Key Takeaways
Veterans United is the best overall VA lender, offering VA loan expertise, competitive rates and strong customer reviews. Other top picks include Rocket Mortgage, best for refinancing, and Pennymac, the best online VA lender.
- VA loans are available only to eligible U.S. military service members, veterans and their spouses.
- You or your spouse must meet specific military service requirements to qualify for a VA loan. The length-of-service requirement varies based on when you or your spouse served and in what capacity.
- VA loans tend to have lower interest rates than other loan options and don't require a down payment or private mortgage insurance, although they may need to pay a funding fee.
- Methodology: We reviewed more than 30 of the largest VA lenders, evaluating them on six key data points: product variety (20%), average interest rates (20%), reputation and regulatory issues (20%), credit score minimums (20%), term options (10%) and geographic availability (10%).
Our top picks for the best VA loan lenders of May 2026
- Veterans United: Best Overall
- Rocket Mortgage: Best for Refinancing
- Pennymac: Best Online Lender
- CrossCountry Mortgage: Best for Building or Repairing a Home
- PenFed: Best Credit Union
- New American Funding: Best for Low Credit Borrowers
- Rate: Best for Low Fees
- Navy Federal Credit Union: Best for Overseas Service Members
Best VA loan lender company reviews
Pros
- VA loan specialists
- Very competitive interest rates
- Strong reviews and ratings
- Has advertised rates to help you gauge costs
Cons
- Credit score requirement could be lower
- No adjustable-rate loans
HIGHLIGHTS
- Loan products
- Purchase, IRRRL, cash-out refinancing, jumbo
- Terms
- 10, 15, 20, 25 and 30 years
- Credit score minimum
- 620
- Geographic availability
- 50 states
Why we chose it: Veterans United tops our list of best VA lenders. The lender specializes in VA loans, and its loan officers bring years of experience to the application process. Veterans United offers a variety of loan programs, a substantial library of educational resources geared toward veterans and had the lowest sample interest rate among all lenders during our review period. The lender also ranks high in customer service among independent ranking services.
Pros
- Competitive interest rates
- Lots of loan and term options
- Serves all 50 states
- Low credit score requirements
- Strong Trustpilot rating
Cons
- 2 regulatory actions in last five years
- No physical locations
- Low BBB reviews
HIGHLIGHTS
- Loan products
- Purchase, IRRRL, cash-out refinancing, jumbo
- Terms
- 15, 20, 25 and 30 years; 5/1 ARMs
- Credit score minimum
- 580
- Geographic availability
- 50 states
Why we chose it: Whether you need to reduce your interest rate or take cash out of your home equity, Rocket Mortgage’s VA refinancing options can help you do it. The company also boasts a wide range of loan terms, low average interest rates and a mere 580 credit score minimum.
Pros
- Competitive interest rates
- Serves all 50 states
- Low credit score requirements for purchase loans
- Has advertised rates to help you gauge costs
Cons
- No physical locations
- Limited loan and term options
HIGHLIGHTS
- Loan products
- Purchase, IRRRL, cash-out refinancing
- Terms
- 10 to 30 years
- Credit score minimum
- 580 (purchase), 620 (cash-out)
- Geographic availability
- 50 states
Why we chose it: If you’re looking for a quick and easy online VA loan experience, Pennymac can help. The online lender offers both refinancing and purchase options, and offers competitive interest rates on both products. Its credit score minimum is also quite low.
Pros
- Lots of loan and term options
- Serves all 50 states
- Low credit score requirements
Cons
- 2 regulatory actions in last five years
- Higher average interest rates than many competitors
- Low Truspilot and BBB ratings
HIGHLIGHTS
- Loan products
- Purchase, IRRRL, cash-out refinancing, renovation, one-time-close construction
- Terms
- 15, 20, 25 and 30 years
- Credit score minimum
- 500
- Geographic availability
- 50 states
Why we chose it: VA renovation and construction loans aren’t offered by most lenders, but CrossCountry Mortgage boasts both. Use one to renovate your existing house, buy a fixer-upper and roll the repair costs into a single loan, or build your dream home from the ground up. The lender’s ultra-low credit score requirements and many loan terms are the icing on the cake.
Pros
- Lowest average interest rates of all lenders analyzed
- Serves all 50 states
- Has advertised rates to help you gauge costs
Cons
- Limited loan and term options
- Credit score requirement could be lower
- Must become a member
- Average-to-poor reviews on BBB and Trustpilot
HIGHLIGHTS
- Loan products
- Purchase, IRRRL, jumbo
- Terms
- 15 and 30 years
- Credit score minimum
- 620
- Geographic availability
- 50 states
Why we chose it: Credit unions are known for having low rates — and PenFed is no different. PenFed offered some of the lowest average interest rates throughout our evaluation period, with APRs starting in the low-5% range. PenFed also serves all 50 states and doesn’t require membership when applying for a loan, although you will have to become a member before closing on the loan. Anyone can join PenFed by opening a savings account with an initial deposit of $5, though.
Pros
- Low credit score requirements
- Serves all 50 states
- Lots of loan options
- Strong reviews and ratings
Cons
- 2 regulatory actions in last five years
- Middle-of-the-road interest rates
HIGHLIGHTS
- Loan products
- Purchase, IRRRL, cash-out refinancing, construction
- Terms
- 15-30 years for fixed-rate; 5/1 ARMs
- Credit score minimum
- 500
- Geographic availability
- 50 states
Why we chose it: The VA doesn’t have hard credit score requirements for its loans, but individual lenders can set their own thresholds. And New American Funding? They’ve set theirs low. The lender accepts credit scores as low as 500, and there are even options for borrowers with no credit. NAF is also known for its great service, boasting a 4.8 rating on Trustpilot, a 4.6 on BBB and a 4.9 rating on Zillow.
Pros
- No origination fees
- No minimum credit score required
- Competitive interest rates
- Fast closings
Cons
- No adjustable-rate loans
- Limited loan terms
HIGHLIGHTS
- Loan Products
- Purchase, IRRRL refinance, cash-out refinance, energy efficient, renovation
- Terms
- 15 and 30 years
- Credit score minimum
- None
- Geographic availability
- 50 states and Washington, D.C.
Why we chose it: Rate (formerly known as Guaranteed Rate) doesn’t charge a loan origination fee for qualifying applicants, which resulted in average savings of more than $1,600 in closing costs in 2025. The lender also offers a wide variety of VA loans, has competitive interest rates, boasts lightning-fast closings, and has no minimum credit score requirement. Instead, the lender reviews all your financial information to arrive at an approval decision.
Pros
- Credit union branches located worldwide
- VA loan specialists
- Very competitive interest rates
- Clearly advertised rates
Cons
- Min. credit score not disclosed
- Limited loan terms
- Must become a member
- F rating on BBB
HIGHLIGHTS
- Loan Products
- Purchase, IRRRL refinance, cash-out refinance, Military Choice, jumbo
- Terms
- 15 and 30 years
- Credit score minimum
- Not disclosed
- Geographic availability
- Worldwide
Why we chose it: Navy Federal provides not only online services but also has over 380 branches worldwide, primarily near major military bases — a definite advantage for servicemembers deployed overseas who prefer in-person interactions. The credit union offers low rates and a wide range of loan options, including the “Military Choice” loan, which veterans and service members who have already exhausted their VA entitlement can use to purchase a home. It also comes in a jumbo version.
Other companies we considered
USAA
USAA is a well-known name in the military community, and it offers a wide range of loan options for VA borrowers. It also offers other financial services for military members, including insurance, credit cards and banking options, making it a good choice if you’re looking for a one-stop shop.
Why we didn’t choose it: It’s not transparent about its credit score minimums and loan term options, and its 1.3-star rating on Trustpilot leaves a lot to be desired. A whopping 88% of customers give their experience just one star on the site.
loanDepot
Lender loanDepot offers a wide range of VA loan options, including VA energy-efficient loans, with loan terms ranging from 15 to 30 years — among the most varied terms of all the lenders we reviewed. The number of available options makes loanDepot a good choice for homebuyers seeking flexibility.
Why we didn’t choose it: There isn’t much detail on the website around fees and there’s no sample rate available, although you can use the lender’s calculators to get a ballpark payment estimate.
What you need to know about VA loans
Chris Birk, vice president of mortgage insights and education at Veterans United Home Loans, says that VA loans are a powerful tool for military members. “It’s designed to make homeownership more achievable and sustainable,” he adds.
VA loans are similar to other mortgage loans, with a few key exceptions. Here’s what you need to know if you’re considering a VA loan purchase or refinance:
What is a VA loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. This means that if you default on your loan (you fail to make payments), the VA will repay the lender for a portion of its losses.
The VA also sets the basic qualifying requirements for these loans, though the department doesn’t actually provide them. Instead, private, VA-approved mortgage lenders — such as those listed here — issue them directly to consumers. For this reason, rates and terms can vary by company.
Who qualifies for a VA loan?
VA loans are a benefit available to military members and veterans, as well as some qualifying spouses. To be eligible for one, you must not only have a military service record, but you must have served a certain amount of time. For current service members, it’s at least 90 continuous days. For veterans, it depends on when you served. The following are the most recent VA service requirements.
|
Period served |
Service requirement |
|---|---|
|
Aug. 2, 1990 - present |
One of the following:
|
|
Sept. 8, 1980 - Aug. 1, 1990 Oct. 17, 1981 - Aug. 1, 1990 (as an officer) |
One of the following:
|
|
May 8, 1975 - Sept. 7, 1980 (post-Vietnam War period) May 8, 1975 - Oct. 16, 1981 (as an officer) Feb. 1, 1955 - Aug. 4, 1964 (post-Korean War period) July 26, 1947 - June 26, 1950 (post-WWII period) |
One of the following:
|
|
Aug. 5, 1964 - May 7, 1975 (Vietnam War) Nov. 1, 1955 - May 7, 1975 (in the Republic of Vietnam) June 27, 1950 - Jan. 31, 1955 (Korean War) Sept. 16, 1940 - July 25, 1947 (WWII) |
One of the following:
|
Some National Guard and Reserve members are also eligible for VA loans. You typically need at least 90 days of non-training, active-duty service or at least six creditable years in the Reserves or Guard.
What costs are associated with a VA loan?
VA loans come with closing costs like any other loan, and you’ll generally pay somewhere between 3% to 5% of your loan amount, depending on your lender.
One fee that is unique to VA loans is the VA funding fee, which helps support the VA loan program. The cost of this fee ranges from 0.5% to 3.3% of the loan amount, depending on how you’re using the loan, how many times you’ve used the VA loan benefit, and the down payment you’re making (if any).
VA loans also allow the seller to pay for some or all of the loan’s closing costs. Sellers can also pay up to 4% of the home’s “reasonable value” in concessions, which may include discount points, a temporary rate buydown, or prepayment of taxes and insurance fees. This can help significantly reduce the upfront costs of a VA loan.
Types of VA loans available
There are several types of VA loans you can use, depending on your goals.
These include:
- VA purchase loans: These are VA loans you can use to buy a home. You do not need a down payment.
- VA IRRRLs: Short for Interest Rate Reduction Refinance Loans, these are the VA loans you’d use to refinance your mortgage and reduce your interest rate. You can also use them to move from an adjustable interest rate to a fixed one or to lower your monthly payment. You must already have a VA loan to qualify.
- VA cash-out refinances: VA cash-out refinances let you take out a loan that’s larger than your current one and keep the difference in cash.
- Jumbo VA loans: Although the VA does not have a maximum loan limit for borrowers with full entitlement, lenders often refer to loans that exceed the conforming loan limit set as jumbo loans. You might use this if you’re buying a larger house or a property in a particularly pricy housing market.
- VA renovation loans: A VA renovation loan is an option if you want to buy a home that needs repairs or safety updates, or you need to fix up your existing home. With the former, you’d roll both the repair costs and the home’s purchase price into one single loan.
- VA construction loans: This is the VA loan you’d use if you wanted to build a home from the ground up. These may include one or two closings, depending on your lender, and aren’t widely offered. They also require you to use a VA-approved home builder.
- Energy-efficient loans: The VA’s Energy Efficient Mortgage allows eligible borrowers to finance up to $6,000 in approved home improvements that increase energy efficiency and help reduce utility bills. This is an add-on option for VA purchase or refinance loans (not a stand-alone loan).
Loan options can vary quite a bit from one mortgage company to the next, and not all VA-approved lenders offer all of these options. Be sure to shop around if you’re looking for a specific type of VA loan.
What to look for in a VA lender
There are many VA-approved mortgage lenders, but no two are exactly the same. To make sure you’re getting the best one for your budget and needs, you should consider:
- Available VA loan options, as these vary widely between companies
- Company reputation, including customer reviews, lawsuits, regulatory actions and online ratings
- Loan terms and interest rates, including whether the rates are fixed or adjustable
- Loan qualification requirements, such as credit score minimums and DTI thresholds
- Geographic footprint, as not all lenders serve all 50 states
Be sure to compare loan estimates from each lender you consider. These will provide you with insights into how each one’s fees and closing costs compare. You can also ask each lender about any incentives they might offer, such as mortgage rate buydowns.
The pros and cons of a VA loan
Pros
- Low interest rates
- No down payment required
- Loans are assumable, meaning a future borrower can take over the loan when buying your house
- No mortgage insurance required
- May offer more credit and debt flexibility than other loans
Cons
- Only available to qualifying military members, veterans and military spouses
- Require a VA funding fee in most cases
- Only primary residences allowed
- Property must meet certain standards and safety requirements
- Slower equity building if you make no down payment
Alternatives to VA loans
Even if you are a veteran or military member, VA loans aren’t the only loan option you have at your disposal. You can also consider:
- Conventional loans: Conventional loans are an option if you have a decent credit score. They allow down payments as low as 3%, though you will usually need to pay for private mortgage insurance if your down payment is under 20%. These require a good-to-excellent credit score to qualify for the best rates.
- FHA loans: FHA loans offer low interest rates and allow down payments as low as 3.5%. You need a credit score of 500 to 580, depending on your down payment and lender. FHA loans require a mortgage insurance premium, which is partly paid up front, with the other portion included in your monthly mortgage payment. This insurance is often required for the life of the loan.
- USDA loans: USDA loans are an option if the home you’re buying is in an eligible rural or suburban part of the U.S. You will also need to fall under a certain income threshold for your county. Minimum credit score requirements are set by the lender, not the USDA, and these loans can be obtained with 0% down payment.
If you’re not sure what the best loan is for your home purchase or refinance, talk to a loan officer or mortgage broker. They can walk you through your options.
Latest news in VA loans
The Department of Veterans Affairs recently announced that it would enhance its VA loan program with “cutting-edge technologies” that increase ease and efficiency for both lenders and borrowers. The updates will reduce paperwork, offer real-time data access and streamline processes to allow for faster closings.
Despite the benefits of the VA loan program, recent research by mortgage lender Veterans United indicates that the loan product may be underused in many cities. The lender estimates that more than 58,000 VA-eligible homebuyers opt for a different mortgage product each year, leaving behind tangible advantages. Government Home Mortgage Disclosure Act data for 2024 shows that VA loans accounted for only about 8% of all U.S. mortgage originations that year.
VA borrowers can now deduct their VA funding fee on their tax returns. This fee ranges from 0.5% to 3.3%, depending on the loan type, amount, down payment, and the borrower’s history using the program.
VA loan lenders FAQs
How does a VA loan work?
VA loans are mortgages for veterans, military service members and their spouses. They allow qualifying borrowers to purchase a home with no down payment and no mortgage insurance. The loans are offered by private lenders who are approved by the VA, which guarantees repayment of the loan if you fall behind on your mortgage payments.
What is the downside of a VA loan?
One of the major downsides of a VA loan is that they require a funding fee for most borrowers, which can add to your total closing costs. There are also stricter property and appraisal requirements compared to other loan types.
Do you pay closing costs with a VA loan?
Yes, VA loans include closing costs, though you can negotiate a deal in which the home seller pays some or all of them. You may also be able to negotiate with your lender or shop around for services to reduce your closing costs.
Who is the best VA loan lender?
Our analysis shows that Veterans United is the best overall VA loan lender, offering a solid mix of loan variety, affordable interest rates, geographic availability and strong reviews and ratings. Other strong lenders in the VA space include CrossCountry Mortgage, Rocket Mortgage, New American Funding, PenFed, Navy Federal, Rate and PennyMac.
What is the 4% rule on VA loans?
The 4% rule says that a seller can contribute up to 4% of the home's value toward buyer concessions. This can help cover mortgage discount points, rate buydowns, prepaid taxes and more, significantly reducing the costs of a VA borrower's loan, but excludes the standard closing costs associated with the loan.
Methodology
We evaluated three dozen VA mortgage lenders nationwide, gathering data on product terms, qualifying requirements, interest rates, availability, reputation and other factors to zero in on the best ones. Lenders were rated on a one-to-five scale based on six categories: product variety (20%), average interest rates (20%), reputation and regulatory issues (20%), credit score minimums (20%), term options (10%) and geographic availability (10%)
We prioritized companies that:
- Have strong customer ratings and no regulatory actions listed in the Nationwide Mortgage Licensing System in the last five years.
- Offered the lowest average interest rates during our review period.
- Have low credit score minimums and broad geographic availability, allowing more borrowers to access their products.
- Offer a wide variety of VA mortgage products, including purchase loans, cash-out refinances, jumbo loans and construction/renovation loans.
Summary of our top picks for the 8 best VA loan lenders of May 2026
- Veterans United: Best Overall
- Rocket Mortgage: Best for Refinancing
- Pennymac: Best Online Lender
- CrossCountry Mortgage: Best for Building or Repairing a Home
- PenFed: Best Credit Union
- New American Funding: Best for Low Credit Borrowers
- Rate: Best for Low Fees
- Navy Federal Credit Union: Best for Overseas Service Members