VA Loan Volume Topped 500K: What It Means for Agents

Military homebuyers remain a meaningful source of purchase demand as high costs continue to limit many first-time buyers.

VA loan volume topped 500,000 in fiscal year 2025, with total VA lending rising 26.8% year over year, according to Veterans United. Purchase loans also increased, while refinance activity rose sharply.

For real estate agents, the takeaway is practical: VA-eligible buyers are still active in a market where many first-time buyers face higher barriers to entry. The latest NAR buyer profile found that first-time buyers fell to a record-low 21% of the market, while the median first-time buyer age rose to 40.

VA financing does not remove every barrier. Borrowers still need to qualify with a lender, and homes must meet VA property requirements. But for eligible veterans, service members, and certain surviving spouses, VA purchase loans can often offer no down payment, competitive rates, and no private mortgage insurance.

Why VA buyers may be younger than agents expect

More than 30% of FY2025 VA-guaranteed home loans went to veterans under 35, representing nearly 170,000 loans. That makes VA buyers an important group for agents to understand, especially those who work with younger buyers, relocation clients, and first-time homebuyer pipelines.

The contrast with the broader market is notable: the median first-time buyer age is now 40, while younger veterans are using VA financing to enter the market earlier. That means agents should not assume military buyers are limited to older buyers or markets near military installations.

What buyer consultations should cover

Buyer’s agents should make military service part of the early intake conversation.

That does not mean pushing every eligible client toward a VA loan. It means asking enough questions to identify whether the buyer may have a benefit worth exploring. Some eligible clients may not realize VA loans can be reused, apply beyond first-time purchases, or may be available to certain surviving spouses.

Once a buyer may be eligible, the next step is lender coordination, including a clear discussion of closing costs, appraisal requirements, property condition standards, and how the offer will be evaluated by a seller.

This is also important after changes to buyer representation practices. Under a temporary VA policy effective for contracts executed on or after Aug. 10, 2024, eligible VA buyers may pay certain buyer-broker charges, provided the charges are reasonable and customary for the area. Agents should confirm current brokerage and lender guidance before applying that rule to a client’s transaction.

How listing agents should frame VA offers

Listing agents should address seller concerns about VA appraisals, closing timelines, and repair requirements before those concerns affect the offer review.

A better seller conversation compares price, earnest money, contingencies, appraisal risk, buyer qualification, property condition, and closing timeline. A VA buyer with strong financing and a clean offer may be more competitive than a conventional buyer with a weaker preapproval or more contingencies.

VA Minimum Property Requirements can create repair conversations, but they focus on whether the property is safe, sanitary, and structurally sound. Listing agents should help sellers understand whether an issue is likely to affect the transaction before dismissing a VA offer as risky.

The agent takeaway on VA buyers

Buyer’s agents should screen for military eligibility early. Listing agents should prepare sellers to evaluate VA offers on measurable terms. Brokerages in military-heavy markets should treat VA fluency as core training, but the data suggests this is relevant beyond base towns.

With more than 500,000 VA loans guaranteed in FY2025, the agent takeaway is practical: identify possible VA eligibility early, explain the tradeoffs clearly, and evaluate VA offers on their actual terms. Agents who understand the program are better positioned to serve eligible clients, protect offer opportunities, and avoid outdated assumptions that can cost buyers and sellers a viable deal.