Best VA Mortgage Lenders of May 2025
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When you compare VA loan lenders in search of the best deal, you want an institution that has experience with VA mortgages and offers a competitive combination of rate and fees. NerdWallet has reviewed more than 40 lenders that offer mortgages guaranteed by the Department of Veterans Affairs.
This list of the best VA home loan lenders takes several criteria into account, including average interest rate and fees, the portion of the institution's overall lending that goes toward VA loans, and the lender's VA market share.
Here are some of the best VA mortgage lenders in various categories to help you find the lender that will offer you the best deal for your situation.
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- 50+ mortgage lenders reviewed and rated by our team of experts.
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best VA Mortgage Lenders of May 2025
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 0% | Top 3 most visited 🏆 Learn more at Veterans United | ||
620 | 0% | |||
580 | 0% | Learn more at First Federal Bank | ||
580 | 0% | Learn more at Rate | ||
 Alliant: NMLS#197185 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 Wells Fargo: NMLS#399801 Compare More Lenders on NerdWallet | 600 | 0% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | 580 | 0% | Compare More Lenders on NerdWallet | |
 PenFed: NMLS#401822 Compare More Lenders on NerdWallet | 620 | 0% | Compare More Lenders on NerdWallet | |
 USAA: NMLS#8722 Compare More Lenders on NerdWallet | N/A | 0% | Compare More Lenders on NerdWallet | |
 Navy Federal: NMLS#399807 Compare More Lenders on NerdWallet | N/A | 0% | Compare More Lenders on NerdWallet | |
 Pennymac: NMLS#35953 Compare More Lenders on NerdWallet | 580 | 0% | Compare More Lenders on NerdWallet | |
 U.S. Bank: NMLS#402761 Compare More Lenders on NerdWallet | N/A | 0% | Compare More Lenders on NerdWallet | |
 Truist: NMLS#399803 Compare More Lenders on NerdWallet | 620 | 0% | Compare More Lenders on NerdWallet |
Explore all of our lender picks by category
Introduction to VA mortgages
A VA loan is a type of mortgage exclusively for military borrowers and their surviving spouses. These loans are offered by lenders and backed by the U.S. Department of Veterans Affairs.
The main benefit of VA home loans is that they have no down payment or private mortgage insurance (PMI) requirements. They also have low interest rates compared to other kinds of mortgages.
Qualifying for a VA loan
VA loans don’t require a down payment or mortgage insurance and have competitive mortgage rates compared to other types of home loans.
Active-duty military members and veterans who meet length-of-service requirements may be eligible for a VA loan. Some surviving spouses may also apply for a VA loan.
Special fees associated with VA loans
Borrowers pay a “funding fee,” which acts as a one-time mortgage insurance payment. This fee is a percentage of your mortgage, which depends on your down payment and whether or not you’ve used your VA entitlement before.
Funding fee requirements range from 1.25% to 2.15% of the loan amount if this is your first VA loan.
Down Payment | Funding Fee — Purchase or Construction Loan, First Use |
|---|---|
0% to 4.9% | 2.15% |
5% to 9.9% | 1.5% |
10% or more | 1.25% |
Funding fee requirements range from 1.25% to 3.3% of the loan amount you’ve gotten a VA loan before.
Down Payment | Funding Fee — Purchase or Construction Loan, Subsequent Use |
|---|---|
0% to 4.9% | 3.3% |
5% to 9.9% | 1.5% |
10% or more | 1.25% |
VA refinances have funding fee requirements as well, ranging from 0.5% to 3.3% of the loan amount.
VA Refinance Loan | Funding Fee |
|---|---|
Cash-out refinance — first use | 2.15% |
Cash-out refinance — subsequent use | 3.3% |
VA IRRRL Loan | 0.5% |
MORE NERDY PERSPECTIVE 🤓
 | How do I choose a VA lender? This is different for everyone and depends on your specific needs. My advice would be that while you might prioritize using a lender tailored to veterans, the right choice for you may not be the one with the most aggressive military marketing. Consider broadening your search and applying with a few different lenders — even if they’re not as familiar — to ensure you're getting the best possible offer. Taylor Getler, Lead Writer, Mortgages |
Alternatives to VA loans
You may be denied a VA home loan if you aren’t eligible or don't meet a lender's financial requirements. An FHA loan, backed by the Federal Housing Administration, might be an alternative if you have a lower credit score.
If your income does not exceed 115% of the local median household income, you may qualify for a USDA loan. These loans are guaranteed by the U.S. Department of Agriculture for buyers in eligible areas. Like VA loans, USDA loans have no down payment requirements.
Some lenders also have special loan programs for service members. For example, Navy Federal Credit Union has a Military Choice Loan option for borrowers who already have a VA loan.
More from NerdWallet
Fact-checked as of May 5, 2025
Last updated on May 5, 2025
Frequently asked questions
All VA loans follow rules and guidelines set by the U.S. Department of Veterans Affairs. Each lender has its own requirements, such as minimum credit scores. This is why it's important to shop around to compare mortgage rates and qualification requirements.
VA mortgage rates change daily. Rates also vary by lender, and the rate you're offered will depend on factors like your credit score. When shopping VA lenders, compare the annual percentage rate, or APR, to get a complete picture of the true costs. The APR includes the interest rate, fees and other costs of the loan.
The Department of Veterans Affairs doesn't set a minimum credit score for VA loans. But lenders can have their own requirements, and they often look for scores of 620 or higher. Lenders that accept lower scores may require applicants to meet stricter standards in other areas. VA lenders will also look at other factors, such as your debt-to-income ratio, to evaluate your ability to repay the loan.
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s VA loans category. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
All reviewed mortgage lenders that offer VA loans were evaluated based on (1) the portion of their business dedicated to VA lending, (2) their market share among all 2023 VA loan originations, (3) their average VA loan origination fees, (4) their average VA loan interest rates, (5) their variety of VA loan types (including VA Energy Efficient Mortgages, VA rehab and renovation loans, VA Interest Rate Reduction Refinance Loans and VA cash-out refinances), (6) their VA interest rate transparency, (7) customer experience. The highest scoring lenders appear on this page. Lenders gained extra points for offering Native American Direct Loans, and lost points for recent government actions regarding violations that harmed customers.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best VA Mortgage Lenders of May 2025
- Veterans United: Best for VA specialization
- NBKC: Best for low rates and fees
- First Federal Bank: Best for low rates and fees
- Rate: Best for variety of VA loan types
- Alliant: Best for low rates and fees
- Wells Fargo: Best for rate shopping
- Flagstar: Best for variety of VA loan types
- PenFed: Best for variety of VA loan types
- USAA: Best for rate shopping
- Navy Federal: Best for low rates and fees
- Pennymac: Best for rate shopping
- U.S. Bank: Best for rate shopping
- Truist: Best for rate shopping
