A new analysis from Veterans United Home Loans estimates that approximately 83,100 VA loans, representing $41 billion in potential mortgage volume, went untapped across U.S. metropolitan areas in 2025.
The findings point to a gap between the number of veterans living in certain housing markets and the share of mortgage originations using VA financing. They also suggest that opportunities to expand VA lending extend well beyond the expensive coastal markets often associated with affordability challenges.
Tthe findings identify markets where greater familiarity with VA financing among originators, real estate agents, and borrowers could help expand production.
VA Lending Grows, But Gaps Remain
According to Home Mortgage Disclosure Act data cited by Veterans United, VA loans accounted for 10.04% of the mortgage market in 2025, compared with 9.80% in 2024 and 8.32% in 2023.
Much of that growth came from refinancing. VA loans represented 9.22% of home purchase originations in 2025, up from 8.88% the previous year.
Although VA financing continues to capture a larger share of the overall mortgage market, the program's more modest gains in purchase lending leave room for additional growth.
Veterans United developed its VA Loan Opportunity Index by comparing the veteran population share in individual metropolitan areas with local VA loan utilization. The company then applied a national benchmark to estimate how many additional VA purchase and refinance loans could have been originated in markets where utilization fell below expectations.
The Opportunity Extends Well Beyond Coastal Markets
New York had the largest estimated number of untapped VA loans, at 3,597, followed by Philadelphia with 2,678 and Chicago with 2,410.
Los Angeles ranked fourth with 2,305, followed by Boston with 2,186.
But the geographic distribution tells a broader story.
Detroit ranked sixth with an estimated 2,150 untapped VA loans, followed by Pittsburgh at 1,897 and Minneapolis-St. Paul at 1,738. Cleveland also made the top 10, with an estimated 1,587 loans.
Other Midwest markets, including St. Louis, Cincinnati, Columbus, and Milwaukee, appeared among the top 25.
The findings suggest that VA lending potential is not limited to markets with a prominent military presence or unusually high home prices.
“The core benefits of VA loans give so many Veteran buyers a meaningful advantage in any housing market, which is part of makes these gaps in usage stand out. They aren’t confined to the coasts and only the nation’s costliest markets. The breadth and scope of VA loan underutilization suggests barriers like practical awareness and confidence are playing a big role, among both Veterans and real estate agents and sellers on the other side of the table,” said Chris Birk, vice president of mortgage insight at Veterans United.
Top 10 Metros for Estimated Untapped VA Loans
Estimated additional VA loans in 2025
Minneapolis-St. Paul1,738
Source: Veterans United Home Loans, VA Loan Opportunity Index. Figures are modeled estimates, not verified lost originations.
The geographic gaps provide lenders and brokers with a starting point for evaluating whether their VA production reflects the potential demand in the communities they serve.
The findings suggest that some opportunities may already exist within established markets, among borrowers whose financing options deserve a closer look.
