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7 Best VA Loan Lenders of 2023
By Susan Doktor MONEY RESEARCH COLLECTIVE
No down payment required
- No private mortgage insurance
- Competitive low interest rates
- Dedicated VA loan specialists
- Flexible credit score options
VA-Approved lender for a seamless process
- No lender origination fees
- Finance 100% with no down payment required
- Serving military families for over a century
- 75% of our team are affiliated with the military
Have a VA Loan? Get Cash Out for your Service
- Refi and get cash from your home’s equity
- Consolidate your debt and save money every month
- Use cash to renovate your home, pay for college, or…anything at all
- Established in 1990, we’re the #1 VA Lender in the US (source-Inside Mortgage Finance, Jan-Sept 2021)
30+ Years VA Loan Experience
- VA-Approved Lender serving Veterans in All 50 States
- 95% Five-Star Reviews on Trustpilot
- A+ With BBB, Equal Housing Lender
- Let Your VA Loans Benefit Open Doors for You
A VA loan is a mortgage designed to help military families and veterans achieve the goal of homeownership. VA loans offer numerous benefits versus non-VA loans, including a no down payment option 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 Lenders
- Best VA Mortgage Lenders Reviews
- Other Lenders We Considered
- VA Loan Guide
- VA Loan FAQs
- How We Found the Best VA Loan Lenders
- Summary of the Best VA Loan Lenders of 2023
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
We rounded up the top seven VA loan lenders and reviewed each one to help you find the best fit for your mortgage needs.
Best Online Lender: Rocket Mortgage
Rocket Mortgage, formerly known as a part of Quicken Loans, gets the nod for the best online lender for VA loans. The company’s user-friendly application process and positive customer service rating both played a big role in our decision.
The country’s largest mortgage lender since 2017, Rocket Mortgage was the first to offer consumers an online platform for mortgage loans. The online lender also has earned the designation from J.D. Power as the mortgage lender with the highest customer satisfaction in the U.S. from 2014 to 2021.
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.
- 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
Best for First-Time Homebuyers: Navy Federal Credit Union
Navy Federal Credit Union is our choice as the best VA loan lender for first-time homebuyers. The credit union earns this designation for several reasons, including the fact that it doesn’t impose a minimum credit score requirement on VA mortgage products.
Navy Federal is a top VA loan lender with the experience to help you take full advantage of the servicemember benefits to which you’re entitled. The lender also lets homebuyers relock their VA loan’s interest rate at no additional cost if mortgage rates go down prior to closing. And the Rate Match Guarantee promises that if you find a lower rate with another lender, Navy Federal will match it or give you $1,000.
Since 1933, Navy Federal Credit Union has served millions of member-owners with its financial products. 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 it offers. These include VA loans, streamline VA refinance loans (IRRRL), and the Military Choice loan (for those with no remaining VA loan entitlement).
- $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
Best for Credit Challenges: New American Funding
New American Funding earns the title of the VA loan lender that’s best for borrowers with lower credit scores. The privately-owned mortgage lender will allow eligible borrowers to take out a VA loan with a credit score as low as 580. By contrast, many lenders have credit score requirements of 620 and higher for VA loans, even though the VA itself doesn’t set a credit score minimum for the VA home loan program.
New American Funding also aims to help would-be borrowers by considering details like utility bills and rent payments in addition to traditional credit history if needed. In addition, the lender focuses on increasing homeownership in minority communities and is 44% ahead of the mortgage industry in lending to minority borrowers.
- 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
Best for Competitive Rates: PenFed Credit Union
PenFed Credit Union has a reputation for offering competitive VA loan rates to its members. On top of low rates, PenFed’s VA loan products feature no lender fees (e.g., origination fee, etc.) and lender credits of up to $2,500 for qualified borrowers. However, other costs like VA funding fees and optional discount points to pay down your interest rate may still apply to your loan.
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 valuable features such as no closing costs, no required appraisal, and no monthly Private Mortgage Insurance (PMI).
- 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
Best Loan Marketplace for Comparing Rates: LendingTree
LendingTree is the company we chose as the best loan marketplace for comparing interest rates on VA loans. LendingTree offers homebuyers a system to receive and review multiple loan offers by completing a single interest form.
The process 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. Finally, comparing loan offers through LendingTree doesn’t result in any hard credit inquiries that might temporarily lower your credit score.
- 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
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.
- Dedicated to serving the military community's needs
- Updated VA and conventional loan rates daily
- Comprehensive financial blog with a focus on the military community
- Mobile app for bill payment and other account management tasks
- Important information is only available to members, who must be validated military members or veterans.
- Minimum Credit Score
- Not stated
- Minimum Down Payment
- 0% for Qualified Veterans with Full Entitlement
- Loan Terms
- 10-, 15-, 20-, 30-year fixed
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 home purchase, IRRRL, and cash-out refinance loans available
- Focused on serving veterans and active service members
- A+ rated by the Better Business Bureau
- The nation's number one VA lender in 2021
- Doesn't offer home equity loans or home equity lines of credit (HELOCs)
- Doesn't publish updated VA loan rates daily
- Minimum Credit Score
- Not stated
- Minimum Down Payment
- As low as $0 for qualified borrowers
- Loan Terms
- 10-, 15-, 20-, 30-year fixed
Other lenders we considered:
Carrington Mortgage
Carrington Mortgage offers 15- and 30-year fixed rate VA mortgages. According to the VA, in 2022 the company ranked 47th for loan originations for a total of over $97 million in mortgage funding. Carrington Mortgage is considered a non-prime lender and offers a chance for borrowers with credit scores as low as 500 to be approved for a mortgage. However, we hesitated to name the company in our “best of” list because the company was the subject of two complaints filed with the Consumer Financial Protection Bureau in 2022, one of which was a class action suit that resulted in the mortgage company paying over $5 million in fines.
- Accepts lower credit scores
- Offers lower interest rates for VA IRRRL
- Does not offer adjustable rates
- Low customer review rating on BBB
Flagstar Bank
Flagstar Bank funded over 600 VA loans in 2022 — the 27th largest VA loan lender for the year. The main reason why the institution didn’t make our best of list is that it only offers a single VA loan option: a 30-year fixed rate mortgage. We favored companies that afforded vets more choices than that.
- Online application process
- Flexible qualification standards
- Only offers one loan term option
VA Loans 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 attractive 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 a 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 (see below) that you must satisfy to be eligible for any VA loan, including VA purchase loans, Interest Rate Reduction Refinance Loan (IRRRL), a VA cash-out refinance, and the Native American Direct Loan (NADL) program.
- No Private Mortgage Insurance: VA loans do not feature a private mortgage insurance (PMI) requirement. With conventional loans, by comparison, lenders will typically add PMI premiums onto your monthly loan costs unless you provide a 20% down payment.
- VA Funding Fee: A VA funding fee will apply to your loan unless you have a military service-related disability or other event that makes you eligible for a waiver. Either you, the seller of the property, or the lender will have to pay the VA funding fee in cash at the time of closing or it 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. There may be other upfront costs associated with VA loans, as well.
- 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 (aside from 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.
- Approved Home Purposes: You can use a VA loan to purchase a primary residence or a second primary residence. You can’t use a VA loan to purchase a vacation home, which is defined as a home you live in for less than two weeks per year. You can also use a VA loan to refinance your existing mortgage.
How to Qualify for a VA Loan
Qualifying for a VA loan can be more complicated than other loan types of mortgages. Not only will you need to satisfy a mortgage lender’s criteria, you’ll also need to make sure 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.
If you can satisfy the following requirements (among others), you may be eligible for a COE.
- You’re a Veteran, active duty service member, National Guard member, or Reserve member who meets the minimum service requirements.
- You did not receive a dishonorable discharge.
- You’re a qualified surviving spouse of an eligible Veteran or servicemember.
- If you’ve used a VA loan in the past, you’ve received an entitlement restoration from your state’s VA regional loan center.
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 still want to ensure that it’s comfortable loaning you money. 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 more lenient than those of other types of mortgages. Because the federal government backs a portion of the loan, the lender knows it will receive at least some form of repayment in the event a 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, income, or employment issues could still be deal breakers.
How to Apply for a VA Home Loan
1. Find a Lender
Once you have your COE, you can start the search for a VA-approved lender. Not all lenders offer VA loans. Meanwhile, some lenders specialize in this type of financing. It’s a good idea to research customer reviews and consult the Nationwide Mortgage Licensing System (NMLS) database to see if the lender you’re considering has been subject to any regulatory
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.
2. 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 in the loan process.
Some of the documentation you should have prepared includes:
- Certificate of Eligibility
- W-2 Forms (2 Years)
- Tax Returns (2 Years)
- Most Recent Pay Stubs
- Bank Statements (2 Months)
- Government-Issued ID
- And More
3. 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 your financing in order is more essential than ever if you want sellers to take you seriously. Pre-approval involves a lender performing a hard credit check, which is the beginning of the underwriting process.
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.
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 who are also known for having the experience needed to help veterans, service members, 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
Taking out a VA loan can be a terrific personal finance strategy—one that every eligible veteran or active service member should consider. If you’re the spouse of a deceased veteran, you may also be eligible for VA loans. Contact the VA directly. A knowledgeable real estate agent can also help guide you through the process.
- 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
