Most Popular States for VA Loans in 2025 (So Far)
As of May 31, 2025, the Department of Veterans Affairs (VA) has guaranteed over 259,000 loans, totaling more than 100 billion in loan volume with an average loan amount of $387,461.
Because the VA loan offers exclusive benefits, such as zero down payment requirements, no private mortgage insurance (PMI), and more competitive interest rates than conventional loans, these loans make homeownership accessible for veterans and active-duty service members.
Loan volume data from the VA provides insight into trends about where and how VA loans are most frequently used. Which states stand out as the most popular for VA loans?
Check your VA home buying eligibility. Start here (Jul 14th, 2025)VA Home Loans: A Powerful Benefit for Veterans and Military Families
VA home loans are designed to make homeownership more accessible for veterans, active-duty service members, and eligible surviving spouses. What makes this program stand out? It removes some of the biggest hurdles that typically come with buying a home—starting with the down payment.
Top Benefits of a VA Loan
- Zero Down Payment
With no down payment required, VA loans offer a significant advantage to buyers who may not have substantial savings. - Lower Interest Rates
VA loans often come with interest rates that are lower than those of conventional mortgages, helping borrowers save money over the life of the loan. - Flexible Credit Standards
You don’t need perfect credit to qualify. VA loans are more forgiving, making them a viable option for borrowers with less-than-stellar credit histories. - No Private Mortgage Insurance (PMI)
Unlike many other loan types, VA loans don’t require PMI. That could mean savings of hundreds of dollars per month.
Top States by VA Loan Volume in Q1 & Q2 2025
|
State |
Total Number of Loans |
Average Loan Amount |
Total Amount Loaned |
Total Purchase Loans |
Total Refinance Loans |
|
Texas |
26,541 |
$381,127 |
$10,115,480,566 |
19,368 |
6,806 |
|
Florida |
22,643 |
$396,844 |
$8,985,729,787 |
13,468 |
5,323 |
|
North Carolina |
16,355 |
$342,458 |
$5,600,899,347 |
8,762 |
4,772 |
|
Virginia |
15,509 |
$446,628 |
$6,926,754,119 |
8,554 |
4,579 |
|
California |
13,896 |
$604,799 |
$8,404,290,494 |
7,064 |
4,264 |
|
Georgia |
13,644 |
$351,153 |
$4,791,134,149 |
6,925 |
3,925 |
|
South Carolina |
8,668 |
$349,165 |
$3,026,560,497 |
4,974 |
2,300 |
|
Arizona |
8,653 |
$415,302 |
$3,593,606,181 |
4,559 |
2,557 |
|
Tennessee |
8,596 |
$366,595 |
$3,151,253,815 |
4,385 |
2,390 |
|
Ohio |
7,887 |
$285,680 |
$2,253,161,159 |
3,927 |
2,309 |
|
Colorado |
7,377 |
$499,248 |
$3,682,951,576 |
4,033 |
2,224 |
|
Washington |
7,165 |
$506,487 |
$3,628,982,606 |
3,694 |
2,245 |
|
Alabama |
6,894 |
$324,686 |
$2,238,385,727 |
3,744 |
1,890 |
|
Maryland |
6,261 |
$491,389 |
$3,076,587,081 |
3,227 |
1,959 |
|
Missouri |
5,682 |
$296,290 |
$1,683,517,878 |
2,880 |
1,798 |
|
Pennsylvania |
5,420 |
$314,583 |
$1,705,042,469 |
2,795 |
1,423 |
|
Illinois |
5,387 |
$313,814 |
$1,690,515,788 |
2,912 |
1,538 |
|
Michigan |
5,147 |
$285,891 |
$1,471,483,126 |
2,449 |
1,559 |
|
Indiana |
5,136 |
$288,296 |
$1,480,690,303 |
2,505 |
1,546 |
|
Oklahoma |
4,485 |
$289,761 |
$1,299,579,176 |
2,551 |
1140 |
Trends in Top States and VA Loan Originations
- Having the largest veteran population in the U.S., Texas leads in volume and loan origination count, with nearly 73% of its VA loans going toward home purchases.
- California has the highest average loan amount ($604,799), reflecting elevated property values and larger loan limits in the state. Despite higher home prices, the state’s large veteran population and housing demand drive VA loan usage.
- Florida remains attractive for retirees and veterans due to favorable tax policies and climate.
- Georgia and Colorado boast growing veteran communities and economic opportunities, making these states appealing places to settle.
- Hawaii, Washington DC, and California lead with the highest average loan amounts, reflecting more expensive housing markets.
- With home prices rising, homeowners in states like Florida, California, and Georgia are leveraging Cash-Out Refinancing to access substantial equity.
- While total Purchase Loan volume dropped slightly from Q1 to Q2, the average loan amount remained steady. Purchase loans continue to dominate VA loan activity, with the majority of loan originations in each state.
- Q1 2025 saw a rise in Interest Rate Reduction Loans (IRRRL) across most states (33.93% of loan originations in Q1), as interest rates declined from Q4 2024. Also known as a VA streamline refinance, the IRRRL loan share fell in Q2 as interest rates began to inch up.
- Holding fairly steady throughout the first half of the year, Cash-out Refinances remain a popular way for homeowners to access funds across most states.
Factors Influencing VA Loan Distribution
- Veteran Population Density: States like Texas and Virginia with larger veteran populations naturally see higher VA loan usage.
- Housing Affordability: More affordable states like Ohio, Alabama, and Missouri attract veterans seeking homeownership opportunities.
- State Policies: Property tax exemptions for qualifying veterans vary by state and can influence decisions. States like Ohio, Illinois, Tennessee, and North Carolina offer full property tax exemptions under certain conditions, while most other states offer partial exemptions.
- Economic Opportunities: Employment prospects and quality of life play a role in homeownership decisions.
Closing Thoughts and Outlook for 2025
Since its creation in 1944, the VA home loan program has remained one of the most valuable benefits for veterans. Offering zero-down financing, flexible credit score requirements, and competitive interest rates, VA loans represent a powerful homeownership opportunity for service members to build equity and stability.
If you’re a veteran, active-duty service member, or surviving spouse of a veteran, a VA loan can be the key to your financial goals in 2025.
