A new analysis by Veterans United Home Loans reveals that more than 58,000 Veterans missed out on using their VA home loan benefit in 2024, representing nearly $28 billion in unclaimed loan volume across U.S. housing markets.
The nationwide report found that VA loan usage remains uneven and disproportionately low in many metro areas compared to the size of their Veteran populations — particularly in high-cost regions such as San Jose, California; Naples, Florida; and Barnstable Town, Massachusetts.
Those markets share common traits, including high home prices, elevated median incomes, and smaller Veteran populations. Altogether it creates affordability challenges and lowers awareness of the VA loan program.
Larger metros, including New York, Los Angeles, and Boston, each exceeded $1 billion in estimated lost VA loan volume, underscoring how affordability barriers in expensive housing markets may prevent Veterans from accessing their benefits.
Even lower-cost markets, such as Glens Falls, N.Y.; Lancaster, Pa.; and Waterloo, Iowa, appeared on the list of underutilized metros. According to the report, that’s likely due to smaller Veteran populations and limited familiarity with the VA loan program among both buyers and real estate professionals.
“Even in some of the country’s most competitive and expensive housing markets, thousands of Veterans might be missing out on the advantages of this benefit,” said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. “Our study underscores the need for greater awareness of the benefits of the VA loan. A stronger focus on education and access could make a meaningful difference for Veterans and their families.”
Nationwide, VA loans accounted for just 8% of the mortgage market in 2024, down from 10–12% in previous years, according to HMDA data. Veterans United attributes much of that drop to today’s high-rate, low-affordability environment, as well as persistent misconceptions about the VA loan process.
In competitive markets where sellers favor conventional buyers, Veterans may feel pressured to avoid using their VA benefit. Misunderstandings, such as the belief that VA loans take longer to close or carry stricter terms, remain widespread. In reality, VA loans require no down payment or private mortgage insurance, allow sellers to cover all buyer closing costs plus up to 4% in concessions, and close on normal timelines when VA-specific steps are completed early.
