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
LendEDU’s 5 Best VA Lenders
1) Veterans United
Get a quote from The Nation’s #1 VA Lender
- See if you meet the requirements to use your hard-earned VA Loan benefits
- Turn your military service into savings with a $0 Down VA Loan
- Get a snapshot of what your monthly payments could be with a VA Loan
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%
2) loanDepot
Home Mortgage, Refinance, and Home Equity Loans
- Fixed terms
- Affordable monthly payments
- Cash out up to 90% loan-to-value
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
3) New American Funding
Your Mortgage, Your Terms.
- Get pre-approved in as little as 48 hours
- Complete the entire application process online
- Choose from a wide variety of mortgage options
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
4) Citizens Bank
Here to help make your dream home a reality.
- 1 -on- 1 Support – Navigate the home buying process with confidence
- Painless Process – Go from application to closing easier with secure document exchange
- No Surprises – Always know what to expect at each step of the process
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
5) Rocket Mortgage by Quicken Loans
A simpler way to buy a home or refinance.
- Apply Online – Streamlined application available 24 hours a day, 7 days a week
- Use RateShield Approval and lock in your interest rate for up to 90 days
- Home Loan Experts available seven days a week to answer your questions
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%
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:
- BBB Rating (10%)
- Trustpilot Rating (5%)
- States Available (5%)
- Lender Fees (12.5%)
- Application Fees (12.5%)
- Online Application (5%)
- Fixed Terms (15%)
- 30 Year APR (10%)
- Customer Service (20%)
- Zillow Rating (5%)
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.
To qualify for a VA home loan:
- You must meet military service requirements, including serving 90 consecutive days of active duty during wartime or 181 consecutive days during peace-time; membership in the National Guard or Reserves for at least 6 years; or marriage to a service-member who died while serving or because of a service-connected disability.
- There is no minimum credit score required by the VA, although many lenders require a minimum credit score between 500 and 580. If your credit score is lower, the lender may require a down payment.
- You must be purchasing a primary home and have plans to move into the home within 60 days.
You can make a down payment on a VA Loan, even if it’s not required. Making a down payment could lower your VA funding fee and reduce the total interest that you pay over time.
The loan limits for a VA loan vary by county:
- You can borrow up to $484,350 in most areas for 2019.
- You can borrow up to $726,525 in certain high-priced areas in 2019.
You will have to pay a one-time funding fee for a VA loan that varies based on the amount of your down payment and your history of military service.
Yes, you can refinance a VA mortgage without losing VA status (provided the lender issuing the refinance loan participates in the VA program). See our list of the best mortgage refinance companies.
There are other first-time homebuyer programs that offer loans and downpayment assistance in addition to VA loans. These other options include:
- FHA Loans: These are backed by the Federal Housing Administration. You can make a low down payment of just 3.5% and qualify with a credit score as low as 500 or 580. See our list of the best FHA lenders.
- USDA Loans: These home loans are backed by the United States Department of Agriculture. They also have low down payment and credit score requirements and are primarily intended to help you buy homes in rural locales.
- State & Local Programs: The Department of Housing and Urban Development (HUD) works with state and local governments to help low-income or moderate-income home buyers, as well as first-time buyers, obtain home loans.
If one of the options listed above doesn’t meet your needs, you can check out the best mortgage lenders rated by LendEDU. To learn more about veterans’ options, check out our Home Buying for Veterans guide.