Best VA Lenders: 0% Down Payments for Veterans

When you purchase a home, most mortgage lenders want you to make a down payment between 10% and 20% of the home’s purchase price. Your down payment ensures you have some equity in the home, or in other words, some skin in the game.

Not all home loans require a big down payment however. VA home loans are intended to make homeownership accessible to current and former military members, and they allow you to buy a home with no money down at all.

We’ve analyzed the top VA loan lenders on the market to help you find the best VA loan when buying your first home.

On this page:

• LendEDU’s 5 Best VA Lenders
• Other Places to Look for VA Loans
• Pros & Cons of VA Lenders
• Frequently Asked Questions about VA Loans

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LendEDU’s 5 Best VA Lenders

1. Veterans United
2. loanDepot
3. New American Funding
4. Citizens Bank
5. Rocket Mortgage

1) Veterans United

Veterans United is the largest VA lender in the United States. The lender also offers conventional, jumbo, and FHA loans, even as it caters extensively to military members and former service members.

Veterans United makes it easy to pre-qualify for a loan online and also provides 24/7 customer service from advisors in different branches of the armed forces for those who need extra help with the home-buying process.

Here’s what you need to know about Veterans United’s VA mortgage program:

Ratings

• LendEDU Rating: 5.00 / 5.00
• Better Business Bureau Rating: A-

Lender Info

• States available: 50
• Loan terms: 15 or 30 years
• Minimum down payment: 0%
• Origination fee: Up to 1%

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2) loanDepot

LoanDepot is one of the largest providers of both VA and FHA loans in the United States, and it offers conventional loans as well.

You can complete most of the application process online, or you can get face-to-face support in one of more than 150 different locations throughout the country.

Here’s what you need to know about loanDepot’s VA mortgage program:

Ratings

• LendEDU Rating: 4.88 / 5.00
• Better Business Bureau Rating: A-

Lender Info

• States available: 50
• Fixed terms: 15 or 30 years
• Minimum down payment: $0
• Origination fee: 1% – 5%

Full Review: loanDepot Mortgage Review

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3) New American Funding

New American is family-owned, but it still provides home loans throughout the country. The lender not only caters to service members looking for VA loans but also provides other government-backed loans including FHA and USDA Loans.

You can upload most documents online during the mortgage loan approval process and can get to closing quickly compared with most conventional lenders.

Here’s what you need to know about New American’s VA mortgage program:

Ratings

• LendEDU Rating: 4.86 / 5.00
• Better Business Bureau Rating: A+

Lender Info

• States available: 48
• Fixed terms: Up to 30 years
• Minimum down payment: 0%
• Prepayment Fee: $0

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4) Citizens Bank

Citizens Bank provides a wide variety of consumer banking and financial products, including not just VA loans but also other types of mortgages and student loans.

It has more than 1,200 local branches spread across the country so getting in-person support is easy if you need help applying for your VA loan.

Here’s what you need to know about Citizen’s Banks’ VA mortgage program:

Ratings

• LendEDU Rating: 4.40 / 5.00
• Better Business Bureau Rating: A+

Lender Info

• States available: 50
• Fixed terms: 15 or 30 years
• Minimum down payment: 0%
• Origination fee: Not disclosed

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5) Rocket Mortgage by Quicken Loans

Rocket Mortgage is a non-bank lender that provides the opportunity to complete your entire mortgage application process online. In addition to offering VA loans, you can also qualify for other government-backed loans with this lender including FHA and USDA Loans.

You do not have to talk with a representative to get a loan and can get pre-qualified quickly within minutes.

Here’s what you need to know about Rocket Mortgage’s VA mortgage program:

Ratings

• LendEDU Rating: 4.23/5
• Better Business Bureau Rating: A+

Lender Info

• States available: 50
• Fixed terms: Up to 30 years
• Minimum down payment: 0%
• Funding Fee: 1.25% – 3.30%

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How We Chose the Best VA Loan Lenders

LendEDU picked the best VA loan lenders by using a weighted average of 10 data points. The data points considered include:

We then pared down the list to only include lenders that made VA loans available throughout the country and that did not require membership in order for a would-be borrower to obtain a loan.

Other Places to Look for VA Loans

The lenders above offer the best VA loans available to qualifying military members or veterans throughout the country. They don’t include any lenders where membership is required, which makes them a great place to start your search for a VA mortgage loan.

However, it is possible that you will find competitive VA mortgage interest rates from other lenders, too. We’ve got some tips below on where else you can look for affordable VA loans.

Navy Federal Credit Union

Navy Federal Credit Union is one of the largest military-focused credit unions in the country. Membership is required, and it may be worthwhile if it helps you qualify for a lower interest rate.

Here’s what you need to know about Navy Federal’s mortgage loans:

Ratings

• LendEDU rating: 4.83 / 5.00
• Better Business Bureau rating: A+

Lender Info

• States available: 50
• Fixed terms: 10 – 30 years
• Minimum down payment: 0%
• Membership: Required

If you are already a member of Navy Federal Credit Union or if you are willing to join, you may be able to get a mortgage loan at an even better interest rate than you could obtain with our best nationwide lenders.

Full review: Navy Federal Credit Union Mortgage Review

Local Banks

It can also be a good idea to check mortgage interest rates and terms with small regional banks—especially if you already have a relationship with a particular financial institution.

Although small local banks may not have a VA loan program as expansive as the lenders above, they may be more willing to give you a loan at a competitive interest rate if you already do business with them.

Pros & Cons of VA Lenders

It is important to consider the advantages and disadvantages of getting a VA-backed loan from an approved VA lender. Here are a few things to consider when deciding what type of mortgage is best for you.

Pros

• You aren’t required to make a down payment. Many conventional lenders require at least 10% to 20% down, although some allow down payments as low as 3% or 3.5%. The VA doesn’t require a down payment for its insured home loans.
• Sellers can help with closing costs. This is often not permitted on conventional mortgages, and it can help you save money when negotiating the home purchase price.
• Qualifying is much easier. You can usually get a VA loan with a credit score as low as 580, compared to the minimum credit score of 620 that most conventional lenders require.
• You don’t have to pay PMI. With conventional mortgages, borrowers who put down less than 20% usually have to pay for private mortgage insurance, which can add hundreds to your monthly payment.
• You can finance a fixer-upper. VA home improvement loans can be used to purchase a renovation project or to facilitate qualifying improvements to your current home, such as bringing it up to local living standards.

Cons

• No down payment means more interest. If you put down a lower down payment, you will have to borrow more and pay more interest on that debt over time.
• You could go underwater. A low down payment or no down payment puts you at risk of owing more than the home is worth if the home’s value declines. This is could make selling the home impossible.
• No second homes or investment properties. You can only get a VA loan for a primary residence.
• Fees. There’s an upfront funding fee that could make your loan more expensive than some alternatives.

Frequently Asked Questions about VA Loans

Here are the answers to some other questions you may have about VA loans and VA-approved lenders.