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. According to data from the VA, Phoenix ranked No. 2 nationally with 16,567 VA loans, an uptick of 64 percent compared to just five years ago.
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.
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.