VA Loan Program Backs Record 1.4 Million Loans in FY 2021

Published on October 28, 2021

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Veterans: See what you can afford in 2023

VA loans keep making history.

This historic benefit program backed an all-time record 1.4 million loans in Fiscal Year 2021, a 16.5% increase from last year's previous record total, according to data from the Department of Veterans Affairs.

Despite skyrocketing home prices and tight inventory, VA loans to purchase homes were up 3.6% in FY21, the 10th year-over-year increase in a row. The VA backed just over 444,000 purchase loans, an all-time high. The average VA purchase loan was $344,274, up 13% from last fiscal year.

The VA refinance boom also showed few signs of slowing.

Veteran homeowners continue to tap into rates near modern-day lows in record numbers. Veterans secured nearly 1 million VA refinance loans in FY21, up 22% from last fiscal year. Nearly 85% of refinance loans were Interest Rate Reduction Refinance Loans (IRRRL), the program's low-cost, no-frills streamline option.

Once a small fraction of the mortgage market, VA loans today represent about 10 to 12% of the lending landscape.

Here's what the last decade in VA lending looks like in total loans:


Fiscal Year	Total Loans
2021	1,441,745
2020	1,236,815
2019	624,544
2018	610,512
2017	740,339
2016	707,107
2015	631,142
2014	438,498
2013	629,312
2012	539,884

Source: Department of Veterans Affairs

By Chris Birk

Chris Birk is the author of “The Book on VA Loans: An Essential Guide to Maximizing Your Home Loan Benefits.”

An award-winning former journalist, Chris writes about mortgages and homebuying for a host of sites and publications. His analysis and articles have appeared at The New York Times, the Wall Street Journal, USA Today, ABC News, CBS News, Military.com and more.

More than 300,000 people follow VA Loans Insider, his interactive VA loan community on Facebook.