The top VA loan lenders for September 2024.
Zero-down-payment mortgages are available to active-duty service members and veterans, backed by the U.S. Department of Veteran Affairs. These VA loans also offer lower rates, flexible credit score requirements, and no private mortgage insurance.
VA loan lenders were evaluated by CNBC Select and the top providers were chosen in various categories. (For more details, see our methodology.)
Best for low rates: Navy Federal Credit Union
Navy Federal's VA loan rates are consistently below the industry average, even though VA loan rates are generally lower than conventional mortgage rates.
Navy Federal's Military Choice loan offers a zero-down mortgage option, allowing sellers to contribute up to 6% of the home's value towards closing costs. Additionally, for a one-time $250 fee, borrowers can lower their rate without refinancing.
Best for low credit scores: Guild Mortgage
Guild Mortgage is a lender that accepts borrowers with a 540 credit score, which is lower than the 620 most VA lenders require. Additionally, Guild considers non-traditional credit sources, such as rent and utility payments, for borrowers with thin or non-existent credit history.
VA loans have a higher debt-to-income ratio limit of 45%, compared to many lenders.
Best for customer service: Veterans United
If you prioritize good service, Veterans United is a solid option for VA loans. It earned an A+ from the Better Business Bureau and received the highest score of any lender on J.D. Power's 2023 Mortgage Origination Study, which covers the entire loan process from application to closing day.
Veterans United offers free credit counseling to help you improve your score before applying.
Best for no origination fees: PenFed Credit Union
PenFed Credit Union does not charge origination fees, which can amount to up to 1% of your VA loan total.
You may receive a closing credit of up to $1,500 when purchasing your home through PenFed's real estate agent network.
Best for VA jumbo loans: USAA
For those seeking to purchase a high-value property, USAA offers VA loans with a maximum approval limit of $3 million.
Standout benefits: USAA doesn't charge origination fees on VA loans.
Best in-person experience: Chase Bank
If you prefer in-person banking, Chase Bank has the most U.S. branches with over 4,000 locations.
Eligible VA loan applicants can receive a $2,000 closing credit from Chase, and if their closing is delayed, they may be eligible for an additional $5,000.
Best for applying online: Rocket Mortgage
If you want to apply for a mortgage from the comfort of your home, Rocket Mortgage is an excellent choice. This online lender provides a top-notch web experience, exceptional customer service, and allows for remote closing in certain locations.
Purchasing a home through Rocket Homes could result in receiving up to $10,000 in closing credit, which is equivalent to 1.25% of the loan amount.
More on our top mortgage lenders for VA loans
Navy Federal Credit Union
Since its establishment in 1933, Navy Federal Credit Union has expanded from serving only Navy Department employees to being the largest credit union in the U.S., accepting all active duty service members, veterans, Reservists, Department of Defense employees, and their immediate family members.
Nationwide availability: Available in all U.S. states and Washington D.C.
Types of mortgages: Conventional, VA, jumbo, refinancing
Minimum credit score: Not disclosed
Minimum down payment: 0% for VA loans
Guild Mortgage
Guild Mortgage, headquartered in San Diego, boasts over 200 branches in 32 states. The company was ranked No. 4 on J.D. Power's 2024 Mortgage Servicer Customer Satisfaction Survey and received an A+ from the Better Business Bureau.
Nationwide availability: Available in all U.S. states except New York
Types of mortgages: conventional, USDA, VA, FHA, jumbo, refinancing, home equity, HELOC, reverse mortgage.
Minimum credit score: 540 for VA loans
Minimum down payment: 0% for VA loans
Veterans United Home Loans
Since 2016, Veterans United has been the largest provider of VA loans in the U.S. and received the highest score on J.D. Power's 2023 U.S. Mortgage Origination Satisfaction Study. Additionally, it was given an A rating from the Better Business Bureau.
Nationwide availability: Available in all U.S. states and Washington D.C.
Types of mortgages Conventional, FHA, VA, USDA, jumbo, refinancing
Minimum credit score: 620 for VA loans
Minimum down payment: 0% for VA loans
PenFed Credit Union
Although it's called Pentagon Federal Credit Union, or PenFed, anyone in the US can join by making a $5 minimum deposit. As the third largest credit union in the country, it provides a range of loans, accounts, credit cards, and financial services.
Nationwide availability: Available in all U.S. states and Washington D.C.
Types of mortgages: Conventional, FHA, VA, jumbo, refinancing
Minimum credit score: 620 for VA loans
Minimum down payment: 0% for VA loans
USAA
USAA, a financial services provider, offers insurance, investing, and banking services to current and former military members. It is one of the largest lenders of VA loans by volume. Despite receiving the highest score on J.D. Power's 2022 U.S. Mortgage Origination Satisfaction Study, USAA was not included in the 2023 survey.
Nationwide availability: Available in all U.S. states and Washington D.C.
Types of mortgages: Conventional, VA, jumbo, refinancing
Minimum credit score: 640 for for VA loans
Minimum down payment: 0% for VA loans
Chase Bank
The Bank of the Manhattan Company, founded in 1799 by Aaron Burr, evolved into JPMorgan Chase and is now the largest retail bank in the U.S. Chase's home loan division consistently earns above-average scores on J.D. Power's mortgage satisfaction surveys.
Nationwide availability: Available in all 50 states and Washington, D.C.
Mortgage options: conventional, FHA, VA, DreamMaker, jumbo, refinancing, home equity loan.
Minimum credit score: 620 for conventional, 500 for FHA
The minimum down payment for VA loans is 0%, while it is 3% for DreaMaker and 3.5% for FHA.
Rocket Mortgage
In 2023, Rocket Mortgage, the second largest mortgage lender in the U.S., originated 289,000 home loans worth $78 billion. With Rocket, verified approval can be obtained in as little as two hours and closings take an average of 22 days, which is significantly faster than the industry average.
Nationwide availability: Available in all 50 states and Washington, D.C.
There are various types of mortgages available, including conventional, FHA, VA, HomeReady, Home Possible, Rocket ONE+, jumbo, refinancing, and home equity loans.
Minimum credit score: 620 for conventional, 500 for FHA
The minimum down payment for a VA loan is 0%, while for a Rocket ONE+ loan it is 1%, and for an FHA loan it is 3.5%.
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What is a VA loan?
No down payment and more favorable rates and credit requirements are offered to active and former service members through VA loans, which are guaranteed by the U.S. Department of Veterans Affairs but issued by private lenders.
VA loans have limited closing costs and do not penalize borrowers for prepayment. Instead of mortgage insurance, a funding fee is typically required.
A VA loan can be utilized for various purposes, including purchasing or constructing a primary residence, refinancing an existing mortgage, or financing home renovations.
Who qualifies for a VA loan?
Eligible individuals for VA loans include U.S. military personnel, veterans, Reserves and National Guard members, as well as some surviving military spouses.
Eligibility for the National Guard, Reserves, and veterans varies, and active-duty service members must serve for at least 90 continuous days. To determine the specific requirements, you can visit the VA website. Additionally, you may need a statement of service signed by your commanding officer.
To be eligible for a VA loan, all applicants must provide a Certificate of Eligibility confirming they have met the service requirements, and this document cannot indicate a less-than-honorable discharge. If you are no longer in active service, you will need to provide a copy of your discharge paperwork.
Lenders typically prefer a credit score of 620 and a debt-to-income ratio of 41% or less for VA loans, although the VA doesn't have specific requirements.
Other requirements include:
- The home must serve as your primary residence
- It must pass a Department of Veterans Affairs appraisal
- You must have two years of consistent employment
VA loan funding fee
The funding fee for VA loan borrowers is determined by two factors: whether it's their first time using a VA loan and the size of their down payment. Here's how these fees will be calculated.
- First-time VA loan borrowers pay a funding fee of 2.15% of the loan total, while repeat borrowers pay 3.3%.
- In all cases, you'll pay a funding fee of 1.50% of the loan total as a down payment of 5% to 10%.
- In all cases, you'll pay a funding fee of 1.25% of the loan total if you make a down payment of 10% or more.
How to apply for a VA loan
Follow these steps to get started applying for a VA loan
- Check if you qualify for a VA loan.
- You can obtain a Certificate of Eligibility through the VA eBenefits web portal, by mailing your regional VA loan center or from a VA-approved lender.
- Not all private lenders offer VA loans, but a variety of them do.
- Your lender will assist you in completing the loan application and provide guidance on the required documents.
- Your lender will review your application to assess your credit and income qualifications, and you will need a Department of Veterans Affairs appraisal to determine the property's value.
Pros and cons of VA loans
Why trust CNBC Select?
Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions with their money. Each mortgage review is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of home loan products. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently by our team without any input from our commercial team or external third parties. To learn more about our methodology for selecting the best VA loans, please refer to our methodology page.
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Our methodology
We analyzed numerous U.S. mortgage providers, including online lenders and traditional banks and credit unions, to identify the top lenders for VA loans.
When ranking the best VA mortgages, we focused on the following features:
- Not all mortgage lenders offer VA loans. We evaluated each lender's VA loan volume in recent years.
- Our list of lenders provides closing timelines ranging from two weeks to 45 days after the home purchase agreement is signed.
- Each mortgage lender offers a range of financing options that you can tailor to your monthly budget and repayment term preferences.
- We evaluated whether lenders provided a user-friendly online application process or local branch options for a hassle-free application.
- Our list of mortgage lenders offers customer service through phone, email, or secure online messaging. Additionally, we selected lenders with an online resource hub or advice center to assist you in understanding the personal loan process and managing your finances.
We ranked our recommendations based on several criteria, including customer service, low rates, suitability for borrowers without a credit score, absence of origination fees, VA jumbo loans, speedy closing, in-person experience, and online experience.
We took into account CNBC Select audience data, including demographics and engagement with our content and tools, when possible.
The mortgage rates and fee structures cited here may fluctuate with company policy.
