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Veterans have access to an attractive loan program called the VA loan. If you served at least 181 days in the military and had an honorable discharge, you’re likely eligible.
If you haven’t used your entitlement yet, learn all about the VA loan, the best VA mortgage lenders, and what to look for in a VA loan below.
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There’s a lot to love about Veteran’s United. They took good care of our veterans, ensuring they get the best loan terms available.
With no down payment requirements, competitive interest rates, and low fees, it’s easy to see why they are the #1 VA lender in the country.
Their online process makes it easy to get the loan you need fast, but with plenty of human support available if you have questions.
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First, we love Quicken for any loan, not to mention VA loans. Because VA loans can be so confusing, we love the attention they give veterans with the dedicated mortgage professional assigned to you.
Quicken typically offers competitive rates and has a fast mortgage approval process, quickly getting you from application to closing.
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We like the opportunity New American Funding offers non-traditional borrowers. Sometimes your credit score or income doesn’t show the true story.
At first glance, it looks like you can’t afford a loan, when in fact, you could be a great borrower with unique circumstances. The fact that New American provides that chance offers more opportunities for more borrowers.
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NASB is licensed in all 50 states, even though they only have offices in MO. This makes it easy for any veteran to secure VA loan financing.
We love the low rates NASB offers, and the lack of origination or lender fees makes the loan even more affordable.
While VA loans are more affordable overall, NASB makes it even easier to secure financing.
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Finding a lender that focuses on VA loans besides the ‘big VA lenders’ in the country is hard. Most lenders add VA loans just to offer them but don’t put their heart and soul into them.
NBKC is different. They focus on VA loans, and almost half of their business is from veterans.
From their flexible guidelines to their quality customer service, it’s easy to see why many borrowers use them.
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Freedom makes it easy for veterans to get the financing they deserve. Whether you have a lower credit score or have unique circumstances, Freedom Mortgage works around it.
We like the option to work online or in-person and the competitive interest rates Freedom Mortgage offers.
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Any bank with a focus on VA loans is a bonus in our book. VA loans can be tricky and confusing for veterans.
Having a bank with qualified loan professionals who will walk you through the process is something you should look for just as much as you look for low-interest rates.
We also like that BNC doesn’t charge origination fees on VA loans, saving veterans even more money.
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We like the focus Veterans First provides veterans. The home loan process can be scary, especially for first-time homebuyers, but they walk you through it step-by-step.
We like their lower fees, online loan process, and excellent customer service to ensure you understand the VA loan you’re getting.
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LoanDepot has a streamlined process that gets borrowers from application to closing fast. The fast-closing process can be refreshing if you’re in a hurry or just don’t like waiting.
We did find that LoanDepot has more flexible guidelines than other banks for VA loans, too – some banks make the requirements harder to ensure you can afford the loan, but LoanDepot tends to be more flexible.
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We think it’s important to work with a lender with extensive VA loan experience like USAA Mortgage has.
Even though the entire process isn’t online, talking to a loan officer can work to your benefit when you’re securing VA financing. With flexible underwriting requirements and low fees, it’s easy to see why veterans like USAA.
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There’s just something about the service you receive at a credit union. Veterans and their families are eligible for membership at Navy Federal, giving them access to VA loans and the Navy Federal alternatives.
The low rates and personal service is something you won’t find everywhere.
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Credit unions are often a safe and affordable place to secure a VA loan.
PenFed doesn’t charge veterans any fees, which is great because there are still VA fees all borrowers must pay, making it cheaper for borrowers.
PenFed offers both purchase and refinance options for veterans, giving you more choices.
The VA makes it easy for veterans to qualify for a VA home loan. Here are the relaxed guidelines:
It’s easy to apply for a VA loan. Once you find a VA lender, you complete a loan application.
You’ll provide your supporting documentation, too, so the lender can underwrite your mortgage application and decide if you meet the requirements. All borrowers must provide:
Some online mortgage lenders offer a completely online process, and others require you to talk to a loan officer first and/or apply with a loan officer.
Either way, if you’re approved, you’ll get a mortgage preapproval letter. This letter means you are personally qualified to secure VA financing subject to the conditions they state, which are usually about the home but may include some conditions for yourself too.
>> More: How to Apply for a Mortgage
It’s always a good idea to compare loan quotes from at least 3 mortgage lenders. This ensures you’re getting the best deal, given your circumstances. Here’s what you should compare:
There isn’t a limit on the number of times you can use a VA loan, but you must always have entitlement.
Your entitlement is what you receive when you serve enough time in the military. Once you buy a house and use up your entitlement, it’s tied up with that home until you sell it and/or pay it off in full.
If you default on the loan, you’ll lose the entitlement dollar-for-dollar, but most veterans have full entitlement of $548,250. Technically, you should only have one VA loan at a time, but the VA allows a one-time exception for some veterans. If you are forced to move because your job relocated you or outgrew your home, you can keep it and use your remaining entitlement to buy another home.
This is on a case-by-case basis, though, and the VA must approve it. If you sell your home and pay off the loan in full, you may petition the VA to let you use your entitlement again. Most veterans can do so if they paid their loans on time.
The VA doesn’t require veterans to live in a home for a certain amount of time before selling it. If you plan to use your entitlement again, though, you must prove you paid the original loan off in full and no longer own the home. The VA doesn’t charge prepayment penalties or restrict you from paying your loan off early.
VA loans have the most competitive interest rates out of any loan. They often beat FHA and conventional loan rates, but it varies by lender and borrower like any loan.
It’s best to shop around to find the best deal by comparing at least three lenders.
There you have it. These are the Best VA Mortgage Lenders. If you qualify, shop around and compare rates from various lenders. This will help you choose a smart mortgage that is worthwhile and a good investment.
Methodology
To select the Best VA Mortgage Lenders, we reviewed and analyzed 25+ lenders that offer VA Home Loans. Our thorough evaluations include reviewing current VA loan rates, credit score requirements, closing times, closing costs, origination fees, industry reputations, customer support, down payment requirements, and security. Analysts also reviewed and consulted expert sources, such as the J.D. Power’s Mortgage Origination Satisfaction Survey, Department of Veteran Affairs, Home Mortgage Disclosure Act, Nationwide Mortgage Licensing Systems, and the Publicly Available Data provided by the Consumer Financial Protection Bureau. Read our editorial guidelines and rating methodologies for mortgage products to learn more about the integrity and accuracy of our reviews.
Kim Pinnelli is a Senior Writer, Editor, & Product Analyst with a Bachelor’s Degree in Finance from the University of Illinois at Chicago. She has been a professional financial writer for over 15 years, and has appeared in a myriad of industry leading financial media outlets. Leveraging her personal experience, Kim is committed to helping people take charge of their personal finances and make simple financial decisions.
