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7 Best VA Loan Lenders of 2023
By Michelle Lambright Black MONEY RESEARCH COLLECTIVE
Highest in customer satisfaction for 8 consecutive years
620
Yes
30-year fixed rate, 25-year fixed rate, 15-year fixed rate
Rate match guarantee
N/A
Yes
Purchase loans, IRRRL, Military Choice loan
Up to $2,500 in lender credits
620
Yes
30-year fixed rate, 15-year fixed rate
A VA loan is a mortgage designed to help military families and veterans achieve the goal of homeownership. VA loans offer numerous benefits, including a zero down payment and competitive interest rates for qualified borrowers.
Read on to discover our top picks and reviews of the best VA loan lenders of 2023.
Table of Contents
Our Top Picks for Best VA Mortgage Lender
Best VA Mortgage Lenders Reviews
How We Found the Best VA Loan Lenders
Summary of the Best VA Loan Lenders of 2022
Our Top Picks for Best VA Loan Lenders
- Best Online Lender: Rocket Mortgage
- Best for First-Time Homebuyers: Navy Federal Credit Union
- Best for Credit Challenges: New American Funding
- Best for Competitive Rates: PenFed Credit Union
- Best Loan Marketplace for Comparing Rates: LendingTree
- Best for Updated Rates Daily: USAA
- Best for Experience in VA Lending: Freedom Mortgage
Best VA Mortgage Lenders Reviews
Best Online Lender: Rocket Mortgage
Rocket Mortgage gets the nod as the best online lender for VA loans for the company’s user-friendly application process and positive customer service rating.
- User-friendly online application process
- Accepts debt-to-income (DTI) ratios as high as 60%
- Instant income and employment verification
- No branches
- Fees may be higher than average
- Minimum Credit Score
- 580
- Minimum Down Payment
- Potentially 0%
- Loan Terms
- 30-year, 25-year, and 15-year fixed adjustable
The country’s largest mortgage lender since 2017, Rocket Mortgage was the first to offer consumers an online platform for mortgage loans. And, according to J.D. Power, it also has the highest customer satisfaction rating out of all the mortgage originators included in its most recent U.S. Primary Mortgage Origination Satisfaction Study — a distinction Rocket has earned since 2014.
Rocket Mortgage offers 30-year, 25-year and 15-year fixed interest VA loans (as well as adjustable-rate mortgage loans) to qualified borrowers. But if you prefer an in-person experience when you apply for financing, you might be disappointed to discover that Rocket Mortgage has no physical branches.
Best for First-Time Homebuyers: Navy Federal Credit Union
Navy Federal Credit Union is our best lender for first-time homebuyers for several reasons, including the fact that it doesn’t impose a minimum credit score requirement on VA mortgage products.
- $400 to $9,000 cash back when you use the Navy Federal RealtyPlus Network
- Special expertise in VA loans
- Rate Match Guarantee
- Membership is limited to veterans, servicemembers and DoD employees
- Minimum Credit Score
- No Minimum Credit Score
- Minimum Down Payment
- 0%
- Loan Terms
- 10- to 30-year fixed
Navy Federal lets homebuyers relock their VA loan’s interest rate at no additional cost if mortgage rates go down prior to closing. Its Rate Match Guarantee promises that if you find a lower rate with another lender, Navy Federal will match it or give you $1,000.
Qualified veterans, active-duty military members, Department of Defense employees, and their families are all eligible to join the credit union and take advantage of the benefits and loan products it offers. These include VA loans, VA streamline refinance loans (IRRRL) and the Military Choice loan (for those with no remaining VA loan entitlement).
Best for Credit Challenges: New American Funding
New American Funding is best for borrowers with lower credit scores, allowing eligible borrowers to take out a VA loan with a credit score as low as 580.
- Loans potentially available to borrowers with lower credit scores
- Bilingual agents available (English/Spanish)
- Considers non-traditional credit data
- No loans in New York State
- Rate quotes require a hard credit inquiry
- Minimum Credit Score
- 580
- Minimum Down Payment
- 0%
- Loan Terms
- Not stated
Unlike other lenders, New American Funding provides VA loan options for borrowers with lower credit scores. While the VA itself doesn’t set a credit score minimum for the VA home loan program, many VA lenders set their credit score requirements at 620 or higher.
New American Funding also aims to help would-be borrowers by considering details like utility bills and rent payments — if needed — in addition to traditional credit history. Also, the lender focuses on increasing homeownership in minority communities and is 44% ahead of the mortgage industry in lending to minority borrowers.
Best for Competitive Rates: PenFed Credit Union
We chose PenFed Credit Union for its loan products featuring no lender fees (e.g., origination fee, application fee, etc.) and lender credits of up to $2,500 for qualified borrowers.
- Lender credits of $500 to $2,500
- No lender fees
- No prepayment penalties
- Additional loan fees may apply
- Doesn't consider alternative credit data
- Minimum Credit Score
- 620
- Minimum Down Payment
- 0% for Qualified Veterans with Full Entitlement
- Loan Terms
- 15- and 30-year fixed 3/1, 5/1, 7/1 Adjustable
PenFed Credit Union has a reputation for offering competitive VA loan rates to its members. Besides offering low rates, PenFed also waives other costs like VA funding fees and offers optional discount points borrowers can purchase to get a lower interest rate.
PenFed offers both 30-year and 15-year fixed rate VA loans to qualified borrowers. The credit union also has a VA streamline refinance loan with attractive features such as no closing costs and no appraisal required.
Best Loan Marketplace for Comparing Rates: LendingTree
We chose LendingTree as the best loan marketplace for comparing interest rates on VA loans because it offers homebuyers a system to receive and review multiple loan offers by completing a single application form.
- Receive competing quotes from multiple lenders with a single interest form
- Mobile app makes it easy to compare loan offers
- No hard credit inquiry
- Not a lender
- Minimum Credit Score
- N/A
- Minimum Down Payment
- N/A
- Loan Terms
- Varies by lender
The process that LendingTree offers makes it easier to compare interest rates and loan terms from multiple lenders to find the best fit for your borrowing needs. You can also use the platform to get a general idea of current interest rates. Comparing loan offers through LendingTree doesn’t result in hard credit inquiries that might temporarily lower your credit score.
Best for Daily Updated Rates: USAA
USAA is a membership organization that provides banking and lending services to the military community only. The company provides basic checking and saving services, credit card accounts, auto loans, retirement investment products and other financial services. Its financial solutions are tailored to the unique needs of veterans, active service members and their families.
USAA offers competitive rates, and they publish their updated rates daily. On the day we checked, the company’s advertised rate on a 30-year fixed mortgage was about three-quarters of a point lower than average. If you’re already a homeowner and would like to access the equity you have in your home, USAA can help you with cash-out refinancing through the VA. If rates have dipped since you first bought your home, you may want to apply for one of the organization’s Interest Rate Reduction Refinance Loans (IRRRL) to bring down your monthly interest payments. USAA loan officers are available to help you review your many VA loan options and find the most advantageous one for your personal finance circumstances.
USAA also makes conventional loans available to its members.
Best for Experience in VA Lending: Freedom Mortgage
Freedom Mortgage gets our nod for the most experienced government-backed mortgage provider. In 2021, the company ranked first for VA loan originations and second for FHA loans. It also offers low-interest USDA loans. Home buyers and homeowners who qualify for these loan options can lower their monthly mortgage payments and save thousands of dollars over the lifetime of their loans versus customers who take out conventional mortgages.
Freedom Mortgage is rated A+ by the Better Business Bureau. The company is regularly featured in “best VA lenders” lists as determined by leaders in the financial press.
Freedom Mortgage offers a well-honed online experience. The company publishes quite a bit of information to educate VA-eligible borrowers on the ins and outs of VA lending, including an explanation of how to qualify for a VA loan, various checklists and calculators, a glossary of mortgage terms, a learning center that covers many real estate and lending topics, and a homeowner’s blog. VA-eligible borrowers can check the estimated mortgage rate they’re likely to be offered and prequalify online in about 5 minutes.
VA Loan Guide
VA loans are designed to make it easier and more affordable for our nation’s servicemembers, veterans and their families to become homeowners. The guide below will help you discover how VA loans work, their benefits and drawbacks and how you can apply for this type of mortgage loan.
What do you need to know about a VA loan?
In many ways, using a VA purchase loan to buy a home is similar to other types of mortgages. For example, you’ll have to fill out a mortgage application, provide supporting documentation and meet the lender’s eligibility requirements.
Yet there are some critical differences with VA loans that are important to understand.
- VA loan eligibility: The Department of Veterans Affairs outlines specific criteria you must satisfy to be eligible for any VA loan, including VA purchase loans, Interest Rate Reduction Refinance Loans (IRRRL), VA cash-out refinance and the Native American Direct Loan (NADL) program.
- No private mortgage insurance: VA loans do not require private mortgage insurance (PMI). With conventional loans, by comparison, lenders will typically require PMI unless you provide a 20% down payment.
- VA funding fee: Unless you have a military service-related disability or another event that makes you eligible for a waiver, either you, the seller of the property or the lender will have to pay a VA funding fee in cash at the time of closing. Otherwise, the fee will be rolled into your loan. VA funding fees vary between 1.40% and 3.60% of the loan amount, based on factors like your down payment size and whether it’s your first time using the VA home loan benefit.
- No loan limit: If you qualify for a full VA home loan benefit, you don’t have to worry about loan limits. This differs from other types of mortgages (except jumbo loans), where there is a maximum loan limit based on the state and county where you’re purchasing a property. Of course, you’ll still need to satisfy a lender’s income and DTI requirements to show that you can afford to pay for the home.
- Credit Alert Verification Reporting System (CAIVRS): When you apply for a VA loan, the lender will consult the federal debt default tracking system, CAIVRS. If you have defaulted on federal debt in the past (e.g., student loans, VA loans, etc.) you may have trouble qualifying for a new VA loan.
- VA appraisal: When you’re using a VA loan to purchase a property, the lender has to work with a VA-approved appraiser. The specialty appraisal costs more than a standard appraisal because there are extra steps involved, including verifying the minimum property requirements set forth by the Department of Veterans Affairs.
How to qualify for a VA loan
Qualifying for a VA loan can be more complicated than for other types of mortgages. Not only will you need to satisfy a mortgage lender’s criteria, you’ll also need to verify whether you’re eligible to use the VA home loan benefit in the first place.
Request a Certificate of Eligibility
The first step to qualifying for a VA loan is verifying your VA Home Loan eligibility. You will need to request a Certificate of Eligibility (COE) to provide to your lender, proving that you qualify for the VA home loan benefit.
You may be eligible for a COE if:
- You’re a veteran, active duty servicemember, National Guard member or Reserve member who meets the minimum service requirements listed by the U.S. Department of Veteran Affairs.
- You did not receive a dishonorable discharge.
- You’re a qualified surviving spouse of an eligible Veteran or servicemember.
- You’ve received an entitlement restoration from your state’s VA regional loan center if you’ve used a VA loan in the past.
You can visit the Department of Veterans Affairs website and use the free online tool to calculate your VA Home Loan benefit and request a Certificate of Eligibility.
Qualify with a private lender
Once you provide a private lender with your COE showing that you can use the VA entitlement, the lender will want to verify your creditworthiness. You’ll need to answer questions about your credit history, employment history, income, existing debts and more. The lender will use this information to decide whether to approve or deny your loan application.
VA loan requirements tend to be less stringent compared to other types of mortgages. Since the federal government backs a portion of the loan, the lender knows it will receive at least some form of repayment in the event the borrower defaults. That security allows VA loan lenders to be less strict when it comes to approving home loan applicants. Nonetheless, serious credit problems, a high debt-to-income ratio, low or inconsistent income or employment issues could still be deal breakers.
How to apply for a VA home loan
Step one: Find a lender
Once you have your COE, you can start the search for a VA-approved lender. Not all lenders offer VA loans but some specialize in this type of financing.
It’s wise to review loan offers from several lenders. A Freddie Mac study found that borrowers could save $1,500 on average by getting one extra rate quote on a mortgage loan. Meanwhile, borrowers who compared five loan offers could double that amount, on average.
Step two: Fill out your loan application
After settling on a lender, you may be ready to fill out your VA loan application. It helps to gather key financial information and documents ahead of time since there are a lot of details you will need to provide your lender at this step of the loan process.
Some of the documents you should have at hand include:
- Certificate of Eligibility
- W-2 forms (2 Years)
- Tax returns (2 Years)
- Most recent pay stubs
- Bank statements (2 Months)
- Government-issued ID
Step three: Get pre-approved
Before you start house shopping, it’s important to get a mortgage pre-approval letter from your lender. Many realtors will not work with homebuyers that have not completed this step. And in a competitive housing market, having a pre-approval letter can help demonstrate you’re a serious buyer.
When you get pre-approved, your lender will also let you know the loan amount you qualify to receive. However, you can always opt for a smaller loan amount if you’re uncomfortable with the lender’s offer. Knowing these numbers ahead of time can make the home buying process a lot easier to navigate.
Best VA Loans FAQs
How We Found the Best VA Loan Lenders
We chose the best VA loan lenders by comparing numerous features, benefits, and other factors such as:
- Reputation and experience: Not all lenders offer VA loans. We focused on finding lenders that not only have VA loans in their portfolio of services, but those who are known for having the experience needed to help veterans, servicemembers and military families utilize the benefits they’ve earned.
- Customer satisfaction: No lender has a perfect track record when it comes to customer reviews and satisfaction ratings. But the best VA loan lenders tend to receive more praise and awards than others.
During the course of our research, we relied on the following expert sources:
- U.S. Department of Veterans Affairs Housing Assistance Guide
- VA Home Loan Guaranty Buyer’s Guide
- Freddie Mac 2018 Homebuyer Survey
Summary of the Best VA Loan Lenders of 2023
- Best Online Lender: Rocket Mortgage
- Best for First-Time Homebuyers: Navy Federal Credit Union
- Best for Credit Challenges: New American Funding
- Best for Competitive Rates: PenFed Credit Union
- Best Loan Marketplace for Comparing Rates: LendingTree
- Best for Updated Rates Daily: USAA
- Best for Experience in VA Lending: Freedom Mortgage
Michelle Lambright Black is a nationally recognized credit expert with two decades of experience. Founder of CreditWriter.com, Michelle's work has been published thousands of times by FICO, Experian, Forbes, Bankrate, MarketWatch, Parents, U.S. News & World Report, and many more.