Introduction
Welcome to our guide on how to find the best VA loan lender for your needs. If you are a veteran, an active duty service member, or a surviving spouse, you may qualify for a VA loan. These loans are backed by the Department of Veterans Affairs and offer benefits like no down payment and lower interest rates than conventional mortgages. However, to get the most out of your VA loan, you need to find the right lender. In this article, we will share with you the essential tips for choosing the best VA loan lender.
What is a VA Loan?
As mentioned earlier, VA loans are mortgages designed to help veterans, active duty service members, and surviving spouses buy or refinance a home. This type of loan is backed by the Department of Veterans Affairs and does not require a down payment or private mortgage insurance (PMI). VA loans offer several advantages over conventional mortgages, such as:
- Lower interest rates
- No down payment
- No PMI
- Flexible credit requirements
- No prepayment penalty
If you’re eligible for a VA loan, it’s essential to choose the right lender to get the most out of your benefits.
How to Find the Best VA Loan Lender?
Now that you know what VA loans are let’s move on to finding the best VA loan lender. Here are some tips to help you:
1. Check for VA Approval
The first thing to look for when choosing a VA loan lender is their approval from the Department of Veterans Affairs. Not all lenders offer VA loans, and not all VA-approved lenders are the same. A VA-approved lender has met the Department of Veterans Affairs’ standards for loan origination, underwriting, and servicing, so you know you’re dealing with a reliable and trustworthy lender.
2. Compare Rates and Fees
The second essential factor to consider when choosing a VA loan lender is the interest rates and fees they charge. VA loans already come with lower interest rates than conventional mortgages, but not all VA lenders offer the same rates.
Look for a lender that offers competitive rates and transparent fees. Some lenders may advertise lower rates, but they may have hidden fees that can offset any savings you get from the lower rate.
3. Check the Lender’s Reputation
The third thing to look for when choosing a VA loan lender is their reputation. You can check the lender’s reputation by reading reviews from other customers or looking at their ratings from independent organizations like the Better Business Bureau (BBB) or J.D. Power.
You want to work with a lender who values their customers and provides excellent customer service. Avoid lenders who have a history of complaints or negative reviews.
4. Look for a Lender Who Specializes in VA Loans
The fourth thing to consider when choosing a VA loan lender is their specialization in VA loans. While many lenders may offer VA loans, not all of them specialize in this type of loan. A lender who specializes in VA loans will have a deeper understanding of the loan process and can guide you through the application process with ease.
5. Ask for Referrals
The fifth tip to finding the best VA loan lender is by asking for referrals. If you have friends, family, or colleagues who have obtained a VA loan in the past, ask them for their lender’s name and contact information. Personal referrals are an excellent way to find a trustworthy lender who can meet your needs.
6. Consider Online Lenders
The sixth and final tip to finding the best VA loan lender is by considering online lenders. Online lenders often offer lower rates and fees than traditional banks or lenders. However, be sure to check their reputation and customer service before choosing an online lender.
Best VA Loan Lenders: Our Top Picks
Now that you know what to look for in a VA loan lender let’s take a look at some of our top picks:
Lender Name |
VA Approval |
Interest Rates |
Fees |
Customer Reviews |
|---|---|---|---|---|
USAA |
Yes |
starting at 2.875% |
No application fee |
4.6/5 on ConsumerAffairs |
Navy Federal Credit Union |
Yes |
starting at 2.25% |
No loan origination fee |
4.6/5 on Credit Karma |
Quicken Loans |
Yes |
starting at 2.875% |
No lender fees |
4.8/5 on Trustpilot |
FAQs
Q: What is the minimum credit score required for a VA loan?
A: The Department of Veterans Affairs does not set a minimum credit score requirement. However, most lenders require a credit score of at least 620 for a VA loan.
Q: How much can I borrow with a VA loan?
A: The maximum amount you can borrow with a VA loan depends on the county’s loan limit where the property is located. In most counties, the loan limit is $548,250. However, in some high-cost counties, the loan limit can go up to $822,375.
Q: Can I use a VA loan to buy a vacation home or investment property?
A: No, VA loans are only for primary residences. You cannot use a VA loan to buy a second home or investment property.
Q: Are VA loans only for first-time homebuyers?
A: No, VA loans are available to anyone who is eligible, regardless of whether they are a first-time homebuyer or not.
Q: Can I get a VA loan if I have already used my VA entitlement?
A: Yes, you can still get a VA loan if you have already used your VA entitlement. However, you will need to restore your entitlement to get a new VA loan.
Q: How long does it take to get approved for a VA loan?
A: The time it takes to get approved for a VA loan varies depending on the lender and other factors. In general, it can take 30 to 45 days to close a VA loan.
Q: How much should I put down on a VA loan?
A: VA loans do not require a down payment. However, putting down a down payment can lower your monthly payments and decrease the overall cost of the loan.
Q: Can I refinance my existing VA loan?
A: Yes, you can refinance your existing VA loan through a VA Interest Rate Reduction Refinance Loan (IRRRL) or a Cash-Out Refinance. However, certain eligibility requirements apply.
Q: What kinds of properties can I buy with a VA loan?
A: You can use a VA loan to buy a single-family home, a condominium, a townhome, or a multi-unit property (up to four units).
Q: How long do I need to have served to be eligible for a VA loan?
A: The length of service required to be eligible for a VA loan depends on when you served and the type of service you had. Generally, you need at least 90 days of active-duty service or six years of National Guard or Reserves service to be eligible for a VA loan.
Q: Can I get a VA loan if I have a foreclosure or bankruptcy on my credit history?
A: Yes, you may still be eligible for a VA loan even if you have a foreclosure or bankruptcy on your credit history. However, certain waiting periods and other requirements apply.
Q: Can I get a VA loan with a non-Veteran co-borrower?
A: Yes, you can get a VA loan with a non-Veteran co-borrower, but the VA will only guarantee the Veteran’s portion of the loan.
Q: Do I have to pay closing costs on a VA loan?
A: Yes, you will still have to pay some closing costs on a VA loan, but they are generally lower than with conventional mortgages. However, you may be able to negotiate with the seller to cover some or all of the closing costs.
Q: What if I can’t make my VA loan payments?
A: If you are having trouble making your VA loan payments, you should contact your lender immediately. There are several options available, such as loan modification or forbearance, to help you keep your home or find a solution that works for you.
Conclusion
Finding the best VA loan lender takes time and research, but it’s worth it to get the most out of your VA loan benefits. Remember to check for VA approval, compare rates and fees, check the lender’s reputation, look for a lender who specializes in VA loans, ask for referrals, and consider online lenders. Use our top picks as a starting point, but be sure to do your own research to find the right lender for your needs. If you follow these tips, you’ll be well on your way to finding the best VA loan lender.
Don’t wait any longer to take advantage of a VA loan. Contact a lender today and start the process of owning your dream home.
Closing Disclaimer
The information provided in this article is for educational purposes only and does not constitute financial or legal advice. You should consult with a qualified professional before making any financial or legal decisions. The author and publisher are not responsible for any losses or damages that may arise from your use of this information.