2017 RANKING & REVIEWS
TOP RANKING VA-APPROVED MORTGAGE LENDERS
Finding the Best VA Mortgage Lenders
The VA Home Loan Program, founded as a component of the GI Bill in 1944, was an initiative meant to give American servicemen and women a better chance of buying a home. Since then, VA-approved lenders have sprung up across the country so that veterans have more than one option to choose from.
But picking one of the best VA loan lenders is tricky. Typically, VA loan companies offer lower interest rates than more standard mortgages. In addition, the top VA loan lenders allow veterans to have lower credit scores, a higher debt-to-income ratio, and do not require private mortgage insurance.
It is particularly for these reasons that VA loan lenders have become such an important part of the housing industry. As long as you qualify, getting a loan from one of the approved VA mortgage companies will be your best way to buy a house and not have to worry about future financial difficulties.
Thanks to VA mortgage lenders, 79% of veterans own their homes compared to only 63% of the civilian population. While these numbers are great, the best VA loan lenders offer opportunities that should get this number closer to 100%.
Award Emblem: Best VA Loan Lenders
Part of the reason the numbers are not even higher is that some veterans consider VA-approved lenders to be inferior to more traditional mortgages. VA loan lenders are often stigmatized simply because not enough people know what the best VA mortgage lenders can offer.
With that being said, we would like to not only discuss the six best mortgage lenders for VA loans, but why they are truly effective for those who qualify. To get rid of some of the stigmas surrounding VA approved mortgage lenders, we will answer many of the most frequently asked questions including the following:
- What are the best VA mortgage lenders for 2017?
- What do the top VA loan lenders offer that others do not?
- What should I look for in the best mortgage lenders for VA loans?
While the best mortgage lenders for VA loans will vary from person to person, all six of the top VA loan lenders discussed below will offer everyone some of the benefits they need. Our goal is to show you why VA mortgage lenders may be the perfect option for you.
AdvisoryHQ’s List of Top 6 Best VA Loan Lenders
List is sorted alphabetically (click any of the VA-approved lenders below to go directly to the detailed review section for that lender):
Image Source: Pixabay
Top 6 Best VA Loan Lenders | Brief Comparison & Ranking
VA Loan Lenders
Biggest Selling Points
Navy Federal Credit Union
Starting at 3.361%
100% value of home
Offers fixed-rate insurance terms to avoid raised rates, no Private Mortgage Insurance required
100% value of home
Offers a free VA appraisal valued at $500, loans to those with lower credit scores
Starting at 10%
Gives approved borrowers several ways to receive money, depending on financial needs
Starting at 10%
Also offers bereavement loans, disaster relief, and convalescent leave loans
Starting at 8.99%
No down payment, multiple uses, no mortgage insurance necessary
Largest VA mortgager, A+ rating from Better Business Bureau
Table: Top 6 VA loan companies | Above list is sorted alphabetically
Detailed Overview of What to Look for in the Best VA Loan Lenders
Before you choose one of the best mortgage lenders for VA loans, it will be imperative that you learn more about the features that separate some from others.
As you search for the best VA mortgage lenders, you will notice that most VA mortgage lenders come with many different features. Therefore, when you look for the best VA loan lenders, you should make note of several of the following benefits:
- Low interest rates
- Fixed-rate options
- No down payment
- No mortgage insurance required
- Low credit score approval
- No prepayment penalties
- Easy qualifications
The best VA mortgage lenders will come with several key incentives, including low interest rates, no prepayment penalties, no down payments, and the option to lock in a fixed rate, regardless of how long your loan is for. Although these features are perfect for the top VA loan lenders, you will find that even the best VA loan lenders do not come with every possible benefit.
Your goal should then be to find the best VA mortgage lenders for your particular financial situation. Some features of top VA loan lenders may not matter to you, like a low qualifying credit score. Only focus on ones that matter to you.
Detailed Overview of Why the Best Mortgage Lenders for VA Loans Are So Beneficial
If you are wondering why VA-approved mortgage lenders are more beneficial than more traditional lenders, consider the following points:
- Who They’re For: The best mortgage lenders for VA loans are intended for those who have served their country. Therefore, VA mortgage companies have a greater incentive to offer the best benefits possible.
- Easy Qualification: It is easier to get a loan from one of the best VA loan lenders because of relaxed credit standards. Since VA loan companies know veterans may have difficulties improving their credit scores, they put less pressure on having perfect credit scores.
- Lower Financial Investment: The best VA mortgage lenders do not require private mortgage insurance (PMI) or down payments. This will be incredibly helpful for those who need time to earn enough money to pay off the loan. Additionally, the top VA loan lenders do not have prepayment penalties which could set some homeowners back financially.
Overall, picking one of the best mortgage lenders for VA loans will tremendously help your wallet, whether you are looking to purchase a home or repair it in some way. The best lenders for VA loans are meant to help those who qualify in far more ways than a conventional lender.
AdvisoryHQ’s Selection Methodology
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Please click here “AdvisoryHQ's Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top-rated credit cards, financial accounts, firms, products, and services.
Detailed Review—Top Ranking Best VA Loan Lenders
Below, you will find a detailed review of each lender from our list of best VA mortgage lenders. We will focus on some of the most important factors that make these VA-approved lenders some of the best that you can find.
Navy Federal Credit Union Review
Perhaps the biggest reason that the Navy Federal Credit Union is one of the best VA mortgage lenders that you can find is its low interest rates. As previously mentioned, the best mortgage companies for VA loans offer slightly lower interest rates than conventional lenders, but an interest rate of 3.361% is one of the lowest you will find.
Image Source: Navy Federal Credit Union
Additionally, you have the option of financing your home 100%. This is another major reason we consider Navy Federal Credit Union to be one of the top VA loan lenders. Rather than getting a loan that stops at a certain amount, VA loan lenders like Navy Federal will allow you to take out as much as you need to purchase or fix your house.
The best lenders for VA loans will sometimes give you finance options of up to 100%, but as you can see in the comparison table, some only offer up to a certain amount. With Navy Federal, you will not have to look for an additional loan to cover the remaining payments, making this one of the best mortgage companies for VA loans around.
With Navy Federal, you also have the option of locking in your interest rate from the start. You will not need Private Mortgage Insurance, and refinance options are available. Overall, you could make the argument that this is the best VA loan lender that one can find.
NewDay USA Review
NewDay USA is one of the best mortgage lenders for VA loans partially because it offers a free VA appraisal. A VA appraisal is required for VA approved lenders after you have met all loan program guidelines and submitted a loan application.
Generally, VA appraisals cost around $500, but when going through NewDay, the fee is waived, saving you a lot of money that often keeps veterans from going with the best VA loan lender.
Image Source: NewDay USA
Similar to Navy Federal Credit Union, NewDay USA allows borrowers to get a loan that covers 100% of their home. Additionally, qualified applicants will not have to make a down payment, which is one of the top benefits of going with the best lenders for VA loans.
Finally, veterans can qualify with low credit scores, since NewDay USA looks at a person’s entire financial profile, not just the FICO score. Therefore, if you have a low credit score for whatever reason, this may be the best VA loan lender for you. You may qualify despite any financial hardships you faced in the past.
Omni Financial® Review
Another one of the top VA loan lenders is Omni Financial® for a few different reasons. The first is that all of their loans are backed by a 100% satisfaction guarantee. If you find that this is not one of the best VA loan lenders for you, you can cancel your loan in the first 15 days.
Additionally, the application process is as simple as it gets. You have the option of applying for a loan whether you are deployed or stateside, and the application is free. Throughout the country, Omni Financial® has more than 50 branches that you can visit in order to speak with someone about your loan.
Image Source: Omni Financial®
While its small borrowing window may not make it one of the best VA mortgage lenders for huge purchases, the $500 to $10,000 loan options are perfect for a variety of reasons, including rent payments, emergencies, and home repairs. Since the amount you borrow is smaller, it will not take you as long to pay off.
In general, VA mortgage companies attempt to make payments as easy as possible, and Omni Financial® is no exception. It will be up to you whether you want to pick up a check, receive funds via direct deposit, or through an online prepaid credit card. The choice will be entirely yours.
Pioneer Services Review
Pioneer Services, another one of the top VA loan lenders, clearly lays out the many benefits of choosing them on its website. Earlier in this article, we mentioned some of most important features of the best VA loan lenders, and Pioneer Services covers just about all of them.
Image Source: Pioneer Services
By choosing Pioneer, you will have the option of low or no down payments, no private mortgage insurance, low fixed interest rates, and no prepayment penalties. You can easily apply for a loan by filling out a form on their website.
Again, this may not be one of the best mortgage lenders for VA loans if you need to cover the expenses on an entire house, but it will benefit you in many other ways. We consider this one of the best VA loan lenders because their services can be used for bereavement loans, disaster relief, and convalescent leave loans.
The interest rates start at 10%, but since you will be getting a smaller loan, you can pay it off much faster. This is where you ask yourself what you’re looking for in VA mortgage lenders. If you do not need to cover an entire house, Pioneer Services may offer the perfect amount for you.
As one of the most trusted VA-approved mortgage lenders around, USAA offers just about all of the benefits you could need. Since it is one of the biggest lenders, all borrowers can be sure that USAA will do everything in its power to provide the best services possible.
Image Source: USAA
The borrowing window is small, between $3,000 and $20,000, but the interest rates are smaller than the two previously mentioned VA-approved lenders. With interest rates starting at 8.99%, USAA is one of the best mortgage lenders for VA loans thanks to low interest rates on small loans.
Consider USAA if you have a good or excellent credit score—this will not be one of the top VA loan lenders if you need to improve your credit rating. While this is a potential downside, those who do have excellent credit scores will get the best interest rates available.
Veterans United Review
As the largest of the VA loan lenders, Veterans United is similar to USAA in that it will stand behind its services thanks to its big name. You can be sure that you are getting the best possible service when going through one of these top VA loan lenders.
Image Source: Veterans United
While you may not be able to cover the cost of your entire house, this is still one of the best VA mortgage lenders because it offers loans from $150k to $725k. If that does not cover the entire house, it will at least cover a big portion.
Since Veterans United is one of the biggest VA loan companies around, you can speak to one of their experts at any time. While contacting them, you can discuss fixed mortgages, better rates, refinancing options, and more. Their service alone qualifies them as one of the best mortgage companies for VA loans.
If you decide that the most important thing you can get from one of the best VA loan lenders is an attentive staff, then this might be the lender for you.
Conclusion—Top 6 Best VA Loan Lenders
While there are many VA mortgage companies to choose from, the top VA loan lenders all have a few things in common. From lower interest rates to attentive service; from no down payments to fixed-rate options, the best mortgage lenders for VA loans offer veterans a better chance of securing the home of their dreams.
Veterans deserve an opportunity to purchase and maintain the perfect home after returning from deployment. Luckily, the best VA mortgage lenders make this possible.
Be sure to ask yourself exactly what you want from the best VA loan lenders. If you are unsure which of the top VA loan lenders is right for you, the answer may come simply by asking the right questions.
How much money do you need? What will the loan be used for? How much time will you need to pay it off?
Once you’ve answered these questions, take another look at our suggestions. The best VA loan lenders are out there. Now it’s time to decide on the perfect one for you.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
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