Based on federal HMDA reporting, VA‑guaranteed loans make up about one in ten home‑purchase mortgages in some recent years. For example, in the 2020 HMDA data release, regulators reported that VA loans accounted for 10.4% of first‑lien home‑purchase originations.
Here is where the VA loan program stands in 2026, drawn from the most recent official government sources.
VA Loan Volume: The Big Picture
According to the VA's FY2024 Annual Benefits Report, 416,376 loans were guaranteed in FY2024, totaling $155.4 billion at an average loan amount of $373,290. That figure represents a steady rebound from the post-pandemic lows of FY2022 and FY2023.
In FY2025, volume accelerated sharply. According to the VA Home Loans Lender Statistics, which publishes monthly and annual loan volume data, the VA guaranteed 528,343 loans, which is a 26.8% jump from the prior year. Purchase loans rose 8.5%, cash-out refinances climbed 26.5%, and Interest Rate Reduction Refinance Loans (IRRRLs) nearly doubled, surging 135% year over year.
On August 5, 2025, the program reached a historic milestone: the 29 millionth home loan guaranteed since the GI Bill was created in 1944. According to a VA press release, that loan helped a Navy Veteran purchase a $235,000 home in Maryland. Since 1944, the VA has backed nearly $4 trillion in home loans, and nearly four million service members and Veterans currently hold active VA-backed mortgages.
Purchase Loans vs. Refinances
In FY2024, purchase loans made up 71.6% of all VA activity (298,330 loans totaling $114.1 billion), per the VA's FY2024 Annual Benefits Report. Refinances accounted for the remaining 28.4%, split between cash-out refinances and streamline IRRRLs.
By FY2025, the balance shifted noticeably. Per the VA Home Loans Lender Statistics, purchase loans still led with 323,835 originations, but the refinance share climbed to 38.7% as rate-sensitive borrowers took advantage of modest rate relief. The 135% surge in IRRRLs signals that many Veterans who financed at higher rates in 2022 and 2023 are actively seeking better terms now.
Who Is Using VA Loans Right Now?
First-Time Homebuyers
Nearly 40% of VA purchase loans in FY2024 (118,898 loans) went to first-time homebuyers, who borrowed an average of $334,578, according to the VA's FY2024 Annual Benefits Report. Repeat buyers borrowed an average of $414,376, reflecting the wealth-building advantage Veterans gain on their first home before trading up.
By Service Era and Demographics
Per the VA FY2024 Annual Benefits Report the snapshot of borrowers in 2024 looks like this:
- Gulf War era Veterans accounted for 28.5% of all loans
- Active-duty service members made up 16%
- Surviving spouses represented 0.8%
- Women accounted for 15.5% of all VA loans
VA Loan Interest Rates vs. Conventional
VA loans consistently carry lower rates than conventional mortgages. The CFPB's HMDA data consistently shows a rate advantage for VA borrowers of between 0.25% and 0.50% compared to conventional borrowers. On a $385,000 loan, even a 0.40% rate advantage saves roughly $100 per month, which is more than $36,000 over a 30-year term from the rate differential alone.
Add in the absence of private mortgage insurance (PMI) and the financial case for using the VA benefit becomes hard to argue against. Veterans who put less than 20% down on a conventional loan typically pay PMI, which can run several hundred dollars per month depending on the loan size and insurer. The VA loan program carries no PMI requirement, at any loan amount or down payment level, per VA.gov.
The Zero Down Payment Advantage
In FY2024, 74.1% of VA purchase borrowers (220,994 loans) put $0 down at closing, per the VA's FY2024 Annual Benefits Report. The average VA down payment across all purchase borrowers was just 4.6%.
That zero-down access matters enormously in a market where saving a 20% down payment on a median-priced home can take years, even for dual-income households.
VA Loan Limits in 2026
Veterans with full entitlement (no existing VA loan on another property) face no VA-imposed loan limit, per VA.gov. They can borrow as much as a lender will approve with no down payment required.
For Veterans with partial entitlement, the conforming loan limit is relevant. According to the FHFA's 2026 conforming loan limit announcement, the baseline conforming loan limit is $832,750, up from $806,500 in 2025. In high-cost areas, the ceiling rises to $1,249,125.
The VA Funding Fee
The VA charges a funding fee to help sustain the program without cost to taxpayers. For a first-time VA purchase with no down payment, the current fee is 2.15% of the loan amount. Subsequent use with no down payment carries a 3.30% fee. IRRRLs carry a flat 0.50% fee regardless of how many times the benefit has been used, per VA.gov.
Approximately one in three eligible Veterans qualifies for a complete funding fee exemption. According to the VA's FY2024 Annual Benefits Report and the VA's Veteran Population Projection Model, roughly 6 million Veterans out of approximately 18 million nationwide receive disability compensation at a rating of 10% or higher. Those receiving VA disability compensation, Veterans eligible for compensation but drawing retirement pay instead, surviving spouses receiving Dependency and Indemnity Compensation (DIC), and active-duty Purple Heart recipients are all exempt under VA eligibility guidelines.
Starting in 2026, the VA funding fee also became tax-deductible for eligible borrowers, adding another layer of financial benefit to the program, per VA News.
VA Loan Performance: Delinquencies and Foreclosures
VA loans consistently outperform FHA loans across delinquency and foreclosure metrics. According to the MBA's Q4 2025 National Delinquency Survey, the overall mortgage delinquency rate rose to 4.26% at year-end 2025. FHA loans reached 11.52%, the highest level since the second quarter of 2021. VA loans, notably, saw their delinquency rate decrease 10 basis points year over year while conventional and FHA rates climbed.
On foreclosure prevention, the VA's own programs delivered strong results in FY2024: 158,290 borrowers saved from foreclosure, a 97.58% default resolution rate, and an estimated $3.3 billion in government cost savings, per the VA FY2024 Annual Benefits Report. Only 3,928 foreclosures were completed in FY2024, down from 9,840 the prior year.
In 2025, Congress passed the VA Home Loan Program Reform Act, signed into law on July 30, 2025, per the White House. Per Congress.gov, H.R. 1815 created a five-year Partial Claim Program allowing missed payments to be deferred as a 0% interest subordinate lien, replacing the temporary VASP program that ended in May 2025.
Where VA Loans Are Most Active
Texas and Florida consistently lead the nation in VA loan volume, per the VA Home Loans loan volume by state data. States with large active-duty and Veteran populations, including Virginia, California, Washington, North Carolina, and Georgia, also rank among the highest-volume markets in the country.
VA Loan Approval Rates
VA loans have the lowest denial rate of any major loan type. The CFPB's HMDA data consistently shows VA loans outperforming both FHA and conventional mortgages on denial rates, a pattern that has held across multiple reporting years. The program's residual income requirement, which tests actual monthly cash flow after major expenses rather than relying solely on debt-to-income ratios, is widely credited for VA loans' superior long-term performance compared to other government-backed products.
The VA does not set a minimum credit score, though most lenders require at least 620, per VA.gov.
FAQs
How many VA loans are originated each year?
In FY2025, 528,343 VA loans were guaranteed, a 26.8% increase from 416,376 in FY2024, per the VA Home Loans Lender Statistics. Since 1944, the VA has backed more than 29 million home loans totaling nearly $4 trillion, per the VA press release marking that milestone.
Are VA loan interest rates lower than conventional?
Yes. The CFPB's HMDA data consistently shows VA rates running 0.25% to 0.50% below comparable conventional mortgage rates.
What percentage of Veterans use their VA loan benefit?
Based on federal HMDA reporting, VA-guaranteed loans have made up roughly one in ten home-purchase mortgages in recent years. The CFPB's 2023 HMDA summary, for example, showed VA loans accounting for 10.6% of first-lien home-purchase originations.
Do all Veterans qualify for a VA loan with zero down payment?
Veterans with full entitlement (no active VA loan on another property) can purchase with no down payment at any loan amount, per VA.gov. Veterans with partial entitlement may need a down payment for purchases above the county conforming loan limit.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, those eligible for compensation but receiving retirement or active-duty pay instead, surviving spouses receiving Dependency and Indemnity Compensation (DIC), and active-duty Purple Heart recipients are all exempt, per VA.gov.
