"The metros with the greatest underutilization of VA loans were Barnstable Town, Massachusetts; San Jose; and Naples, Florida. The report said these areas share similar characteristics, such as high home prices, elevated median incomes and smaller veteran populations a combination that can make homes less affordable and the VA loan program less visible to both buyers and real estate professionals."
"Metropolitan areas such as New York, Los Angeles and Boston each exceeded $1 billion in lost VA loan volume, according to estimates. These higher-cost markets already face affordability challenges, amplifying the potential impact of unused VA loan benefits. Not all of the underutilized markets are expensive coastal cities. Smaller, lower-cost metros such as Glens Falls, New York; Lancaster, Pennsylvania; and Waterloo, Iowa, also ranked among the top 25 for missed VA loan opportunities."
Analysis compared local VA home loan usage to the national rate while adjusting for each metro's veteran population. VA loan popularity rose after the Great Recession, but usage remains inconsistent and often disproportionately low. Thousands of veterans may be missing out on VA loan advantages in both high-cost metros and smaller markets. Markets with greatest underutilization tend to combine high home prices, elevated median incomes and smaller veteran populations, reducing program visibility and competitiveness versus conventional buyers. Some large metros show over $1 billion in estimated lost VA loan volume. Greater education and access could increase utilization.
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