VA loans had their biggest year ever in Fiscal Year 2021, thanks to interest rates near modern-day lows and a wave of younger homebuyers. Check out the biggest markets for this historic benefit program.
VA loans just had their biggest year ever.
This historic benefit program guaranteed a record 1.4 million loans in Fiscal Year 2021, a nearly 17% jump from last year's former record haul, according to data from the Department of Veterans Affairs. VA purchase loans experienced their 10th year-over-year increase in a row, with younger Veterans and service members leading the way.
More than half of all VA purchase loans in FY21 went to Millennial and Generation Z Veterans.
But the story again this year was refinance. Riding a prolonged way of low rates, the program backed more than 876,000 refinance loans, up an incredible 22% from last fiscal year.
The 50 largest VA loan markets accounted for 54% of all VA loans in FY21.
Key Takeaways for Top 50 Cities
- The Top 10 cities were mostly unchanged from last year. Virginia Beach jumped ahead of Phoenix to take the No. 2 spot, San Antonio switched places with Dallas for No. 7, and Seattle jumped over Colorado Springs at No. 9.
- Fifteen markets saw VA lending increase 20% or more in FY21, with two cities (Fayetteville, N.C., and Albuquerque) experiencing a 30% increase.
- The Top 5 markets that experienced the largest year-over-year growth in VA loans were: Fayetteville, N.C., Albuquerque, Philadelphia-Camden-Wilmington, August-Richmond County, Ga., and Killeen-Temple-Fort Hood, Texas.
- The Top 5 cities accounted for more VA loans than the program backed in any year prior to FY20.
Top 50 Cities For VA Loans in FY21
| MSA | FY 2020 Loans | FY 2021 Loans | % Difference |
|---|---|---|---|
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 49,761 | 61,411 | 23.4% |
| Virginia Beach-Norfolk-Newport News, VA-NC | 32,132 | 40,175 | 25% |
| Phoenix-Mesa-Scottsdale, AZ | 35,608 | 36,992 | 3.89% |
| San Diego-Carlsbad-San Marcos, CA | 29,773 | 32,139 | 7.95% |
| Riverside-San Bernardino-Ontario, CA | 27,930 | 30,013 | 7.46% |
| Atlanta-Sandy Springs-Marietta, GA | 27,029 | 29,379 | 8.69% |
| San Antonio, TX | 23,118 | 27,810 | 20.3% |
| Dallas-Fort Worth-Arlington, TX | 24,934 | 26,237 | 5.23% |
| Seattle-Tacoma-Bellevue, WA | 21,464 | 23,388 | 8.96% |
| Colorado Springs, CO | 21,700 | 22,940 | 5.71% |
| Tampa-St. Petersburg-Clearwater, FL | 19,496 | 21,477 | 10.2% |
| Las Vegas-Paradise, NV | 19,814 | 20,867 | 5.31% |
| Los Angeles-Long Beach-Santa Ana, CA | 18,321 | 20,247 | 10.5% |
| Houston-Sugar Land-Baytown, TX | 16,690 | 20,231 | 21.2% |
| Baltimore-Towson, MD | 15,241 | 18,724 | 22.8% |
| Denver-Aurora, CO | 18,454 | 18,640 | 1.01% |
| Jacksonville, FL | 15,064 | 17,566 | 16.6% |
| Chicago-Naperville-Joliet, IL-IN-WI | 14,913 | 16,909 | 13.4% |
| Sacramento-Arden-Arcade-Roseville, CA | 12,360 | 12,763 | 3.26% |
| St. Louis, MO-IL | 10,336 | 12,639 | 22.3% |
| Orlando-Kissimmee, FL | 11,313 | 12,456 | 10.1% |
| Portland-Vancouver-Beaverton, OR-WA | 11,577 | 12,175 | 5.17% |
| Minneapolis-St. Paul-Bloomington, MN-WI | 10,759 | 11,885 | 10.5% |
| Fayetteville, NC | 8,566 | 11,203 | 30.8% |
| Honolulu, HI | 9,318 | 11,152 | 19.7% |
| Tucson, AZ | 9,385 | 10,407 | 10.9% |
| Killeen-Temple-Fort Hood, TX | 8,209 | 10,292 | 25.4% |
| Miami-Fort Lauderdale-Pompano Beach, FL | 9,545 | 10,286 | 7.76% |
| Charlotte-Gastonia-Concord, NC-SC | 9,310 | 9,985 | 7.25% |
| Kansas City, MO-KS | 8,705 | 9,949 | 14.3% |
| Richmond, VA | 8,118 | 9,605 | 18.3% |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 7,631 | 9,593 | 25.7% |
| Detroit-Warren-Livonia, MI | 8,429 | 9,293 | 10.3% |
| Nashville-Davidson-Murfreesboro-Franklin, TN | 8,483 | 8,951 | 5.52% |
| Pensacola-Ferry Pass-Brent, FL | 7,544 | 8,900 | 17.9% |
| Oklahoma City, OK | 7,040 | 8,647 | 22.8% |
| Indianapolis-Carmel, IN | 7,864 | 8,542 | 8.62% |
| Clarksville, TN-KY | 6,993 | 8,534 | 22% |
| Austin-Round Rock, TX | 8,003 | 8,512 | 6.36% |
| Charleston-North Charleston, SC | 7,462 | 8,406 | 12.6% |
| Raleigh-Cary, NC MSA | 7,401 | 8,207 | 10.8% |
| Columbia, SC | 6,607 | 8,114 | 22.8% |
| Augusta-Richmond County, GA-SC | 6,294 | 7,900 | 25.5% |
| Jacksonville, NC MSA | 6,303 | 7,670 | 21.6% |
| Fort Walton Beach-Crestview-Destin, FL MSA | 5,938 | 7,075 | 19.1% |
| Cincinnati-Middletown, OH-KY-IN | 6,120 | 6,937 | 13.3% |
| Albuquerque, NM | 5,183 | 6,749 | 30.2% |
| Columbus, OH | 6,053 | 6,594 | 8.94% |
| Palm Bay-Melbourne-Titusville, FL | 5,653 | 6,434 | 13.8% |
| Boise City-Nampa, ID | 5,872 | 6,391 | 8.84% |
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