VA Loan Lenders with the Best Rates

VA Loan Lenders with the Best Rates

Through an independent review process, we recommend the best products, and advertisers have no influence over our recommendations. If you visit one of the partners we recommend, we may be compensated. The Department of Veterans Affairs backs VA loans, which are a type of mortgage loan (VA). Loans are guaranteed by the VA and issued by private banks, credit unions, and other lenders through the VA-backed loan program. This enables military service members and their families to purchase a home with fewer qualifications than traditional mortgages and, in many cases, no down payment. Costs, the application process, customer service, and online loan management experience are all important factors to consider when choosing a VA loan. In all or most of these categories, the best VA loan lenders will be competitive.

Veteran's United Home Loans has the best overall rating

Veterans United Home Loans is a company that focuses solely on VA loans. That's one of the reasons it came in first on our list. In 2020 and 2021, Veterans United was the third-largest originator of VA loans (the largest in 2019). It has a good reputation and offers competitive interest rates. However, no consumer mobile app is available, which may irritate some users. If your credit score is less than 620, you may be eligible for Veterans United's credit building program, but you may not be approved for a loan.

The Best Online Creditor, Rocket Mortgage

Why Did We Pick It? Quicken Loans, now Rocket Mortgage, was the second-largest VA loan originator in 2020 and 2021, and the largest mortgage originator in the United States in 2019. 21 It has a number of J.D. Power awards, including seven years as the top mortgage servicer in J.D. Power's U.S. Primary Mortgage Servicer Satisfaction Study. Rocket Mortgage, the company's online mortgage application platform, is one of the easiest and fastest to use. Rocket Mortgage earns our top spot as the best online VA loan lender due to the efficiency of its online lending platform, as well as competitive loan rates and excellent customer service. For VA loans, Rocket requires a minimum credit score of 620.

The Best BankUSAA

Why Did We Pick It? USAA is a bank dedicated solely to serving military personnel, veterans, and their families. Due to competitive rates and excellent customer service, USAA receives high marks for many of its products (particularly insurance). In J.D. Power's studies of insurance and mortgage lenders, it outperformed the top-ranked companies in terms of overall customer satisfaction. 45 It also has an online VA loan eligibility tool that can help you figure out if you qualify and how to apply. USAA's VA loans are created through a simple online process that includes an online preapproval application. In 2020, USAA ranked fifth among VA loan originators and tenth in 2021.

Best Credit Union Navy Federal Credit Union

Why Did We Pick It? Members of any branch of the US military or Department of Defense personnel can join Navy Federal Credit Union, despite the name. In a J.D. Power study, Navy Federal received high marks for customer satisfaction and offered VA loans with the lowest APRs on our list. 4 It also has a partnership with RealtyPlus, which can assist you in finding a real estate agent in your area. Navy Federal Credit Union may be a good fit for your entire financial picture, including checking, savings, and credit cards. Navy Federal was the sixth-largest VA home loan originator in 2020, and the ninth-largest in 2021.

Best for Fair Credit Freedom Mortgage

Why did we pick it? Freedom Mortgage was the largest originator of VA loans in 2020 and 2021, according to VA data. It focuses primarily on VA loans and is more likely than other lenders on our list to work with applicants with lower credit scores (as low as 600). Freedom Mortgage has a low-rate guarantee (for purchase loans) and an automated text alert system when rates drop or the value of your home rises, which is nice given that it doesn't publish rates on its website. It also provides access to a variety of useful resources, such as mortgage calculators and borrower education materials, to anyone who visits the website. Compare providers
Best Overall 620
Rocket Mortgage Best Online Lender 620
USAA Best Bank 640
Navy Federal Credit Union Best Credit Union Not disclosed
Freedom Mortgage Best for Fair Credit 600

The Final Word

Because it specializes in VA home loans and has relatively low-interest rates, we chose Veterans United Home Loans as of the best overall VA mortgage lender. Veterans United is one of the country's largest VA loan lenders, and if your credit isn't up to par, it offers a credit consultation program to help you qualify in the future.

Most Commonly Asked Questions

What Is a Veterans Administration Loan?

Although VA loans are issued by private lenders, the VA guarantees a portion of the loan. This allows veterans to qualify for loans with better terms and fewer requirements than traditional mortgages. Qualifying applicants may be able to get a VA-backed loan with no down payment and no private mortgage insurance (PMI), which can save money and remove obstacles that would otherwise prevent some veterans from purchasing a home.

Is it true that VA loans are only available to veterans?

You must meet length-of-service requirements and obtain a valid Certificate of Eligibility to be eligible for a VA loan (COE). Spouses or dependents may be eligible in some cases. Depending on the nature of your service, the application process for a COE varies. To obtain a COE, veterans will need a copy of their discharge or separation papers (DD214).

Is a Down Payment Needed for a VA Loan?

The ability to borrow with no money down is one of the most appealing features of a VA loan. This could allow you to move in sooner or afford a home that you couldn't afford with a traditional mortgage.

How much can you borrow with a VA loan?

There are no longer any loan limits on VA mortgages for qualified veterans with full entitlements. If you're eligible, the US Department of Veterans Affairs will guarantee any loan amount you take out. However, just because the VA has no maximum loan amount doesn't  mean you can borrow as much as you want. Your county may have a maximum loan amount, and you must still qualify with a lender. To apply for a VA home loan after receiving your Certificate of Eligibility, you must go through a private lender, who will still look at your finances, credit history, and other factors (much like a typical loan application). The amount you can borrow from each lender is determined by how well you meet their requirements. Borrowers with good credit and high incomes can typically borrow more money than those with bad credit and low incomes.

How Long Does a VA Home Loan Take to Close?

The length of time it takes to close a VA home loan is determined by the lender. The majority of lenders will close in 50 days or less, with some closing in three weeks or less. Learn about the costs of a VA home loan closing so you're not surprised when it's time to pay off your loan.

How Did We Choose the Best VA Loan Providers?

We compared the top banks, credit unions, and online VA lenders by volume to find the best VA lenders. Interest rates and fees, customer service reviews, the application process (including online and mobile application platforms), minimum recommended credit scores, and category-specific features were the most important factors to consider.  

Final verdict

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