After slowing down last year, VA home loans are gaining momentum again. New data shows more veterans are using VA loans to buy or build homes, especially younger buyers. This increase suggests renewed confidence in the housing market and highlights how VA home loan growth is helping veterans move forward despite ongoing affordability challenges.

VA home loan activity increased significantly in the 2025 fiscal year. More than 528,000 VA loans were issued, which is about 112,000 more than the year before. That represents nearly a 27% increase year-over-year, showing a strong recovery after last year’s slowdown.

While Millennials still made up the largest number of VA borrowers, the fastest growth came from Generation Z veterans. Gen Z, generally born in the early 2000s, saw VA loan use rise by about 38% in just one year. Other age groups had much smaller increases, showing that younger veterans are driving much of the recent VA home loan growth.

Many Gen Z veterans are entering the housing market for the first time, often during a period of higher home prices and interest rates. VA loans offer helpful benefits that make buying a home more achievable. These include no required down payment, lower interest rates, and no private mortgage insurance.

These features allow younger buyers to compete with other buyers while keeping monthly costs more manageable. As a result, VA loans are becoming an important tool for Gen Z veterans who want to purchase a primary home or invest in long-term stability.

Some areas are seeing stronger growth than others, especially places with large military communities. The Killeen metro area saw nearly a 60% increase in Gen Z VA loans year-over-year, placing it among the fastest-growing markets in the country. Despite having a smaller population, Killeen also ranked high in total VA loan use compared to much larger cities.

The recent increase in VA lending shows how younger veterans are reshaping today’s housing market. With affordability still a concern, VA loans continue to offer valuable support to buyers who are just getting started. As more Gen Z veterans choose where to settle down, VA home loan growth is likely to remain strong in military-focused communities and beyond.