New Study: VA Loans Have Contributed $3.9 Trillion to the U.S. Economy

The VA loan benefit turns 80 on June 22, part of the original GI Bill of Rights that helped propel the nation's postwar boom.

A first-of-its-kind analysis reveals how much this hard-earned benefit has meant not just to generations of Veterans and service members, but to the American economy as a whole.

VA loans have added as much as $3.9 trillion to the economy since their creation, according to University of Missouri economist Joe Haslag.

Professor Haslag came up with the figure in part by using historical VA lending volume, overall mortgage market figures and longterm gross domestic product (GDP) data. He conducted the unique analysis on behalf of Veterans United.

"The main takeaway from this analysis is that the impact is big," Professor Haslag wrote in his 13-page report. "The VA home loan guaranty program has had a substantial economic impact on the United States' economy."

The analysis essentially considers what the economy would have looked like if the VA loan hadn’t existed.

The loan program has withstood various market changes over the decades. VA loans accounted for as much as 11% of new home mortgages in the postwar building boom. Total VA loan volume in 1947 was more than $3 billion, compared to its $447 billion peak in 2021, according to the study.

Veterans and service members have turned to the benefit in waves since the Great Recession. The VA has now backed more than 28 million loans, with about 40% coming in the last two decades alone.

"Based on the quantitative analysis, the return on the investment is positive for the VA home loan guaranty program," Haslag wrote.

You can read the full economic impact report below:

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