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% |
Related Posts
-
September Housing Market Update: Mortgage Rate Drops Ignite Housing Market ActivityLower mortgage rates sparked increased buyer and seller activity, while regional trends and natural disasters shaped local market dynamics.
-
What VA Buyers Need to Know About the NAR Commission SettlementChanges in how real estate agents work with buyers and get paid are creating new challenges and opportunities for Veterans using their home loan benefit.