National Study Released by NDP Analytics Concludes Increasing the VA Home Loan Funding Fee Could Put Benefit out of Reach for Thousands of Veterans

Published : Monday, August 19, 2019, 12:51 pm
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COLUMBIA, Mo.--(BUSINESS WIRE)--A national study conducted by NDP Analytics has concluded that increasing the funding fee and rising interest rates are projected to significantly decrease the number of Veterans and servicemembers able to utilize the benefit as their path to home ownership. The study was written by Dr. Nam D. Pham and Mary Donovan, of NDP Analytics

“The VA Home Loan Program has helped millions of Veterans and servicemembers secure mortgages to purchase their homes,” Pham said. “Additionally, the residual economic impact of the program is far-reaching, supporting 361,862 jobs across all industries that earn $12.7 billion per year. VA purchase loans generate another $47.3 billion in economic activity and contribute $27.6 billion value-added to the U.S. GDP. Raising the VA funding fee will have a dramatic impact on these key drivers for the U.S. economy.”

Key Findings include:

  • The latest statistics show 76 percent of Veterans are homeowners compared to 62 percent of non-Veterans.
  • Raising the first-use VA Funding Fee by 100 basis points (1 percentage point) would push more than 100,000 first-time buyers away from using their VA loan benefit.
  • A rising rate environment coupled with continued increases of the VA Funding Fee would hurt waves of military buyers and communities that depend on the economic impacts of housing. As many as 365,000 Veterans and military families would be priced out of using their home loan benefit if rates and fees keep rising.
  • More than 685,000 Veterans and military members used their VA loan benefit during Fiscal Years 2016-2018, with an average loan amount of $257,077.

About Veterans United Home Loans

Veterans United Home Loans is based in Columbia, Missouri, the full-service national lender financed more than $10.5 billion in loans in 2018. Its mission is to help Veterans and service members take advantage of the home loan benefits earned by their service. Earlier this year, Veterans United was named No. 23 of the Fortune 100 Best Companies to Work For, according to Great Place to Work® and Fortune Magazine. The company’s employee-driven charitable arm, Veterans United Foundation, is committed to enhancing the lives of Veterans and military families nationwide by focusing on supporting military families and nonprofit organizations that strengthen local communities. Veterans United Home Loans and its employees have donated more than $50 million to the Foundation since its founding in November 2011. Learn more at

### | 1-800-884-5560 | 1400 Veterans United Drive, Columbia, MO 65203 | NMLS ID #1907 ( A VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Equal Opportunity Lender. Mortgage Research Center, LLC.


Chris Cline
(573) 817-4523

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