also appeared on the list of underutilized metros. Places such as Glens Falls, N.Y., Lancaster, Pa. and Waterloo, Iowa, ranked among the top 25 despite more affordable home prices. In these areas, the likely drivers of underutilization are smaller Veteran populations and lower overall loan volumes, which can reduce familiarity with the VA loan program among both buyers and real estate professionals.
Nationally, VA loans have accounted for about 10-12% of the mortgage market in recent years. That figure fell to about 8% in 2024, according to HMDA data, driven in large part by the tough mortgage rate and affordability environment.
The study also found misconceptions about VA loans also play a role in the underutilization. In competitive markets where sellers can demand quick, conventional offers, Veterans may feel pressure to avoid using their benefit, despite the VA loan's advantages. Common myths include that conventional loans provide more favorable terms and close faster when in reality VA loans don't require a down payment and have no PMI. Also, sellers can pay all buyer closing costs plus up to 4% in concessions and they close on normal timelines when VA-specific steps are handled early.
Top 25 metros with the largest gaps between Veterans and VA loan use
Rank | Metro | Veteran | VA Market | Median | "Untapped" |
1 | Barnstable Town, Mass | 6.35 % | 2.51 % | $94,452 | $235,099,803 |
2 | San Jose-Sunnyvale- | 2.12 % | 0.84 % | $157,444 | $476,864,635 |
3 | Naples-Marco Island, Fla | 5.35 % | 2.81 % | $86,173 | $276,585,160 |
4 | Pittsfield, Mass | 4.67 % | 2.49 % | $72,565 | $39,519,803 |
5 | San Francisco-Oakland- | 2.65 % | 1.46 % | $133,780 | $888,082,275 |
6 | Bridgeport-Stamford-Danbury, | 2.65 % | 1.47 % | $111,656 | $211,133,231 |
7 | Santa Cruz- | 2.89 % | 1.72 % | $109,266 | $50,640,158 |
8 | Glens Falls, N.Y | 6.88 % | 4.15 % | $74,953 | $30,572,266 |
9 | Napa, Calif | 5.13 % | 3.18 % | $108,970 | $70,200,184 |
10 | Santa Rosa-Petaluma, Calif | 3.89 % | 2.42 % | $102,840 | $145,719,897 |
11 | Kingston, N.Y | 3.51 % | 2.18 % | $81,804 | $29,463,901 |
12 | Lancaster, Pa | 4.78 % | 3.19 % | $83,703 | $99,328,264 |
13 | Rochester, N.Y | 4.76 % | 3.22 % | $74,438 | $125,561,880 |
14 | Elkhart-Goshen, Ind | 4.23 % | 2.88 % | $65,617 | $29,423,654 |
15 | Waterloo-Cedar Falls, Iowa | 4.85 % | 3.31 % | $68,916 | $32,571,873 |
16 | Binghamton, N.Y | 5.36 % | 3.70 % | $63,347 | $21,425,467 |
17 | Cape Coral-Fort Myers, Fla | 6.66 % | 4.61 % | $73,099 | $465,336,883 |
18 | New Haven-Milford, Conn | 3.77 % | 2.64 % | $86,266 | $85,713,230 |
19 | Wenatchee, Wash | 6.44 % | 4.56 % | $79,007 | $54,476,301 |
20 | New York-Newark- | 2.19 % | 1.56 % | $97,334 | $1,885,780,165 |
21 | Allentown-Bethlehem-Easton, | 5.01 % | 3.58 % | $82,602 | $175,408,331 |
22 | Johnstown, Pa | 6.98 % | 5.03 % | $56,292 | $8,386,025 |
23 | Ithaca, N.Y | 2.75 % | 1.99 % | $73,012 | $6,551,994 |
24 | Portland-South Portland, Maine | 6.12 % | 4.49 % | $88,602 | $255,033,656 |
25 | Boston-Cambridge- | 3.39 % | 2.58 % | $112,484 | $1,129,733,191 |
*The analysis defined underutilization by comparing the VA loan's market share to the share of Veterans in each metro area. If VA usage was lower than expected given the size of the Veteran population, then the metro was deemed "underutilized" when it comes to the benefit. Markets with proportional usage were considered "balanced," while those well above expectation were classified as "well-served."
To view the complete study and methodology, visit: https://www.veteransunited.com/education/va-loan-underutilization/
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 the Department 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.
Veterans United Facts
- $26.8 billion
in loans financed in 2025 - Defense Employer Support Freedom Award Recipient
by the Secretary of Defense - More than 5,000 employees
with 24 branches nationwide
- More than $155 million
raised for nonprofit charitable arm, Veterans United Foundation since 2011 - Ranked in Fortune 100 Best Companies to Work For
every year since 2016, with a high of 14th (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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