Are you a veteran or active-duty military looking to purchase a home? One of the most significant benefits of your service is the opportunity to take advantage of VA loans. VA loans offer competitive rates, low down payments, and no mortgage insurance requirements, making them an excellent option for those who qualify.
But with so many lenders out there, how do you know which one to choose? In this article, we’ll take a deep dive into the best VA loan lenders in the market today, as well as answer some of the most frequently asked questions about VA loans. Let’s get started!
The Importance of Choosing the Right VA Loan Lender
Choosing the right lender for your VA loan is essential. A good lender will not only offer you a competitive interest rate but also guide you through the lending process and ensure that you fully understand the terms and conditions of your loan. On the other hand, a bad lender may cause delays, deny your application, or charge you excessive fees that could cost you thousands of dollars in the long run.
That’s why it’s crucial to do your research and choose a lender that has a track record of working with veterans and providing excellent customer service. In the following sections, we’ll introduce you to some of the best VA loan lenders in the market today.
Top VA Loan Lenders in the Market Today
Lender |
Loan Types |
Minimum Credit Score |
Highlights |
|---|---|---|---|
Quicken Loans |
Fixed-rate, adjustable-rate, VA jumbo loans |
620 |
Fast online application, excellent customer service, competitive rates |
USAA |
Fixed-rate, adjustable-rate, VA jumbo loans |
620 |
Exclusive to military members and their families, no application fee, specialized support for military homebuyers |
Navy Federal Credit Union |
Fixed-rate, adjustable-rate, VA jumbo loans |
580 (580-619 requires a down payment) |
Exclusive to military members and their families, no down payment required, no PMI requirements |
Veterans United Home Loans |
Fixed-rate, adjustable-rate, VA jumbo loans |
No minimum credit score requirement, but most borrowers have a score of at least 620 |
Specialized in VA loans, dedicated loan team, online application process |
PenFed Credit Union |
Fixed-rate, adjustable-rate, VA jumbo loans |
680 |
No down payment required, no PMI requirements, competitive rates |
Quicken Loans
When it comes to VA loans, Quicken Loans is one of the most reputable and trusted lenders in the market today. With a quick and easy online application process, competitive rates, and excellent customer service, Quicken Loans is an excellent choice for those looking to get pre-approved for a VA loan quickly.
One of the standout features of Quicken Loans is its Rocket Mortgage platform, which allows borrowers to complete the entire mortgage application process online, from pre-approval to closing. This can save borrowers a lot of time and hassle compared to traditional lenders that may require multiple in-person meetings.
In addition to VA loans, Quicken Loans also offers conventional, FHA, and jumbo loans, making it a one-stop-shop for all your mortgage needs.
USAA
USAA is another lender that is exclusively available to military members and their families. USAA offers a wide range of VA loan products, including fixed-rate, adjustable-rate, and VA jumbo loans.
One of the standout features of USAA is its specialized support for military homebuyers. USAA’s team of loan officers has extensive knowledge of the unique challenges that military homebuyers face, such as frequent relocations and deployments. This can make the lending process smoother and more stress-free for military buyers.
Overall, USAA is an excellent choice for military homebuyers looking for personalized support and competitive rates.
Navy Federal Credit Union is the largest credit union in the country, with over 10 million members. Navy Federal Credit Union is exclusively available to military members and their families and offers a wide range of VA loan products.
One of the standout features of Navy Federal Credit Union is its no-down-payment requirement for VA loans. This can make it easier for military buyers to purchase a home, even if they don’t have a large down payment saved up.
In addition to VA loans, Navy Federal Credit Union also offers conventional, FHA, and jumbo loans, making it a one-stop-shop for all your mortgage needs.
Veterans United Home Loans
As its name suggests, Veterans United Home Loans specializes in VA loans and has a dedicated loan team that understands the unique needs of military buyers. Veterans United Home Loans also has an online application process, making it easy for borrowers to get pre-approved for a VA loan quickly.
In addition to VA loans, Veterans United Home Loans also offers conventional, FHA, and jumbo loans, making it a one-stop-shop for all your mortgage needs.
PenFed Credit Union
PenFed Credit Union is another lender that offers a wide range of VA loan products, including fixed-rate, adjustable-rate, and VA jumbo loans. One of the standout features of PenFed Credit Union is its competitive rates, which can save borrowers thousands of dollars over the life of their loan.
PenFed Credit Union also has no down payment requirements for VA loans and no PMI requirements, making it a great choice for military buyers who want to keep their monthly payments as low as possible.
FAQs about VA Loans
1. What is a VA loan?
A VA loan is a mortgage loan that is guaranteed by the United States Department of Veterans Affairs (VA). VA loans are designed to help veterans, active-duty military members, and eligible surviving spouses become homeowners. VA loans offer competitive rates, low down payments, and no mortgage insurance requirements.
2. Who is eligible for a VA loan?
Eligibility for a VA loan depends on a variety of factors, including your length of service, military status, and discharge characterization. Generally, veterans who served on active duty for at least 90 consecutive days during wartime, or 181 days during peacetime, are eligible for a VA loan.
3. What are the benefits of a VA loan?
VA loans offer a variety of benefits for eligible veterans and military members, including:
- No down payment required (in most cases)
- No mortgage insurance requirements
- Competitive interest rates
- Flexible qualification requirements
- Assumable loans
- Ability to refinance without a new appraisal or credit check
4. Can I use a VA loan to refinance my existing mortgage?
Yes, you can use a VA loan to refinance your existing mortgage. The VA offers two refinance options for eligible borrowers: the VA streamline refinance (also known as the Interest Rate Reduction Refinance Loan or IRRRL) and the VA cash-out refinance.
5. What is the VA funding fee?
The VA funding fee is a one-time fee that is required for all VA loans. The fee is calculated as a percentage of the loan amount and varies depending on the type of loan, the amount of the down payment (if any), and whether or not the borrower has used their VA loan benefit before. The funding fee helps offset the cost of the VA loan program to taxpayers.
6. How much can I borrow with a VA loan?
The amount you can borrow with a VA loan depends on a variety of factors, including your income, credit score, and the appraised value of the property. In most cases, the maximum amount you can borrow with a VA loan is the conforming loan limit for your county, which is $548,250 in most areas of the country in 2021.
7. Can I use a VA loan to buy a second home or investment property?
No, VA loans are only available for primary residences. You cannot use a VA loan to purchase a second home or investment property.
8. Can I get a VA loan with bad credit?
While the VA does not have a minimum credit score requirement, most lenders do. In general, you will need a credit score of at least 620 to qualify for a VA loan. However, some lenders may be willing to work with you even if you have bad credit, provided you can demonstrate a history of responsible financial behavior.
9. How long does the VA loan application process take?
The length of the VA loan application process can vary depending on a variety of factors, including the lender you choose, the complexity of your application, and how quickly you provide the required documentation. In general, you should expect the VA loan application process to take anywhere from 30 to 45 days.
10. What happens if I default on my VA loan?
If you default on your VA loan, the VA may take steps to recover the amount of the loan, including foreclosing on your property. However, the VA will first try to work with you to find a solution that allows you to keep your home, such as a repayment plan or loan modification.
11. Do I have to pay property taxes and insurance on my VA loan?
Yes, as with any mortgage loan, you are responsible for paying property taxes and insurance on your VA loan. Your lender may require you to set up an escrow account to ensure that these payments are made on time.
12. Can I get a VA loan if I’ve already used my VA loan benefit before?
Yes, you can get a VA loan if you’ve already used your VA loan benefit before. However, you may be subject to certain restrictions, such as having to make a down payment or pay a higher funding fee.
13. Can I pay off my VA loan early?
Yes, you can pay off your VA loan early without incurring any prepayment penalties. This can help you save money on interest over the life of your loan.
Conclusion
Choosing the right VA loan lender is essential to ensure that you get the best rates and terms possible. In this article, we introduced you to some of the best VA loan lenders in the market today, including Quicken Loans, USAA, Navy Federal Credit Union, Veterans United Home Loans, and PenFed Credit Union.
If you’re a veteran or active-duty military member looking to purchase a home, we encourage you to do your research and find a lender that meets your needs. By taking the time to choose the right lender, you can save yourself time, money, and stress in the long run.
Closing Disclaimer
This article is intended for informational purposes only and should not be construed as legal or financial advice. The information in this article is accurate as of the date of publication but may be subject to change. Consult with a licensed professional before making any decisions regarding your VA loan.