VA mortgage statistics by state
VA mortgages are available to veterans and service members to help make purchasing or refinancing a home easier and more affordable. These loans are backed by the U.S. Department of Veterans Affairs (VA) and offer competitive interest rates, low or no down payments and affordable closing costs. The number of VA mortgages spiked in 2020 and 2021 when many borrowers were able to lock in low interest rates.
In 2022, VA loans accounted for 10.2% of all newly originated home loans (for one- to four-unit properties).
Jump to insightThe average VA loan amount in 2023 was $360,863. Hawaii had the highest average loan, at $687,161, while Iowa had the lowest average loan amount ($250,562).
Jump to insightIn 2023, Texas was the state with the most VA loan recipients, with more than 43,000. Vermont had the fewest, with just over 400.
Jump to insightBetween 2021 and 2023, the total number of new VA mortgages decreased by 72%. In particular, the number of VA refinance loans plummeted.
Jump to insightVA mortgage statistics
The VA loan program originated in 1944 and since its inception, has backed more than 25 million loans. In 2022, VA mortgages accounted for just over 10% of all newly originated mortgages on one- to four-unit owner-occupied properties.
VA mortgages are available for eligible borrowers who are looking for a purchase loan for a new home or those wanting to refinance an existing home loan. In 2023, purchase loans accounted for just under 80% of all VA loans. However, as recently as 2021, refinance loans outnumbered purchase loans. Refinances accounted for 69% of all VA loans that year.
Average interest rates on mortgages can vary significantly depending on market conditions. As evidenced by the chart below, VA mortgage rates tend to rise and fall with a larger economy.
Average VA loan amount by state
In 2023, the average amount of a VA loan for the purchase of a house in the U.S. was $360,863. The amount of a VA loan depends on the value of the house being purchased, which means that average loan amounts vary significantly between states. Not surprisingly, the average VA loan amount in Hawaii, which has the highest home prices in the nation, is much higher than the average loan amount in Iowa, which has some of the lowest housing prices in the U.S.
In 2023, the five states with the highest average VA loan amount were Hawaii, California, Colorado, Washington and Utah.
In contrast, the five states with the lowest average VA loan amount in 2023 were Iowa, Michigan, Ohio, Kansas and Arkansas.
Total loans by state
In 2023, residents of Texas took out 43,850 VA loans in 2023 — more than any other state. Floridians accounted for another 40,301 VA loans. No other state totaled more than 25,000. The chart below includes both loans for home purchases and refinance loans.
Total VA loan amounts in the U.S.
The VA issued a total of 400,692 loans in 2023. Of these, nearly 80% (320,272) were purchase loans. The remainder were refinance loans, including cash-out and interest rate reduction loans. In 2023, the total value of all VA loans reached $144.6 billion.
The number of VA loans in 2023 was down significantly from previous years, primarily due to a reduction in refinance loans. Rising interest rates likely played a role in the decreased number of such loans.
VA mortgage rates
The U.S. Department of Veterans Affairs does not set the interest rates on VA loans. Instead, the private lenders who offer VA loans determine those rates. Because the VA guarantees these loans against default, lenders generally offer competitive interest rates. As of May 2024, the average rate on a 30-year fixed VA mortgage was 6.583%. In comparison, the average rate across all 30-year fixed mortgages in the U.S. as of mid-June 2024 was 6.99%.
What factors affect VA loan rate?
A number of factors affect the VA loan rate, some of which are particular to the potential borrower and others impacting all borrowers.
- Market conditions: Current economic conditions, including the interest rate set by the Federal Reserve, can cause VA mortgage rates to fluctuate.
- Loan type: VA loans include purchase loans, jumbo purchase loans, cash-out refinance loans and streamline refinance loans, among others. The type of loan you select will impact the interest rate.
- Loan duration: Like many other mortgages, VA loans are available in different time spans, including 15-year, 20-year and 30-year loans. Generally, shorter loans will have lower interest rates.
- Credit score: A borrower's credit score impacts the loan rate they receive. Borrowers with higher credit scores qualify for lower interest rates.
FAQ
What is the average VA loan amount?
In fiscal year 2023, the average VA loan amount was $360,863. In the second quarter of 2024, that number had risen to $364,767.
What is the lowest VA mortgage rate today?
The lowest VA loan mortgage rate will vary by lender and type of loan. As of June 12, 2024, Veterans United — the largest VA home lender — was offering interest rates of 6.125% on 30-year fixed purchase loans.
What is the average rate for a VA loan?
The average rate for a VA loan is highly dependent on a borrower’s individual situation and the economic conditions at the time of the loan. The majority of VA borrowers (56.8%) have loans with interest rates of 5% or less.
References
- “Loan Volume by State - FY 2023 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2022 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2021 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2020 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2019 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2018 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2017 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2016 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2015 Total.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “30-Year Fixed Rate Veterans Affairs Mortgage Index.” Federal Reserve Bank of St. Louis. Evaluated June 5, 2024.Link Here
- “Loan Volume by State - FY 2024 Q2.” U.S. Department of Veterans Affairs. Evaluated June 5, 2024.Link Here
- “30-Year Fixed Rate Mortgage Average in the United States.” Federal Reserve Bank of St. Louis. Evaluated June 12, 2024.Link Here
- “The Role of the Department of Veterans Affairs in the Single-Family Mortgage Market.” Congressional Budget Office. Evaluated June 5, 2024.Link Here
- “Summary of 2022 Data on Mortgage Lending.” Consumer Financial Protection Bureau. Evaluated June 5, 2024.Link Here
- Birk, C. “VA Loan Rates.” Veterans United Home Loans. Evaluated June 12, 2024.Link Here
- Goodman, L., et al. “VA Home Loans Have Several Advantages but Could Do More to Support Military Members Facing Financial Hardship.” Urban Institute. Evaluated June 5, 2024.Link Here
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