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Best VA loan lenders of January 2025
VA loans are undoubtedly among the best bargains in home financing. Backed by the U.S. Department of Veterans Affairs and issued to borrowers with military service connections, a VA mortgage allows no down payments on most loans, a limit on closing costs, and no private mortgage insurance requirement.
However, not all VA lenders are the same. Rates, fees, and services vary from one lender to another. Combining the amazing advantages of a VA home loan with an outstanding lender will enhance the value of your well-deserved military benefit. Yahoo Finance did the research on national lenders offering VA loans. We've poured through the federal records of lender practices — interest rates, total lender fees, and other affordability factors — and determined the best VA mortgage lenders of January 2025.
Learn more: Zero-down mortgage — How to buy a house with no down payment
Best VA mortgage lenders
Best VA lender overall
Navy Federal Credit Union
Stars: 4.20
Read our full Navy Federal Credit Union mortgage review
Key benefits
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The No-Refi Rate Drop offer allows you to snag a lower interest rate six months or later after closing — for a $250 fee — without additional closing costs or changing your loan terms.
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A rate guarantee states that Navy Federal will match a better mortgage rate offered by a competing lender on the same loan or pay you $1,000 after you close with the other lender.
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The Special Freedom Lock allows an interest rate reduction of up to 0.50% if rates move lower before your loan closing, which is just one feature that makes Navy Federal one of the best mortgage lenders for first-time buyers.
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Military Choice loans allow benefits similar to VA mortgages to current and former service members without further entitlements.
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Buy your home through a Navy Federal real estate agent partner and receive $400 to $9,000 cashback.
Need to know
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Ranked near the top of all the lenders considered in the latest J.D. Power Mortgage Origination Satisfaction Study, which measured customer satisfaction with mortgage lenders.
Dig deeper: Should you lock in your mortgage rate, and if so, when?
Best VA lender for refinancing
Pennymac
The Yahoo view: As the nation's second-largest VA lender by loan volume, Pennymac is an obvious choice for military-related borrowers, especially for those looking to refinance a VA loan.
Stars: 3.80
Read our full Pennymac mortgage review
Key benefits
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If rates go down after you close a home loan with Pennymac, get a $2,000 credit toward closing costs when you refinance within three years.
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A Pennymac Pre-Approval shows home sellers that you are a serious — and credit-qualified — buyer. Plus, you will receive a $1,000 credit to apply to your closing costs.
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Pennymac often services the loans they issue.
Need to know
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Pennymac had a well-below-average rating for customer satisfaction, according to the 2024 J.D. Power Mortgage Origination Satisfaction Study.
Learn more: Does mortgage preapproval hurt your credit score?
Best VA lender for face-to-face service
Rate (previously Guaranteed Rate)
The Yahoo view: Among the first-movers in digital mortgages, Rate also offers a network of local branches.
Stars: 3.80
Read our full Rate (Guarantee Rate) mortgage review
Key benefits
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With about 500 offices nationwide, Rate offers the opportunity to work with a loan officer in person.
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Touts rapid loan approval.
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Offered a lower-than-median mortgage rate on loans issued in 2023.
Need to know
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Scored well below average in customer satisfaction, according to J.D. Power's survey.
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Sample mortgage rates are improved with more than one discount point.
Best VA lender for educational resources
AmeriHome
The Yahoo view: AmeriHome offers abundant informational resources to borrowers looking to learn more about the process.
Stars: 3.60
Read our full AmeriHome mortgage review
Key benefits
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AmeriHome earns 5 stars in Yahoo Finance’s Online Features category for outstanding home-buyer tools, calculators, and videos.
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Offers free "mortgage checkups" every six months to help you determine whether your current loan is still the best solution.
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Provides a $750 lender fee credit if you are a repeat AmeriHome borrower.
Need to know
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Doesn't originate loans to residents of Hawaii, Massachusetts, or New York.
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Doesn't provide sample mortgage rates unless you provide contact information.
Best VA lender for home-buying benefits
loanDepot
The Yahoo view: loanDepot distinguishes itself with cash bonus benefits related to buying and closing on a house.
Stars: 3.40
Read our full loanDepot mortgage review
Key benefits
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If you buy a home with a loanDepot-affiliated real estate agent and close the loan with loanDepot, you can earn a $3,500 cash bonus at closing with the Grand Slam program.
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Buying and selling under the Grand Slam benefits program could earn you up to $7,000 in closing costs credits.
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If you refinance a loanDepot mortgage in the future, the lender fee is waived.
Need to know
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No sample mortgage rates are available online.
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Ranked below average in the J.D. Power Mortgage Origination Satisfaction Survey.
Read more: When it makes sense to refinance your mortgage
Best VA lender for 24/7 convenience
Veterans United
The Yahoo view: Veterans United is unparalleled in customer service ratings, but Yahoo Finance found the mortgage lender’s interest rates to be higher than the median of many other lenders.
Stars: 3.20
Read our full Veterans United mortgage review
Key benefits
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Offers 24/7 customer service that reflects the international nature of military service.
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Veterans United received the highest score among all lenders considered in the 2024 J.D. Power Mortgage Origination Satisfaction Study.
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Has ample educational resources for first-time home buyers, including a home-buying book and web course, on a clean, easy-to-navigate website.
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Provides counseling for potential borrowers who are looking to improve their creditworthiness.
Need to know
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Veterans United's interest rates are generally higher than the median rates of many other VA lenders, according to a Yahoo Finance analysis of 2023 Home Mortgage Disclosure Act data.
Dig deeper: Everything you should know as a first-time home buyer
Best VA lender for online application
Rocket Mortgage
The Yahoo view: Rocket brought online home loans to the masses and still sets the bar for the digital mortgage process.
Stars: 3.06
Read our full Rocket Mortgage review
Key benefits
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The Rocket Mortgage online application process is time-tested and has set the standard for the industry.
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Rocket Mortgage allows a debt-to-income ratio (DTI) of up to 60% on VA loans.
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Offers a free refinancing review promising to "find savings you didn't know existed."
Need to know
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Though VA loans don't have an official credit score requirement, Rocket looks for a minimum FICO score of 580.
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Rocket rated above average in the latest J.D. Power mortgage satisfaction survey.
Best VA lender for no origination fee
USAA mortgage
The Yahoo View: USAA is a well-known national provider of financial services to the military community. It offers some unique advantages for home buyers, including no mortgage origination fee.
Stars: 3.00
Read our full USAA mortgage review
Key benefits
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USAA charges no origination fees on VA loan products.
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Offers VA and conventional loans.
Need to know
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USAA only has branch offices in Colorado, New York, Maryland, and Texas.
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Doesn't offer home equity loans or lines of credit.
Best VA lender for customer satisfaction
Fairway Independent Mortgage
The Yahoo view: Above average when it comes to customer satisfaction, Fairway Independent Mortgage is a VA lender with online capabilities and local offices in 48 states.
Stars: 2.70
Read our full Fairway Independent Mortgage review
Key benefits
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With an above-average rating in J.D. Power's Origination Satisfaction Survey, Fairway serves VA borrowers competently.
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Offers branch office locations in 48 states and Washington, D.C.
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Gets a Yahoo Finance 5-star rating in our Online Features category.
Need to know
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The Department of Justice and Consumer Financial Protection Bureau have accused Fairway of illegal mortgage lending discrimination against majority-black neighborhoods in the Birmingham, Alabama, area. A proposed settlement orders a $1.9 penalty against Fairway and requires the mortgage lender to provide $7 million for a loan subsidy program and an additional $1 million for outreach and education.
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Fairway is stingy with mortgage rate information, offering no sample interest rates on its website.
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No local offices in Alaska or West Virginia (though Fairway still offers mortgages in these states).
Read more: How to get the lowest mortgage rate
Tips for comparing VA home loan lenders
The best VA lenders will:
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Help you confirm your eligibility. (See "Certificate of Eligibility" below)
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Walk you through the loan process before it begins.
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Explain mortgage terms as you encounter them.
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Assist you in completing a loan application.
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Walk you through the timeline to closing.
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Offer you a competitive combination of a low interest rate and limited fees.
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Understand and appreciate the fact that you'll want to shop multiple lenders.
Yahoo Finance tip: VA loan qualification standards do not set minimum credit score requirements to buy a house, but lenders may establish their own eligibility requirements. And VA-backed mortgages do not have set interest rates. So, lenders may require a minimum credit score, and mortgage rates vary widely from one lender to the next. That's why it is important to shop for more than one lender.
What is a VA loan?
VA loans are an exclusive benefit for members of a U.S. branch of military service or veterans. Eligible surviving spouses can also qualify. Government home loans administered by the Department of Veterans Affairs, VA loans have unique benefits and flexible approval guidelines. VA loans also allow plenty for a buyer to negotiate: Sellers can pay for discount points, closing costs, or offer any other cash concession up to 4% of the loan amount.
Learn more: What is a VA loan?
Types of mortgages offered by the top-rated VA loan lenders
The best VA home loan lenders will offer the full slate of VA mortgage types. They’ll also offer options for VA mortgage refinancing, which we’ll cover a little later. Here are your options for VA loan types:
VA purchase loans
Buying a home with a VA loan allows most borrowers to qualify without making a down payment. It's a lifetime benefit that can be tapped again and again. A VA loan can be used to purchase a single-family home, townhouse, manufactured home and lot, or a multifamily development with up to four units.
Dig deeper: 12 popular types of houses
VA condo purchase loans
This is a type of purchase loan program designed for buyers interested in condominiums. VA-backed loans have specific guidelines for the types of condos that will be approved.
VA fixed-rate loans
A VA fixed-rate mortgage has an interest rate that does not change for the life of the loan. Terms typically range from 15 to 30 years.
VA adjustable-rate mortgages (ARMs)
A VA adjustable-rate mortgage begins with an introductory rate and then varies at pre-determined intervals. For example, a 5/1 ARM keeps your rate the same for the first five years before changing your rate once per year.
VA Energy Efficient Mortgages (EEMs)
With a VA EEM, you can make up to $6,000 worth of energy-efficient upgrades to your home. This loan is combined with a purchase mortgage or a streamline refinance (IRRRL) and closes on the same day. So, it takes a little planning ahead but can add value to a fixer-upper you are buying or to your existing place as part of a streamline refinance.
VA Alteration and Repair loans
Much like the Energy Efficient Mortgage, the VA Alteration and Repair loan is a piggy-back mortgage that provides funds for renovation to a property at the same time it is being purchased or refinanced.
VA construction loans
With housing inventory so meager, many would-be homeowners are considering building a new home. A VA construction loan can fund the building of the house and even the land it sits on. One caveat: A construction loan cannot be used to purchase a new home built and for sale by a developer. You would use a regular VA purchase loan to buy that house.
Read more: What is a VA construction loan, and how does it work?
VA Farm Residence loans
If farm living is the life for you, the VA Farm Residence loan may just be the ticket. The mortgage can be used to buy, build, renovate, or otherwise improve a farm residence. However, it can't be used to fund a farm business, equipment, or livestock.
VA assumable loans
These days, with higher mortgage rates, assumable mortgages can be your superpower. As a VA-qualified buyer, you can buy a VA-financed home from a seller — who very likely may have an attractively low interest loan rate. You get the home and the low mortgage rate. You'll likely have to pay the existing homeowner a decent price for the home, including their home equity, but that low mortgage rate will serve up significant savings for years.
VA Native American Direct Loans (NADLs)
Under this program, homes located on Federal Trust Land by a Native American veteran or eligible spouse might qualify for a purchase loan or refinance. The definition of Native Americans includes federally recognized tribes and nations as well as traditional Pacific Islander communities.
How to refinance a VA loan
Refinancing is the process of lowering your mortgage rate by replacing it with a new loan. The VA offers two primary refinancing options.
VA Interest Rate Reduction Refinance loans (IRRRLs)
IRRRL, pronounced "Earl," is the VA streamline refi mortgage. Simpler and faster to qualify for and close, it is the most popular refinancing option offered by the VA. Use it when current mortgage rates have fallen to lower your monthly mortgage payments or shorten the payoff on your loan.
Read more: How a VA streamline refinance (VA IRRRL) works
VA cash-out refinance loans
A cash-out refinance loan taps your home equity with a new mortgage. It's particularly beneficial when interest rates have fallen below your current loan's annual percentage rate (APR).
Learn more: How a VA cash-out refinance works
How to get a VA mortgage
Getting a VA home loan is nearly identical to qualifying for a conventional mortgage or any other type of loan. There is lots of paperwork and plenty of documents to exchange, and it can seem that the whole process takes forever.
But you don't want to take any shortcuts.
Talk to three or four lenders. Get an idea of what it will take to qualify with them and get a mortgage preapproval. You'll receive a Loan Estimate, a short document outlining the expected terms and interest rate you will be eligible for. But remember, this is not a binding agreement.
You'll want to pay attention to any origination fee, other lender and third-party fees, and the loan's estimated APR. Circle that monthly payment and make sure you're good with it. Do this with each lender, and with a preapproval letter in hand, shop for your new place. When a purchase agreement is signed, select your preferred lender and apply for an official mortgage approval.
Four to six weeks later — if everything goes as planned (even though there's likely to be a bump or two along the way) — you'll close on the house.
Enjoy that cup of coffee in your new place, homeowner.
Learn more: How to get a mortgage
VA funding fee
While VA loans have no mortgage insurance requirement, they do charge an upfront VA funding fee. Alas, there are few free rides. But look on the bright side:
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VA funding fees can be waived for certain borrowers.
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It can be paid by the seller, lender, or anyone else you can convince.
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You can roll the funding fee into your mortgage if you're short of cash.
Read more: What is the VA funding fee, and how much does it cost?
VA funding fee exemption: How to get one
Borrowers do not have to pay a VA funding fee if they are:
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Receiving VA compensation for a service-connected disability.
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Entitled to receive VA compensation for a service-connected disability but instead receive retirement or active service pay.
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An un-remarried surviving spouse of a veteran who died in active service or from a service-connected disability.
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A service member with a proposed or memorandum rating from the VA eligible for compensation due to a pre-discharge claim.
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On active duty and has been awarded the Purple Heart.
Learn more: How the VA funding fee exemption works
VA Certificate of Eligibility (COE)
A VA Certificate of Eligibility is required to qualify for a VA mortgage. Most lenders can download the certificate from a government system, which will help you acquire your COE. You can also get it yourself from the VA eBenefits website.
Read more: What is a VA Certificate of Eligibility (COE)?
Mortgage lenders that did not make our VA best lender list
We considered the following mortgage lenders providing VA loans for our best-of list, but they weren’t quite as strong as our top picks:
Best VA loan lender FAQs
What bank is best for VA loans?
If you’re considering using a bank as one of the mortgage lenders competing for your business, the best bank may be the one you already use. Banks sometimes offer benefits to home buyers who are already customers, such as closing costs credits or lender fee discounts.
Who is the top lender for VA loans?
Veterans United is the top VA mortgage lender in America by loan volume, according to 2023 Home Mortgage Disclosure Act data. It also had the highest customer satisfaction score in the 2024 J.D. Power Mortgage Origination Satisfaction Study. Yet, other factors, including higher-than-median interest rates, kept Veterans United from winning the Best Overall VA Lender award from Yahoo Finance — we chose Navy Federal Credit Union.
What is the best company to use for a VA loan?
Our overall pick for the best company to use for a VA loan is Navy Federal Credit Union. NFCU garnered the highest marks for lower-than-median interest rates and loan costs. Those are two of the most critical factors in choosing a mortgage lender. However, shopping multiple lenders can help you get the best deal on what undoubtedly will be one of the largest debts you'll ever assume.
What is the interest rate on a VA loan right now?
Your VA loan interest rate will depend on various factors, including which mortgage lender you choose. According to Zillow data, 30-year VA loan rates have moved from the mid-5% range to near 6% over the past several months. The 15-year VA loan rates have stayed roughly around 5.25% to 5.5%. The 5/1 VA ARM rates have hovered near 6%.
Who has the best VA rate right now?
Interest rates constantly change; however, Yahoo Finance analyzed 2023 Home Mortgage Disclosure Act data to determine which VA lenders offered the best rates. Of the lenders we reviewed in this best VA lenders list, Navy Federal Credit Union, Pennymac, loanDepot, and USAA had 5-star scores for the lowest interest rates. To get the most competitive interest rate, we urge you to shop at several lenders, ask for a Loan Estimate with zero discount points, and have the lenders compete for your business with a combination of the best interest rate and lowest fees.
Should I shop around for a VA loan?
Yes, shopping with different mortgage lenders for your VA loan is always a good idea. Get preapproval letters for three or four lenders to see which offers you the best deal.
Methodology:
Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.
Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.
Advertisers or sponsorships do not influence ratings.
This article was edited by Laura Grace Tarpley.
