5 Best VA Home Loan Mortgage Lenders of 2022

(Ad) If you're a veteran or active military member, a VA loan is a military benefit you should strongly consider.

VA loans are mortgage loans available through the U.S. Department of Veterans Affairs. These loans do not require a down payment or minimum credit score, making them more accessible for many people. They also come with competitive interest rates and do not require you to obtain private mortgage insurance, making them affordable overall.

However, numerous VA mortgage lenders exist across the market, each with its own interest rates, minimum credit score requirements, and loan processes. We've created this guide to let you in on the best VA mortgage lenders of 2022 and help you make a more informed decision.

Without further ado, here are the 5 best VA home loan lenders of 2022.

The 5 Best VA Home Loan Lenders of 2022

• Veterans United: Best overall
• Rocket Mortgage: Best online lender
• Freedom Mortgage: Best for a cash out refinance
• Paramount Bank: Best for no origination fees
• loanDepot: Best customer service

#1. Veterans United: Best Mortgage Lender Overall

Veterans United is a reputable VA mortgage lender offering affordable loans for members of the VA. This company has been the Top VA Purchase Lender for six consecutive years, from 2016 to 2021, according to the Department of Veterans Affairs.

Loan Details

Veterans United offers VA home loans with varying interest rates and terms. You can choose from the following loan types:

• 30-year fixed VA purchase
• 15-year fixed VA purchase
• 30-year streamline
• 15-year streamline
• 30-year VA cash-out
• 15-year VA cash-out
• 30-year fixed VA jumbo
• 30-year streamline jumbo
• 30-year VA cash-out jumbo

The exact interest rates and terms you will receive depend on your credit score. Borrowers with credit scores of 720 can receive an interest rate of 4.375% and an APR of 4.725% on 30-year fixed VA purchase loans.

You can use the tool on the Veterans United home loans website to calculate your rates based on your credit score.

Reputation

Veterans United has a strong industry reputation as one of the most reliable VA mortgage lenders on the market. You can read unedited, unfiltered reviews of the lender on the Veterans United website.

The lender has a 98% customer satisfaction rate overall, with an average rating of 4.8 out of 5 stars.

Unique Selling Points

Veterans United makes receiving a VA loan faster and easier than ever. You can check your eligibility on the Veterans United home loans website. The lender will walk you through several questions to determine your eligibility for its loan types.

Then, you can provide information about your income, demographics, and credit score to receive a quote. Veterans United will then walk you through the steps to apply for and receive your VA loan.

Along with providing affordable VA loans, Veterans United also offers extensive resources to educate potential borrowers about buying a home. For example, you can check out the "Education" section on the Veterans United website to view user-friendly video lessons about homebuying. These resources are incredibly helpful for first-time homebuyers.

Altogether, we highly recommend choosing Veterans United for your VA home mortgage.

Pros

• 620 minimum credit score requirement
• Access to over 6,000 real estate agents
• 24/7 customer service
• Easy online application

Cons

• Doesn’t offer home equity loans or HELOCs
• Physical branch in only 17 states

Click here to check rates with Veterans United or to apply online

#2. Quicken Loans: Online Lender with Great Reputation

Rocket Mortgage by Quicken Loans is a mortgage loan provider offering several different loan types to a range of customers. This lender has received over 19,000 reviews on Trustpilot and has achieved an "excellent" rating overall.

Loan Details

Quicken Loans offers several different types of mortgages, including VA loans. The lender offers 30-year, 25-year, and 15-year fixed VA loans.

If you're interested in a VA loan through Quicken Loans, you can apply online through the Rocket Mortgage online application tool.

Alternatively, if you're not ready to commit yet, you can instead fill out a request form to receive a call from a Home Loan Expert. This loan expert can give you personalized recommendations to help you narrow your loan products and choose the best loan for your needs.

Reputation

Quicken Loans is "America's Largest Mortgage Lender," according to its website. It's no secret that this mortgage lender has a positive reputation in the loan industry. The lender's simplified home mortgage process, numerous lending options, affordable rates, and online application set it apart from other lenders.

Additionally, this lender has received the award for Highest in Customer Satisfaction in the U.S. from J.D. Power for eight consecutive years — from 2014 to 2021.

Unique Selling Points

Rocket Mortgage includes a helpful Learning Center on its website to help you understand its loan processes and make a more informed decision for your own loan. In this Learning Center, you will find information about:

• Refinancing your home
• Taxes and insurance
• Increasing your credit score
• Managing your mortgage
• Winning a bidding war
• And more

If you're new to buying a home, you may find this resource tab extremely beneficial.

However, you can also use the lender's website as a resource if you simply need more information about VA loans. Quicken Loans includes all of the eligibility requirements and qualifications for VA loans right on its website, giving you a convenient location to review this information and apply for your loan.

Additionally, this mortgage lender offers excellent customer service. You can chat with one of the lender's loan experts directly on the Rocket Mortgage website to receive tailored guidance for your loan process. You can also call the company to speak with a representative.

Overall, we highly recommend considering Quicken Loans / Rocket Mortgage as your VA mortgage lender.

Pros

• Great for people who want to apply for a home loan online
• See the loan amount you qualify for in just minutes
• Highest in customer satisfaction according to J.D. Power

Cons

• Higher fees than most other VA lenders
• No branch offices
• Getting a customized interest rate could require a credit check, which can affect your credit score
• Doesn’t offer home equity loans or HELOCs

Click here to check rates with Quicken Loans or to apply online

#3. Freedom Mortgage: Best VA Refinance Lender

Freedom Mortgage is a mortgage company that helps borrowers achieve the American dream. The company launched in 1990 and has since become a top mortgage lender specializing in helping borrowers receive loans that meet their specific, unique circumstances.

Loan Details

Freedom Mortgage offers a few different loan products, including mortgages to buy a home and loan options to refinance your home. The lender's home loan products include:

• FHA loans
• VA loans
• USDA loans
• Conventional loans

Meanwhile, its refinance options include:

• Refinance and get cash options
• FHA cash-out refinance options
• VA cash-out refinance options
• VA IRRRL refinance options

If you're interested in buying or refinancing a home with a VA loan, you can fill out the estimate form on the Freedom Mortgage website.

If you're looking for lenders that offer home equity loans, you'll be happy to know that Freedom Mortgage has home equity loan and line of credit options as well.

Reputation

Freedom Mortgage has a positive reputation for making VA mortgages accessible to many people. The company strives to foster homeownership across the country through its affordable, user-friendly lending services.

Freedom Mortgage is also well-known for using transparent, fair lending practices. The company states on its website that it may be able to offer you loan rates that are lower or higher than other lenders. Freedom Mortgage doesn't make false promises about your rates but instead ensures that you fully understand your options and its services.

Unique Selling Points

Freedom Mortgage is unique from other lenders on our list in that it advertises its mortgage refinancing services just as heavily as its homebuying loans. If you're looking to refinance your mortgage, you may have a more seamless experience with Freedom Mortgage than with another online lender on our list.

This lender is also passionate about educating its clients about its loan products. Freedom Mortgage is committed to ensuring that you understand the benefits, costs, and requirements of VA loans. Before you finalize a loan through Freedom Mortgage, you'll have all of the information you need to feel confident in your decision.

Altogether, if you're looking for an honest, ethical VA lender, we highly recommend Freedom Mortgage.

Pros

• No home appraisal or income verification for IRRRLS
• Good option for fair credit borrowers
• 580 minimum credit score requirement
• Finance up to 90% of your home’s value
• Unlock your home’s equity with a cash out refinance
• Easy online application

Cons

• No HELOCs
• Requires a 3% down payment

Click here to check rates with Freedom Mortgage or to apply online

#4. Paramount Bank: Best for Low Rates and Fees

Paramount Bank is a digitally empowered bank offering personal banking, business banking, and home loans. The company launched in 2017 as an innovative, unique banking company committed to putting its customers' needs over its own.

Loan Details

This lender offers an extensive range of personal, commercial, and home loans. Its home loan products include:

• Conventional mortgages
• VA loans
• FHA loans
• Non-conforming loans

You can create an account from Paramount Bank directly on the lender's website. Once you create your account, you can learn more about the lender's VA loans and apply for a loan right through your computer or mobile device.

Reputation

Paramount Bank has developed a user-friendly, innovative reputation amongst borrowers. The company uses best-in-class technology throughout its lending and banking services and delivers superior customer service.

Paramount Bank has received 5 out of 5 stars on Zillow, a 95.6 out of 100 customer satisfaction rating, and 4.9 out of 5 stars on Lending Tree. You can read customer testimonials by clicking the link on the Paramount Bank website.

Unique Selling Points

Along with home loans, Paramount Bank also offers a few personal banking products, such as savings accounts, certificates of deposit (CDs), interest checking accounts, and money market accounts. If you are interested in any of these products, combining your VA mortgage with these products may make sense to simplify your banking process.

Additionally, this VA loan lender offers digital banking solutions that make it easier than ever to manage your loan. Paramount Bank has several physical branches throughout the U.S., but you can conduct most of your banking online, saving you time.

Like the other lenders on our list, Paramount Bank has a few helpful resources for purchasing a home and navigating VA loans. You can check out the lender's blog for information about the best time to buy a home, the benefits of mobile banking, and more.

Finally, Paramount Bank offers refinancing options to help you save on your existing mortgage.

Altogether, if you're looking for a VA lender that offers a digital lending experience, we recommend Paramount Bank.

Pros

• Easy online application available
• No prepayment penalty
• No origination fees
• 98% recommended status on LendingTree

Cons

• Physical branch locations only available in 9 states
• Current mortgage rates aren’t available on website

Click here to check rates with Paramount Bank or to apply online

#5. LoanDepot: Best Customer Service

LoanDepot is a mortgage lender that first launched in 2010. Since its beginnings, the company has grown significantly, assisting more than 27,000 customers nationwide each month.

Loan Details

LoanDepot offers several types of mortgages, including:

• Fixed-rate mortgages
• Adjustable-rate mortgages
• FHA loans
• Jumbo loans
• VA loans
• 203k loans

The company is a mortgage lender approved by the Department of Veterans Affairs, allowing it to provide authentic VA loans for military members, veterans, and their spouses.

You can apply for a mortgage or refinancing loan through LoanDepot. If you decide to take out a VA loan through the lender, you can also make payments directly on the loanDepot website.

Reputation

Since its origins in 2010, LoanDepot has made a name for itself in the VA lending industry. The company has helped fund over $275 billion worth of loans, including $96 billion in mortgages. It has received numerous positive reviews from customers detailing its excellent customer service, fair lending practices, and affordable loan rates.

Unique Selling Points

LoanDepot strives to make the home mortgage process as simple as possible. You can get started by using the no-obligation calculator on the LoanDepot website to calculate your loan costs. Simply enter your desired home price, loan term, interest rate, and down payment to see your estimated mortgage amount and cost.

The lender also has a Knowledge Cafe on its website with valuable information about VA loan rates, the mortgage process, and how to purchase a home. This page is divided into categories, allowing you to easily find the right article for your needs.

If you'd prefer direct, hands-on assistance from the lender, you can work with a LoanDepot loan officer. You can even visit your loan officer at a physical branch to discuss your loan options face-to-face.

Overall, if you're looking for a lender with extensive industry experience, we recommend LoanDepot.

Pros

• 200+ nationwide locations
• Direct mortgage lender
• Low loan interest rates and fast approval
• Federal and state licensed in accordance with the federal government's S.A.F.E. Act

Cons

• Have to speak with a loan advisor before seeing interest rate
• No home equity loans or lines of credit

Click here to check rates with loanDepot or to apply online

What Is a VA Home Loan?

Joining the military comes with numerous benefits that last the rest of your life. One of them is VA loans.

A VA loan is a mortgage loan available through the U.S. Department of Veterans Affairs (VA). These loans help military members, veterans, and their spouses purchase homes by providing up to 100% financing on the total value of a house.

The VA dictates the qualifying standards, terms, and mortgage offers of VA loans but does not actually finance these loans. Instead, private lenders — such as those on our list — finance the loans according to the VA's terms.

VA loans offer several advantages over conventional mortgages:

• They are among the few mortgages that do not require a minimum down payment.
• Borrowers do not need to obtain private mortgage insurance (PMI) to qualify for these loans, making them more affordable than conventional loans.
• They come with a government guarantee, meaning that the government will repay a portion of the loan to the lender if the borrower fails to.
• They have no prepayment penalty.
• They have more generous eligibility requirements than conventional loans.
• They have lower closing costs than conventional loans.
• They are assumable, meaning borrowers can transfer them to future buyers eligible for VA loans.

All in all, if you qualify for a VA loan, taking advantage of this military benefit can be highly advantageous.

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How We Ranked the Top VA Loan Lenders of March 2022

As we mentioned, the Department of Veterans Affairs does not offer VA loans directly to borrowers. Instead, private lenders such as banks, credit unions, and other financial institutions obtain approval from the VA to offer VA loans to customers. It's up to you to choose the best VA mortgage lender for your needs.

When we ranked the best VA mortgage lenders, we reviewed the following criteria that indicate a lender's quality and reliability.

Lender Reputation

A lender's reputation in the lending industry can say a lot about its overall trustworthiness. You can identify a lender's industry reputation by reviewing the following:

• Better Business Bureau ratings and reviews
• Customer reviews
• Awards and recognitions
• Years in business

All of these factors can contribute to a lender's overall quality. After reviewing dozens of VA lenders, we found that the five options that we added to our list have the best reputations.

Origination Fees

Lenders typically charge origination fees when providing loans to borrowers. An origination fee is an upfront processing fee that many lenders deduct from the total borrowed amount.

The VA places a cap on the origination fees VA lenders can charge their customers. As a result, lenders can only charge up to 1% in origination fees. Alternatively, they can choose to charge up to 1% in itemized "reasonable and customary" fees. You should check with your lender to determine what fees and closing costs it charges before borrowing through it.

While 1% is the maximum origination fee on VA loans, many lenders charge below this amount. When we compiled our list of the best VA mortgage lenders, we included ones with affordable origination fees that are generally below 1%.

Interest Rates

Another critical factor to consider when examining a mortgage offer is the interest rate. Your interest rate is the percentage of the loan you will need to pay back on top of the original loan amount.

The VA does not control interest rates on VA loans. As a result, VA loan interest rates can vary significantly from lender to lender. This is one of the primary reasons you should compare all of your options before settling on a VA lender.

The exact interest rate that a lender will charge you depends on your loan amount, repayment terms, credit score, debt-to-income ratio, and down payment (if you decide to pay one). Additionally, many lenders change their interest rates frequently.

However, when we created this list of the top VA loan lenders, we made sure to choose ones with fair interest rates overall. You can feel confident borrowing through any of the lenders on our list, but we recommend that you compare VA loan rates from each to determine the best deal.

Online Application Process

Buying a house can be stressful and overwhelming, and your VA loan application shouldn't add to your stress. Our list includes lenders with easy, straightforward application processes, ensuring that your mortgage application does not take too much time.

Most lenders on our list offer online applications, allowing you to submit your loan request and financial information right from a smartphone or computer. However, most of these lenders also have in-person credit union or bank branches where you can sit down with a loan officer, discuss your loan terms, and fill out a physical application.

Along with online applications, many of the lenders on our list also offer digital loan management platforms. These platforms allow you to make loan payments, view your remaining balance, and chat with a representative online.

User Reviews

Finally, we read numerous user reviews of VA lenders before deciding on the five lenders to add to our list. User reviews can provide firsthand information about a lending experience. They can help you understand a lender's professionalism, lending processes, affordability, and overall trustworthiness.

Many lenders include transparent user reviews on their websites, allowing you to read numerous customer opinions in one place. However, you can also check websites like the BBB to read more detailed customer complaints and identify previous customers' issues with a lending company.

Requirements for Veteran Home Loans

To qualify for a VA loan, you must meet specific eligibility requirements from the U.S. Department of Veterans Affairs (VA). You will need to receive a Certificate of Eligibility from the VA that showcases your eligibility for a VA loan, then present this certificate to your lender.

At least one of the following requirements must apply to you to qualify for the VA home loan program:

• You must have served at least 90 total days in active wartime.
• You must have served at least 181 continuous days during peacetime.
• You must have served at least six creditable years in the National Guard or Reserve.

You may still qualify if you did not meet the minimum active-duty service requirement because you were discharged for a service-connected disability. You can read more detailed service requirements on the VA website.

Additionally, you may be able to receive a Certificate of Eligibility if you are the spouse of a veteran who died in the line of duty, passed away as a result of a service-related disability, or is missing in action.

If you're unsure of your eligibility for a VA mortgage, you can always call the VA directly to discuss your eligibility or request a COE from the eBenefits VA site.

Advantages of Getting a VA Mortgage

VA loans offer several advantages for home buyers. If you're considering a VA loan, here are the benefits you can expect to receive.

Affordability

VA loans typically offer competitive mortgage rates compared to traditional mortgages and home equity loans. While the VA does not dictate VA mortgage rates, it places a 1% origination fee cap on these loans. Additionally, closing costs and VA loan funding fees tend to be pretty affordable overall.

However, VA loans also tend to be more affordable because they do not include private mortgage insurance premiums or require a down payment. These benefits can make VA mortgages more affordable for borrowers who may not have a lot of savings to contribute to a mortgage.

Generous Approval Terms

VA loans are generally easier to qualify for than conventional loans if you meet the eligibility requirements above.

The VA does not impose a minimum credit score requirement that you must meet to qualify for a VA loan. However, each credit union, bank, or financial institution may have its own minimum credit score requirements. Generally, you'll want to have a minimum credit score between 580 and 620 to qualify for a VA mortgage.

Some VA lenders review alternative credit data to determine your VA mortgage rates and eligibility. This alternative credit data may include your bank statements, income, employment information, and other consumer banking data.

Flexibility in Loan Options

If you qualify for a VA loan, you can choose from a wide range of loan products. Many of the lenders on our list offer home equity loans, home equity lines of credit, jumbo loans, fixed interest loans, streamline loans, and more.

You don't simply need to agree to a strict VA loan term to take advantage of this offer —instead, you can spend time comparing your options and making the best choice.

Refinancing Options

If you already have a mortgage through a conventional lender or VA lender, you may be able to refinance your mortgage with a VA loan. Several lenders on our list offer cash-out refinance loan options that you can use to pay off home equity loans and home equity lines of credit or simply refinance your mortgage.

These VA refinance loans often have better rates and terms than traditional refinance loans. As a result, if you are considering refinancing your mortgage, we recommend using your VA benefits to reduce your costs.

Tips for Finding the Best VA Mortgage Rates

Before you proceed with a VA mortgage lender, you should take time to review all of your loan options and choose the one with the most affordable mortgage rates. You'll probably be paying back your mortgage for 10, 15, or even 30 years, and having affordable interest rates can save you a significant amount of money in the long run.

Here are a few tips for finding the most affordable VA mortgage rates:

Know Your Financial Situation

Knowing your finances before you begin applying for loans can help you understand what you can afford and what mortgage rates to expect.

First, you should consider your monthly income and how much you can dedicate to a mortgage. Many finance experts recommend spending up to 30% of your gross income on housing each month. However, depending on your other expenses, you may be able to afford more or less than this amount.

You should also take a look at your credit history and credit score. If you have any negative items on your credit report, such as bankruptcy or late payment, you may not receive as favorable mortgage rates. If your credit score is too low, such as below 580, you may want to hold off on applying for a loan until you can increase it a little.

Request a Quote From Several VA Mortgage Lenders

Many VA mortgage lenders allow you to fill out a short quote form on their websites. These forms typically request information about your:

• Desired loan amount
• Desired repayment terms
• Financial situation
• Credit score
• Home purchase (primary residence, secondary home, vacation home, etc).
• Alternative credit data (bank statements, income, etc.)

These forms do not impact your credit score, as they only include a soft credit check. As a result, we recommend filling out several quote forms to better understand your potential rates before applying for a loan.

Look for the Best VA Mortgage Lenders for Your Situation

Finally, if you know that you have a low credit score or a low budget, we recommend looking for the best VA mortgage lenders that suit your specific situation. Some mortgage lenders offer loans for people with bad credit.

Frequently Asked Questions

Are There Any Downsides to VA Loans?

Like any loan option, there are both advantages and disadvantages to VA loans.

VA loans sometimes come with a few unique lender fees that other mortgages do not include. For example, you may need to pay a VA funding fee. This VA funding fee is a one-time payment on your loan that helps lower the cost of the loan for taxpayers.

Depending on your specific loan terms, this VA loan funding fee may be around 2.3% of your borrowed amount, though it may be less if you opt for a down payment.

Additionally, you'll still need to pay a few common lender fees on most VA loans. These lender fees can include origination fees, closing costs, etc. While these lender fees may be lower than fees for traditional loans, they can sometimes add up to make your loan more expensive than a conventional mortgage.

Finally, VA loans come with a few contingencies. For example, with a VA loan, you cannot waive the inspection or appraisal to make your loan offer more appealing. You can also only use your VA loan benefit to purchase a primary residence, not for secondary homes or as renovation loans.

We recommend talking to a qualified lender about all of your loan options, then determining whether a VA loan is your best option.

Are VA Loans Better Than Conventional Loans?

In many ways, VA loans are more affordable than conventional loans. However, these loans may not be the best option for some people.

Because the VA does not control VA loan rates, lenders can still charge high interest rates. You'll need to do your due diligence to find the best VA mortgage lender rates.

While VA loans do not require a minimum down payment, they may not be the most affordable option for borrowers with lower credit scores. If you do not have a shining credit report, you may want to also consider mortgages with down payment assistance programs, as these can make your loan more affordable upfront.

How Long Does It Take to Close on a House with a VA Loan?

When you use a VA loan to fund a home purchase, you can expect closing to take 40 to 50 days. This timeline is pretty standard within the mortgage industry.

What Are the Down Payment Requirements on a VA Home Loan?

VA loans do not have any minimum down payment requirements. As a result, if you'd rather not put any money down on your VA loan, you don't need to.

However, if you can afford a minimum down payment, putting at least a bit of money down can reduce your loan costs. The money you pay upfront on your loan is money you will not have to repay with interest over time. As a result, the higher your down payment, the less you pay long-term.

You can also consider applying for down payment assistance programs if you cannot afford a minimum down payment but want to reduce your loan costs.

Can You Get a VA Mortgage if You Have Bad Credit?

You may be able to qualify for a VA loan if you have a low credit score. The VA does not impose any minimum credit score requirements on VA loans, so it's up to each lender to determine its credit score criteria.

While every lender has its own minimum credit score requirement, most lenders require a minimum credit score of at least 620. If your credit score falls below this minimum, you may need to search for other loan products or spend time increasing your credit score before applying.

What Are the Interest Rates on VA Loans?

Each VA lender determines its own interest rates. However, you can typically expect your interest rates to fall between 4% and 5% for these loans. Keep in mind that APR is different from interest. APR encompasses the fees and other costs included in the loan, making it higher than the interest rate.

Final Thoughts

Overall, if you are a veteran, active military member, or military spouse, taking out a VA loan could save you some money on a home mortgage. These loans offer several advantages over conventional loans, making them more affordable and convenient for many borrowers.

However, depending on your credit score and financial situation, another mortgage option may be better overall. We recommend considering different home loan products and comparing the benefits and downsides of each before making your final decision.

*This article is provided by an advertiser and not necessarily written by a financial advisor. Investors should do their own research on products and services and contact a  financial advisor before opening accounts or moving money. Individual results will vary. Foreign companies and investment opportunities may not provide the same safeguards as U.S. companies. Before engaging with a company, research the laws and the regulations around that service, and make certain the company is in compliance. For comprehensive guidance on U.S. investments and financial regulations, visit the Securities and Exchange Commission (SEC)’s Investor.gov.