The VA loan program rebounded sharply in Fiscal Year 2025, reversing last year’s slowdown and underscoring the resilience of one of the nation’s most powerful homebuying benefits.
A new analysis from Veterans United Home Loans, the country’s largest VA lender, showed that the VA loan program rebounded nicely in Fiscal Year 2025 by sharply reversing last year’s slowdown.
The analysis showed total VA lending rose 26.8% year-over-year, climbing to 528,343 loans from 416,363 in Fiscal 2024.
Veterans United said that much of the momentum came from a steadier purchase market and a major surge in refinancing. That signaled renewed confidence among veterans and service members navigating a challenging affordability landscape, Veterans United said.
The company said that Generation Z, the largest cohort of military buyers, played an large role in the VA program’s resurgence during the fiscal year ending Sept. 30.
Gen Z was the only age group to post year-over-year purchase gains in Fiscal 2024. They accounted for 38% of VA loan activity in Fiscal 2025. Gen Z Veterans also led all other generations in purchase growth, outpacing older military borrowers by a wide margin.
VA Purchase Loans Rose 8.5% Year Over Year
“Gen Z is expanding its footprint faster than any other group of VA buyers,” said Chris Birk, VP of Mortgage Insight at Veterans United Home Loans. “They’re entering the market at a time when affordability is a real challenge, and the VA loan’s hard-earned benefits are helping them compete and succeed. Their growth is reshaping what the next decade of military homebuying will look like.”
VA purchase loans rose 8.5% year over year overall, to 323,835 from 298,327. That total marked a strong turnaround from Fiscal 2024, when purchase volume fell more than 5% from Fiscal 2023.
Veterans United said that as younger buyers continue to gain traction, the VA loan’s hallmark features, especially its zero-down payment advantage, remain an integral tool for first-time and affordability-constrained borrowers.
VA Purchase Loans by Generation
| Generation | FY25 | FY24 | % Difference |
| Gen Z | 47,802 | 34,616 | 38 % |
| Baby Boomers | 46,285 | 43,272 | 6.96 % |
| Millennial | 152,513 | 144,678 | 5.42 % |
| Silent & Greatest | 5,133 | 4,993 | 2.8 % |
| Gen X | 72,102 | 70,768 | 1.89 % |
Activity remains below historic highs from the pandemic era, but refinancing again became a significant part of the VA lending landscape as borrowers sought opportunities to improve their rate or tap equity, Veterans United said. Total VA refinances rose 73.2% year-over-year with cash-out refinances accounting for slightly over a quarter (26.5%) of refi activity.
Veterans United said that the fastest-growing destinations for Gen Z VA buyers included major metros and traditional military hubs across Texas, the Carolinas, and in California. Those markets posted growth substantially above the national average for this age group, highlighting where the youngest Veterans and service members are choosing to put down roots.
