Gen Z Veterans Driving Record Growth in VA Home Loans

A fresh analysis of VA loan trends shows that younger veterans specifically those from Generation Z are emerging as a powerful force in today’s housing market.

According to a report by Veterans United Home Loans using Department of Veterans Affairs data from the first half of fiscal year 2025, VA loan usage is booming. Overall VA loan volume has surged by 45% compared to the same period last year. While purchase loans rose nearly 10%, refinance activity skyrocketed by almost 150%.

Leading that surge? Gen Z service members and veterans. This age group saw a massive 459% increase in VA refinance loans—a sign that many younger homeowners are taking advantage of better interest rates compared to recent years.

Gen Z now holds a record-high 12% share of the VA purchase loan market—up from just 4% in 2022. For perspective, they accounted for only 3% of the broader mortgage market last year, according to the National Association of Realtors (NAR).

“This kind of growth is proof of how impactful the VA loan program continues to be,” said Chris Birk, Vice President of Mortgage Insight at Veterans United. “Young veterans are jumping into homeownership, and this benefit is helping them overcome obstacles that could otherwise delay their goals.”

Despite generally earning less and being less likely to have dependents, Gen Z buyers are securing homes, albeit often older ones. NAR data shows they follow a pattern similar to younger millennials in choosing more affordable properties.

Millennials still represent the largest share of VA borrowers, accounting for nearly half of all VA purchase loans. But Gen Z is rapidly catching up, especially in areas with a strong military presence such as San Antonio, Virginia Beach, and Colorado Springs locations where many younger vets are purchasing homes soon after discharge or even while still serving.

“We’ve never seen this level of engagement from Gen Z with VA loans,” Birk added. “They’re informed, strategic, and know the value of no-down-payment mortgages especially with housing prices and interest rates being what they are.”

Boosting Awareness of VA Loan Benefits

Despite these encouraging trends, many eligible veterans still aren’t taking advantage of VA loans. In fact, only around 10–15% of those who qualify ever use the benefit, with some states seeing participation rates as low as 6%.

To tackle this gap, Senators John Boozman and Chris Van Hollen introduced the Veterans Affairs Loan Informed Disclosure (VALID) Act of 2025. The bipartisan bill supported by organizations like the Veterans Association of Real Estate Professionals (VAREP), Broker Action Coalition, and NAR aims to better inform veterans about their mortgage options.

If passed, the VALID Act would:

• Update federal loan disclosures to include side-by-side comparisons of VA, FHA, and conventional loan options.
• Require lenders to consider applicants’ military service early in the mortgage process and present VA loan options accordingly.

“We owe it to our veterans to ensure they’re aware of every tool at their disposal,” said Sen. Boozman. “This legislation is about giving former servicemembers the information they need—up front—to make the best financial decision.”

A companion bill has also been introduced in the House of Representatives by Reps. Brittany Pettersen, Young Kim, Nikema Williams, and Harriet Hageman.

“Asking our veterans to navigate the homebuying process without full transparency on their benefits is unacceptable,” said Rep. Kim. “The VALID Act is a commonsense step toward honoring our commitment to them.” For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.