Shopping for a new home is an exciting yet often stressful process for anyone. However, as a veteran or active-duty service member, you have a distinct advantage when it comes to homeownership – the VA loan. Finding the best VA home mortgage lenders is important so you get the best deal. These loans, guaranteed by the Department of Veterans Affairs, offer incredibly favorable terms, potentially saving you thousands of dollars over the life of your loan. One of the most alluring features of VA loans? Zero down payment. That’s right, you can potentially skip the daunting task of saving up for a large down payment, which holds many aspiring homeowners back. Plus, VA loans typically have more lenient credit requirements than conventional ones. But with so many lenders offering VA loans, where do you start? Picking the right lender can make a huge difference.
That’s where this post comes in. We’re breaking down the best VA home mortgage lenders of 2024 to help you explore your options. This way, you’ll be armed with the information you need to make a well-informed decision. You’ll be on the path to owning your dream home sooner than you think.
All you need to know about VA mortgages here!
Top 10 VA Home Mortgage Lenders for 2024
Finding the right lender for a VA loan is essential. Here’s a look at 10 VA lenders standing out in 2024. Each brings something unique to the table, catering to various borrower needs. I encourage you to do your homework and read reviews for each company. Only then will you feel truly comfortable deciding who is best for you?
New American Funding
New American Funding offers various mortgage options, including VA loans. Known for flexibility, they cater to individuals with credit scores starting as low as 580, a lower threshold than many lenders offer. This makes them a good option for veterans who may have experienced credit challenges.
Rocket Mortgage
Rocket Mortgage is an online mortgage giant with a user-friendly digital platform. This makes the loan process easy and accessible for veterans. Plus, with credit scores as low as 580 considered, Rocket Mortgage also caters to those who might need a little more flexibility in their credit score history.
Navy Federal Credit Union
The Navy Federal Credit Union, founded in 1933, served Navy personnel. Today, it’s the largest credit union in the US, open to active duty, retired, and veteran members of any branch. It even extends its services to families. With a solid reputation and low fees, it’s consistently recognized for exceptional customer service. It offers many financial products and loan options, including VA loans. Remember, you must become a member before applying for their loans.
Veterans United Home Loans
This lender earns its name with a dedication to serving the military community. Veterans United boasts a network of loan specialists and resources dedicated to helping veterans get the best possible deal. This is incredibly helpful as understanding the ins and outs of VA loans is important. They even have a team composed of former service members to answer all your questions.
PenFed Credit Union
Known for competitive rates, PenFed Credit Union could help save you money on interest payments over your loan term. They’re very popular because no down payment options are available on VA loans. Like many credit unions, PenFed requires membership, but this can easily be attained by opening a savings account with just $5. While rates are appealing, PenFed’s lending criteria tend to be more stringent compared to other lenders on this list.
LoanDepot
LoanDepot is one of the biggest mortgage lenders around. It employs over 11,000 people in over 200 offices. It boasts a diverse portfolio of loan products, including VA loans with competitive rates and a wide range of terms, to cater to different borrower needs. While its digital presence makes the application and pre-approval process straightforward, mixed customer reviews show that its customer service isn’t consistently satisfactory for all borrowers.
Freedom Mortgage
Founded in 1990, Freedom Mortgage has grown quickly, now a leading VA lender. Their focus? VA Interest Rate Reduction Refinance Loans, better known as IRRRLs. This specialization and commitment to streamlining processes could make them a great option for refinancing your existing VA loan. However, borrowers seeking a purchase loan might find more suitable options elsewhere.
NBKC Bank
NBKC Bank offers a digital experience while emphasizing personalized customer service. While not as big as other lenders, NBKC Bank focuses on simplicity and transparent communication, appealing to many veterans looking for a personal touch in their financial journeys. Plus, with their transparent online portal and commitment to helping you understand all aspects of the loan, you might enjoy the ease of use they strive for.
Carrington Mortgage
Though specializing in conventional and government-backed loans, Carrington Mortgage holds a special significance for the veteran community. According to Veterans Affairs data, Carrington originated 14.54% of all VA loans in the US during 2023, which is almost double that of the second-place lender. Although Carrington focuses on accessibility and serving borrowers with diverse credit backgrounds, some criticisms of its customer service and online tools do exist. While you might enjoy Carrington’s personalized guidance, remember that in November 2022, the Consumer Financial Protection Bureau ordered them to pay a hefty $5.25 million in fines for purported violations of borrower rights under the CARES Act.
Fairway Independent Mortgage Corporation
Rounding out our top 10 is Fairway Independent Mortgage Corporation. With offices in 48 states, they stand out by providing a traditional, in-person mortgage experience for borrowers who might find comfort in meeting a loan officer face-to-face. While their expansive reach could be beneficial if you value face-to-face interaction, carefully weigh their potentially higher fees compared to competitors. You might enjoy the blend of human interaction and efficient loan processing they bring to the table.
Additional Tips for Choosing a VA Lender
Picking the best lender requires time and research. Some additional considerations might help you feel confident you’re choosing well.
Shop Around for the Best Rates
Even a slight difference in interest rate can lead to large savings over the life of your loan. That’s why it pays to shop around. Request quotes and thoroughly compare interest rates, fees, loan terms, and other crucial features before deciding which option best aligns with your financial needs and goals. Remember to read those online reviews as they often shed light on things not apparent from the information available on lender websites.
Read Lender Reviews
Get the inside scoop by hearing what other borrowers have to say about a potential lender. Check online reviews to gain insights into the experiences of fellow veterans. Consider the good, the bad, and even the neutral reviews. While experiences can vary, reading reviews is helpful, potentially alerting you to red flags you might not find anywhere else. Taylor Getler, a personal finance expert with NerdWallet, explains, “Online reviews provide a glimpse into other borrowers’ experiences, showcasing both positives and potential challenges they’ve encountered. These insights offer crucial information that goes beyond basic data.”
Review Loan Terms and Fees Carefully
Dig into the nitty gritty. In your loan estimates, take the time to carefully understand loan terms and fees from different lenders. Consider origination fees, closing costs, discount points, prepayment penalties (if applicable), and lender credits, as these affect your overall costs.
Pay close attention to the VA Funding Fee (usually a percentage of the loan), as this helps cover program operating costs and ensures its viability for future veterans. Make sure to read all the fine print.
Review Your Credit Report
Reviewing your credit report helps you prepare for a loan application and a meeting with a potential lender. You should also get rate quotes from lenders to ensure your credit is as strong as possible.
You can find your credit reports from the three major credit bureaus via AnnualCreditReport.com. This allows you to dispute errors and helps you understand how a potential lender might view your credit profile.
Consider Credit Unions
Many credit unions offer VA loans with meager interest rates and low fees because they’re nonprofit institutions with a primary mission to serve their members’ financial needs, not shareholder profits. If you don’t yet belong to a credit union, this might be an especially good opportunity.
Compare, Compare, Compare
According to research published by Freddie Mac, comparing mortgage quotes from various lenders could lead to significant savings. Borrowers getting quotes from at least two lenders can save between $600 and $1,200 annually. That’s some pretty sweet potential for savings just by doing some research. However, lender guidelines, credit scoring policies, underwriting practices, and offered interest rates vary.
It’s essential to be proactive. Contacting each lender will allow you to compare quotes tailored to your situation, giving you accurate information.
Think Beyond The Top 10 VA Lenders
This list offers a fantastic place to start exploring. But it’s good to branch out to ensure you’re exploring all your options. Smaller mortgage lenders and regional banks can often offer better terms, mainly if they specialize in serving a specific area. So, branch out and talk to more people and lenders. Explore some of the lenders I’ve covered here.