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8 Best VA Loan Lenders of 2023
By Susan Doktor 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
When you’ve sacrificed for your nation, the least the country can do is financially support you on your homeownership journey. That’s where VA loans come in. As a veteran or military service member, you’re eligible for VA home loans that offer several advantages over conventional mortgages. These include 100% financing, no private mortgage insurance (PMI), low-interest rates, and lenient credit requirements.
With so many VA loan private lenders to choose from, it can be challenging to narrow down your options. We’ve done the legwork for you and compiled a list of the 8 best VA loan lenders of 2023.
Our Top Picks for Best VA Loan Lenders
- Navy Federal – Best Overall
- New American Funding – Best for Poor Credit
- Rocket Mortgage – Best for Online Service
- Fairway Independent Mortgage – Best for In-Person Service
- LendingTree – Best for Comparison Shopping
- Veterans United – Best for Loan Variety
- PenFed – Best for Budget-Conscious Borrowers
- USAA – Best for First-Time Homebuyers
Best VA Loan Lenders Reviews
No two prospective homeowners are alike. So rather than compile a list of companies that are pretty good at a lot of things, we focused our list of the top VA loan lenders on banks and other financial institution that are truly outstanding for particular types of customers.
Best Overall: Navy Federal
Navy Federal, a non-profit credit union, gets our nod as the best overall VA lender because of its financial incentives, low-interest rates, and comprehensive mortgage program.
If you purchase a home through Navy Federal’s RealtyPlus program, you’llwork with an assigned real estate agent throughout your homebuying journey. You can also receive $400 to $9,000 in cash-back rewards. Navy Federal also allows you to relock your VA loan’s interest rate if it goes down before the closing date — at no extra cost. Plus, if you find a better rate with another lender, Navy Federal Credit Union offers to match it or give you $1,000.
Another standout feature of Navy Federal is its comprehensive VA loan program. Instead of only providing financing, like many of its competitors, the credit union also offers title servicing, real estate agent support, and more. By going above and beyond, Navy Federal makes the homebuying process streamlined and hassle-free for borrowers.
Interested in learning more? Check out this in-depth Navy Federal review that shares everything you need to know about their products and services.
- Sellers can cover up to 4% of the closing costs
- $400 to $9,000 in cash-back rewards with the RealtyPlus program
- Competitive VA loan rates
- Freedom Lock float-down option
- A limited number of physical locations
- You can't view personalized rates unless you're a member
Best for Poor Credit: New American Funding
Unlike many competitors who set their credit score requirements at 620 or above, New American Funding’s minimum score of 580 makes it our top pick for the best VA lender for people with poor credit.
The company considers non-traditional credit histories, such as rent payments and utility bills, to evaluate your loan application holistically. And what further sets New Amerian Funding apart from competitors is its dedication to increasing homeownership in underserved communities. In 2021, more than 30% of the company’s purchase loans went to minority borrowers — significantly higher than the industry average.
If you’re looking for a lender who will work with you despite your less-than-ideal credit score, New American Funding might be your best bet. But before committing to them, take a look at this New American Funding review to decide whether they’re the right fit for you.
- Lower credit score requirement than competitors
- Considers non-traditional credit history
- Focuses on serving minority communities
- Not available in Hawaii and New York
- Must agree to receive phone calls and email to get a rate quote
Best for Online Service: Rocket Mortgage
Rocket Mortgage has been rated the best mortgage lender for online service by various third-party review sites, and we think this recognition is well-deserved. The company’s mortgage application process is seamless and straightforward, allowing you to submit all your paperwork online without setting foot in a brick-and-mortar location.
Rocket Mortgage also provides various tools on its website and mobile app to help you track your application process and communicate with Rocket representatives should any problems arise. Customer support is available 24/7, so you can always get help when you need it. If you think you might benefit from the company’s services, check out this detailed Rocket Mortgage review for more information.
- Offers a wide range of mortgage lending options
- User-friendly mobile app and website design
- 24/7 customer support
- No home equity loans or home equity lines of credit
- Only has physical locations in 17 states
Best for In-Person Service: Fairway Independent Mortgage
Though a fully-online mortgage application process is convenient, it may not be for everyone. If you like to ask a lot of questions face-to-face before making a decision, having that in-person interaction can be invaluable. We chose Fairway Independent Mortgage as the best lender for in-person service because they have physical locations in every state except West Virginia and Alaska. No matter where you are in the country, you’re likely within driving distance of a Fairway Independent Mortgage office.
Apart from its convenient locations, Fairway also offers a wide range of government-backed mortgage loan products to cater to every borrower. So if you aren’t able to qualify for VA loans, you still have many other options to explore.
- Various term-length options
- Branches in all but two states (Alaska and West Virginia)
- Allows you to apply with alternative credit data if you have a thin credit file
- Limited customer service hours
- No mortgage rate information on the website
Best for Comparison Shopping: LendingTree
Comparing rates from different VA loan providers can be time-confusing and frustrating. If you don’t have the time and energy to scour the internet for the best lender, we recommend using LendingTree to help you comparison-shop.
LendingTree, an online lending marketplace, stands out from its competition by providing borrowers with access to its network of more than 500 partnered lenders. You can prequalify with multiple lenders at once without damaging your credit score. The company also has a mobile app you can download to help you find the best deals while on the go.
Keep in mind that LendingTree doesn’t originate or service VA loans themselves, which means they might not provide the same level of customer support as other top picks on our list. So before taking the plunge and working with the company, read this LendingTree review to help you make the most informed decision.
- Allows you to prequalify for multiple lenders at the same time
- Free credit monitoring and budget tracking tools on the app
- The application process is fully online
- Not much information about rates and hidden costs
- Some of its partnered lenders may charge prepayment penalties
- May share your personal information with multiple lenders
Best for Loan Variety: Veterans United
Veterans United is a household name in the VA loan industry not only because it’s the largest lender by loan volume, but also because of its wide variety of veteran-focused loan options. Apart from the standard products that most competitors provide (purchase, cash-out refinance, and IRRRL), Veterans United also offers less common VA loan options such as jumbo VA loans and energy-efficient mortgages.
Jumbo VA loans help borrowers finance homes that cost more than the conforming loan limit ($647,200 as of 2022). And energy-efficient mortgages can be a great option for those who want to add energy-saving improvements to their property.
If you’re unsure whether you qualify for a VA loan, Veterans United has a questionnaire on its website to help determine your eligibility.
- Specializes in VA loans
- You can apply online, over the phone, or at a branch
- Offers unique veteran-focused loan options
- Provides online rate quotes without credit checks
- No home equity loans or HELOCs
- Not much information on non-VA loans
Best for Budget-Conscious Borrowers: PenFed Credit Union
For budget-conscious borrowers, lender fees — which usually amount to 1-2% of the loan amount — can be a real stumbling block. But unlike other lenders, PenFed Credit Union doesn’t charge lender fees. For potential homeowners, this perk translates to substantial savings — especially on larger loans. Additionally, PenFed offers up to $2,500 in lender credits to help alleviate financial pressure for cash-strapped buyers.
The credit union will also give you $500 in rewards every time you make 60 consecutive on-time payments. So if you’re looking for a budget-friendly way to finance your home, PenFed is worth considering.
Don’t forget to check out this PenFed review for more information on their VA mortgage products and services.
- Rewards for making mortgage payments on time
- Up to $2,500 in lender credits
- No prepayment penalties
- Low rates compared to other lenders
- They don't consider non-traditional credit data like rent payments
- Lender credits aren't available for refinancing mortgages
Best for First-Time Homebuyers: USAA
If you’re using your VA loan benefits to purchase your first home, you’ll want to work with a VA lender that can walk you through the process. We think USAA is hard to beat when it comes to lenders that cater to first-time homebuyers.
They offer excellent educational resources and blog posts on their website to help you navigate your home-buying journey. They’ve also created a mortgage calculator to estimate how much home you can afford.
Aside from helping you get the financing you need, USAA also offers a variety of home insurance products to keep your property safe after you move in. Some of these include personal property, windstorm, and flood insurance. The company provides a 10% discount if you bundle your homeowner and auto insurance policy.
- Plenty of educational tools on the website
- Insurance products are also available
- Experience assisting first-time homebuyers
- Requires you to have a USAA membership
- No home equity loans or HELOCs
- Limited physical branches
Other companies we considered
Here are some companies we initially considered but decided not to include in our list of top picks. Though they didn’t meet our criteria for the best VA mortgage lenders, we think they’re still worth looking into.
- A low minimum credit score of 550
- Straightforward online loan application process
- More than 100 brick-and-mortar locations in the U.S.
- Has various complaints in the CFPB database
- No mortgage rate information on its website
- No HELOCs or home equity loans
- Specializes in VA loans
- Plenty of educational resources and tools
- Higher credit score requirements than competitors
- No conventional home loans are available
- Not much information about its mortgage rates
- Wide variety of mortgage products in addition to VA loans
- A low credit score requirement of 580
- Offers downpayment assistance programs
- Available in fewer than 30 U.S. states
- Has a high number of customer complaints with the CFPB
VA Loan Lenders Guide
With favorable terms and little to no down payment upfront, VA loans have helped numerous veterans, military members, and their families realize the dream of homeownership. If you’re interested in purchasing a property using your VA loan benefits, we’ve put together a quick guide to help you find the best lender and get the financing you need.
Main Things to Know Before Getting a VA Loan
- You need a VA appraisal: Before applying for a VA loan, you must have an independent VA appraiser assess your property’s value and inspect its condition.
- It’s reusable: Once you’ve paid off your previous VA loan and sold your property, you can reuse your VA loan benefits (provided that you meet the eligibility requirements)
- You need a Certificate of Eligibility: A Certificate of Eligibility (COE) is a document issued by the Department of Veterans Affairs that verifies your eligibility for the loan program. You can request a COE through your lender or by mail once you fill out the VA Form 26-1880.
- Loans must be used for your primary residence: Borrowers must use VA loans for the purchase of their primary residence, not for investment properties or vacation homes.
- It’s not issued by the VA: VA loans are not issued by the U.S. Department of Veterans Affairs. Instead, they’re issued by private lenders like banks and credit unions and backed by the VA.
How Much Do VA Loans Cost?
Though VA loans typically require little to no down payment, closing costs such as VA funding fees can still add up.
The VA funding fee is a one-time payment to the Department of Veterans Affairs to help support the home loan program. This fee can vary depending with the size of your down payment and the number of times you’ve used your VA loan benefits.
Here’s an example: Let’s say you’re using your VA loan benefits for the first time and put zero percent down. Your VA funding fee will be 2.3% of the total loan amount in this case. But if you’re a subsequent borrower, you’ll pay 3.6%. Also, the higher your down payment amount, the lower your VA funding fee is. First-time borrowers who put down 5% or more only have to pay 1.65%, and those who put down more than 10% unlock an even lower funding fee of 1.4%.
Note that the VA funding fee is only one of the many closing costs associated with homeownership. Other expenses include appraisal fees, title insurance, home inspection fees, loan origination fees, etc. So expect to shell out anywhere from 3% to 5% of your total loan to cover those costs.
Who Qualifies for a VA Loan?
To qualify for a VA loan, you must meet one of the requirements below:
- Have served at least 90 consecutive days of active service during times of war
- Have served at least 181 consecutive days of active service during times of peace
- Are currently on active duty
- Are the spouse of a service member who passed away while on duty or because of a service-related disability
- Served at least six years in the National Guard or Reserves, or served at least 90 days of active-duty service under Title 32 orders
Learn more about VA eligibility requirements on the U.S. Department of Veterans Affairs’s website.
What Is the Best Way to Find a Lender for a VA Loan?
The best way to find a lender for a VA loan is to do your homework and research potential candidates. You can start by going through our list of top picks. Once you’ve found a few lenders that look promising, get preapproved so you have an idea of what you can afford.
After that, it’s time to start the nitty-gritty process of comparing rates and terms. Comparison shopping is undoubtedly one of the most effective ways to score the best deal on a VA loan. So take your time, ask lots of questions, and don’t be afraid to walk away if you’re not getting the terms you want.
Also, it’s always a good idea to ask around for recommendations. Talk to friends, family, and other veterans who have used VA loans and see who they would recommend.
VA Loan Lenders FAQ
Can a veteran get a VA loan with bad credit?
Yes, it's possible to land a VA loan with poor credit. However, even though the Department of Veterans Affairs hasn't set a minimum credit score requirement for VA loans, mortgage lenders can still set their own credit score minimum. This minimum score can vary from lender to lender.
For some lenders, a FICO score of 580 or above is acceptable. For others, you'll need a score of at least 620. But generally, a VA loan's credit score requirement is much more lenient than a traditional home loan.
How long does it take to get a VA loan?
According to Veterans United, the average time to close a VA loan is around 40 to 50 days. Of course, this timeline can differ because everyone's homebuying experience is different. Some factors that can affect the closing time include the type of home you're looking for (new property vs. existing home that requires repairs), whether you've been preapproved for a loan, and how long your VA appraisal process takes.
What are the limits of a VA loan?
As of January 1, 2020, there are no longer any limits on VA loans over $144,000 for eligible service members, survivors, or veterans with full entitlement.
To have full entitlement, you must meet at least one of the following requirements:
- You haven't used any of your home loan benefits
- You've paid off your previous VA loan completely and sold the property
- You already used your home loan benefit but had a foreclosure or a short sale and have repaid the outstanding mortgage debt in full.
However, having full entitlement doesn't mean you're guaranteed a VA loan of any size. It's up to your lender to determine the loan amount you can afford based on your credit score, income, assets, and other factors.
How We Found the Best VA Loan Lenders
We set out to find the best VA loan lenders by first considering affordability. We wanted to ensure potential borrowers could get a loan without going over budget or paying exorbitantly high interest rates. Next, we prioritized lenders who specialize in VA loans and have extensive experience working with veterans and military members. Finally, we looked at customer satisfaction ratings and reviews to help us weed out the bad apples. This way, we can make sure our readers have a positive experience with the lenders we recommend.
Summary of the Best VA Loan Lenders of 2023
- Navy Federal – Best Overall
- New American Funding – Best for Poor Credit
- Rocket Mortgage – Best for Online Service
- Fairway Independent Mortgage – Best for In-Person Service
- LendingTree – Best for Comparison Shopping
- Veterans United – Best for Loan Variety
- PenFed – Best for Budget-Conscious Borrowers
- USAA – Best for First-Time Homebuyers
