Best VA Mortgage Lenders of December 2024
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A VA loan is a kind of mortgage exclusively for military borrowers and their surviving spouses. These loans are issued by lenders and guaranteed by the U.S. Department of Veterans Affairs. Benefits of these loans include no down payment or private mortgage insurance (PMI) requirements, and they have low interest rates compared to other kinds of mortgages. We’ve selected some of the best VA mortgage lenders in a variety of categories to give you a head start.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best VA Mortgage Lenders of December 2024
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 0% | Top 3 most visited 🏆 Learn more at Veterans United | ||
620 | 0% | |||
580 | 0% | Learn more at First Federal Bank | ||
 Alliant: NMLS#197185 LEARN MORE on NerdWallet | null | N/A | LEARN MORE on NerdWallet | |
 Rate: NMLS#2611 LEARN MORE on NerdWallet | 580 | 0% | LEARN MORE on NerdWallet |
Explore all of our lender picks by category
- Specializes in working with military borrowers.
- Offers VA refinancing.
- Sample interest rates are posted online.
- Interest rates are on the higher end compared to other VA lenders.
- Does not offer VA renovation loans.
- Interest rates and origination fees are on the lower side compared to other VA lenders.
- Offers energy-efficient mortgages.
- Offers VA refinancing.
- Does not offer VA renovation loans.
- Interest rates and origination fees are on the lower end compared to other VA lenders.
- Offers VA energy-efficient mortgages.
- Offers VA refinancing.
- Does not offer VA renovation loans.
- VA interest rates and origination fees are on the lower end compared to other VA lenders.
- Interest rates are customizable online.
- Does not offer VA refinancing.
- Does not offer VA renovation loans.
- Offers VA renovation loans.
- Offers VA refinancing.
- Offers VA energy-efficient mortgages and Native American Direct Loans.
- VA interest rates and origination fees are average.
- Interest rates are on the lower end compared to other VA lenders.
- Offers VA Interest Rate Reduction Refinance loans (VA IRRRL).
- Sample interest rates are posted online.
- Does not offer VA cash-out refinancing.
- Does not offer VA renovation loans.
- Offers VA refinancing.
- Offers VA renovation loans.
- Rate estimates can be customized online.
- VA lending makes up a small part of Flagstar’s originations.
- Offers VA refinancing.
- Interest rates are low compared to other VA lenders.
- Does not offer VA renovation loans.
- Customer service score is on the lower end compared to other VA lenders.
- Sample VA rates are posted online.
- Offers VA refinancing.
- Lender received a low score for customer experience.
- Does not offer VA renovation loans.
- Best-scoring VA lender for interest rates and fees.
- Offers VA refinancing.
- Specializes in working with military borrowers.
- Does not offer VA renovation loans.
- Rate estimates can be customized online.
- VA interest rates are on the lower end compared to other VA lenders.
- Offers VA refinancing.
- Does not offer VA renovation loans.
- Origination fees are on the higher end compared to other VA lenders.
- High customer experience score.
- Offers VA refinancing.
- Interest rates are on the lower end compared to other VA lenders.
- Does not offer VA renovation loans.
- VA lending makes up a small part of US Bank’s originations.
- Offers low interest rates compared to other VA lenders.
- Offers VA refinancing.
- Does not offer VA renovation loans.
- VA lending makes up a small part of Truist’s originations.
Qualifying for a VA loan
VA home loans are backed by the U.S. Department of Veterans Affairs and provided by private lenders. VA loans require no down payment or mortgage insurance and have competitive mortgage rates compared to other types of home loans.
Active-duty military members and veterans who meet length-of-service requirements may be eligible for a VA loan. Some surviving spouses may also apply for a VA loan.
Special fees associated with VA loans
Borrowers are required to pay a “funding fee,” which could be compared to a one-time mortgage insurance payment since it protects the VA’s interest in case you default. This fee will amount to a certain percentage of your mortgage, which is calculated based on factors like your down payment and whether or not you’ve used your VA entitlement before.
Funding fee requirements range from 1.25% to 2.15% of the loan amount if this is your first VA loan.
Down Payment | Funding Fee — Purchase or Construction Loan, First Use |
|---|---|
0% to 5% | 2.15% |
5% to 9.9% | 1.5% |
10% or more | 1.25% |
Funding fee requirements range from 1.25% to 3.3% of the loan amount you’ve gotten a VA loan before.
Down Payment | Funding Fee — Purchase or Construction Loan, Subsequent Use |
|---|---|
0% to 5% | 3.3% |
5% to 9.9% | 1.5% |
10% or more | 1.25% |
VA refinances have funding fee requirements as well, ranging from 0.5% to 3.3% of the loan amount.
VA Refinance Loan | Funding Fee |
|---|---|
Cash-out refinance — first use | 2.15% |
Cash-out refinance — subsequent use | 3.3% |
VA IRRRL Loan | 0.5% |
Alternatives to VA loans
You may be denied a VA home loan if you don't meet the basic VA loan eligibility requirements or don't meet a lender's financial requirements. An FHA loan, insured by the Federal Housing Administration, might be an alternative if you have a lower credit score.
If you are moving to an eligible area and your income does not exceed 115% of the local median household income, you may qualify for a USDA loan, guaranteed by the U.S. Department of Agriculture. Like VA loans, USDA loans have no down payment requirements.
Some lenders may also have their own proprietary loan programs that fit the needs of service members. For example, Navy Federal Credit Union has a Military Choice Home Loan option for borrowers who have exhausted their VA loan benefit.
More from NerdWallet
Last updated on December 20, 2024
Frequently asked questions
- What lender is best for VA loans?
All VA loans are subject to rules and guidelines set by the U.S. Department of Veterans Affairs. Individual VA lenders vary by the services and options they offer as well as the requirements they set for borrowers, such as minimum credit scores, however. This is why it's important to shop around to compare mortgage rates and qualification requirements.
- What is the current interest rate for VA loans?
VA mortgage rates fluctuate daily, just as rates for other loans do. Rates also vary by lender, and the rate you're offered will depend on a variety of factors, such as your credit score. When shopping VA lenders, compare the annual percentage rate, or APR, to get a complete picture of the true costs. The APR includes the interest rate, fees and other costs of the loan.
- What credit score do you need to qualify for a VA loan?
The Department of Veterans Affairs doesn't set a minimum credit score for VA loans. But lenders can have their own requirements, and they often look for scores of 620 or higher. Lenders that accept lower scores may require applicants to meet stricter standards in other areas. VA lenders will also look at other factors, such as your debt-to-income ratio, to evaluate your ability to repay the loan.
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s VA loans category. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
All reviewed mortgage lenders that offer VA loans were evaluated based on (1) the portion of their business dedicated to VA lending, (2) their market share among all 2023 VA loan originations, (3) their average VA loan origination fees, (4) their average VA loan interest rates, (5) their variety of VA loan types (including VA Energy Efficient Mortgages, VA rehab and renovation loans, VA Interest Rate Reduction Refinance Loans and VA cash-out refinances), (6) their VA interest rate transparency, (7) customer experience. The highest scoring lenders appear on this page. Lenders gained extra points for offering Native American Direct Loans, and lost points for recent government actions regarding violations that harmed customers.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best VA Mortgage Lenders of December 2024
- Veterans United: Best for VA specialization
- NBKC: Best for low rates and fees
- First Federal Bank: Best for low rates and fees
- Alliant: Best for low rates and fees
- Rate: Best for variety of VA loan types
- Wells Fargo: Best for rate shopping
- Flagstar: Best for variety of VA loan types
- PenFed: Best for variety of VA loan types
- USAA: Best for rate shopping
- Navy Federal: Best for low rates and fees
- Pennymac: Best for rate shopping
- U.S. Bank: Best for rate shopping
- Truist: Best for rate shopping
