The world of mortgages can be overwhelming, especially for veterans who are looking for the best loan rates. The Department of Veterans Affairs (VA) offers affordable mortgages to veterans and current service members, making homeownership more accessible for those who have served our country.
5 Best Mortgage Lenders for VA Loans
To find the best rates, it's essential to contact multiple lenders. Here are five top mortgage companies that stand out for their VA loan offerings:
1. Best Overall: Veterans United
Veterans United takes the top spot with its excellent customer reviews and dedication to educating borrowers about home Ownership and VA Loans. The company works closely with military leaders to provide personalized support throughout the loan process. While the application can't be completed online, Veterans United's website offers easy rate comparison for potential borrowers.
Why we love it: Veterans United specializes in serving veterans, active duty service members, and their families, offering competitive rates and tailored loan options for military borrowers.
2. Best for Online: Rocket Mortgage®
Rocket Mortgage® excels in the online mortgage application process, allowing borrowers to complete the entire process online. With fixed-rate VA mortgages and various term options, Rocket Mortgage® stands out for its user-friendly platform and competitive rates.
Why we love it: Rocket Mortgage® offers convenience and competitive rates, making the loan application process quick and hassle-free for borrowers.
3. Best for First Time Home Buyers: USAA
USAA caters to first-time home buyers with a range of mortgage options, including VA mortgages and special loan programs. Known for its excellent service, USAA guides borrowers through the home buying process with expert advice and tailored loan Solutions.
Why we love it: USAA's commitment to serving veterans and understanding their unique needs makes it a top choice for first-time home buyers.
4. Best for Experience: Navy Federal Credit Union
With a long history of serving the military community, Navy Federal Credit Union offers a Wealth of Experience in providing VA Loans and other financial products. Known for its high customer satisfaction ratings, Navy Federal Credit Union stands out for its personalized service and specialized loan offerings.
Why we love it: Navy Federal Credit Union's extensive Experience and commitment to military members make it a trusted lender in the industry.
5. Best for Low Credit Scores: Caliber Home Loans
Caliber Home Loans caters to borrowers with low Credit scores, offering competitive rates and flexible loan options. With a focus on helping military members and veterans secure financing, Caliber Home Loans stands out for its excellent customer service and track record of success.
Why we love it: Caliber Home Loans provides competitive rates and flexible loan options for borrowers with low Credit scores, making homeownership more accessible for military personnel.
What Is a VA Loan?
A VA loan is a home loan backed by the Department of Veterans Affairs, offering benefits such as no down Payment requirement and no need for mortgage insurance. Private lenders approved by the VA offer VA Loans, providing affordable financing options for veterans and service members.
Types of VA Loans
Fixed-Rate Mortgages
Fixed-rate mortgages have a consistent monthly Payment throughout the mortgage term, offering stability and predictability for borrowers. With various term options, fixed-rate mortgages are a popular choice for VA loan borrowers.
Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) have a fluctuating monthly Payment based on Market conditions. With an introductory fixed rate period, ARMs offer flexibility for borrowers who may benefit from lower initial interest rates.
Lenders may offer VA Loans as fixed-rate mortgages, ARMs, or a combination of both, catering to borrowers' preferences and financial goals.
Who Is Eligible for a VA Loan?
Eligibility for a VA loan varies based on service history and military status:
Veterans
Veterans must meet specific service length requirements, depending on whether they served during wartime or peacetime. Discharge status also plays a role in determining VA loan eligibility.
Current Service Members
Current service members become eligible after completing a minimum period of continuous active duty service.
Reserve or National Guard
Reserve and National Guard members must meet service requirements to qualify for a VA loan.
Surviving Spouse
Un-remarried spouses of veterans who died in service or due to a service-connected disability may qualify for a VA loan, along with spouses of missing in action or prisoner of war service members.
If you're unsure about your eligibility, contact the VA for assistance and confirmation of your eligibility status.
VA Loan Requirements
The VA sets requirements for lenders offering VA-guaranteed mortgages, including considerations such as debt ratio, loan amount, Credit score, income, and property condition. Meeting these requirements ensures borrowers can afford and maintain their VA Loans.
VA Loan Rates
VA loan rates vary based on the type of loan and Market conditions. Comparing VA loan rates to other mortgage types can help borrowers make informed decisions about their home financing options.
Applying for a VA Loan
Applying for a VA loan involves obtaining a Certificate of Eligibility, gathering financial documents, receiving preapproval from a lender, and selecting a home. Once the application is approved, borrowers can proceed to closing and securing their new home.
Frequently Asked Questions
Here are some common questions about VA Loans:
Q: How do I apply for a VA loan?
A: To apply for a VA loan, submit an application along with required financial documents to a lender, who will review your application and Credit history for approval.
Q: How is interest on a VA loan calculated?
A: Interest on a VA loan is determined by the loan amount, interest rate, and loan term, impacting the total interest paid over the life of the loan.
Q: How much should I save for a VA loan down Payment?
A: Saving at least 20% of the home's cost for a down Payment is recommended to lower monthly Payments and save on interest. Home buyer programs and assistance are available for those unable to save 20%.
