VA mortgages are originated in areas where you might not expect. The map in the image shows the counts of new VA mortgages by county in continental U.S. from January 2008 through June 2008. Most of the time the most mortgages of a particular type is in counties with the largest populations (e.g. Los Angeles). For VA mortgages, the leading counties include Bexar Texas, El Paso Colorado, Cumberland North Carolina. The counties near those leading VA counties also have high numbers of VA mortgage originations. This shows that the VA mortgages are originated in geographic clusters.
Eventually the high population counties will see more VA mortgages as sources for mortgage financing become more difficult in the conventional mortgage market space.