VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of their mission to serve, they provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.

VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. Buying a home isn’t something most people do with any great regularity. You might only purchase one or two houses in your life. Others will do this dozen times.

Whether it’s your first or your twenty-first home purchase, working with someone who really understands VA loans is critical. This is a specialized loan product. It’s not something most loan officers and real estate agents work with every day.

Be wary of lenders or real estate agents who try to steer you away from exploring the VA loan program. This is often due to a lack of familiarity with VA loans. The VA process isn’t more complicated or difficult than any other loan. It’s just different, and knowing how to navigate those differences can make or break a deal for buyers.

• Who is the best VA Home Loan Lenders?
• How To Choose The Best VA Lender
• What Makes A Good VA Lender?
• What Should you Keep In Mind About VA Loans?
• Who do I talk to about a VA Home Loan?
• Can any Lender do VA Loans?
• Why are VA Loans bad?
• What are the Benefits of VA Loans?
• What is the Best Bank for VA Loan?

Who is the best VA Home Loan Lenders?

Who are the best VA home loan lenders? That is a question that is hard to answer because not all borrowers have the same needs. You will want to tailor your search for a participating VA lender to suit your specific goals and plans for the home.

Read Also: National Guard VA Home Loan

That is important because there is no one-size-fits-all home loan solution for ANY type of mortgage. You might want to purchase a condo unit, a typical suburban home, or a mobile home. Or you might want to build a house from the ground up using a VA One-Time Close construction loan, also known as a single-close construction loan.

There are many VA loan lenders. Some of the most highly visible among them include, but may not be limited to the following list. What follows is NOT an endorsement of any individual lender:

1. Navy Federal Credit Union

Navy Federal tops the list mainly because it offered the lowest VA rates in the survey during 2019. Its average VA mortgage rate that year was 3.56%, which was a little lower than some on this list and substantially lower than a few.

• Average 30-year VA loan rate in 2019: 3.56%
• Minimum credit score: 580
• Average customer service score: 4.7 / 5

True, Navy Federal isn’t the highest scorer for customer satisfaction. But it does well, even judged by that criterion. Navy Federal came third in the J.D. Power 2019 U.S. Primary Mortgage Origination Satisfaction Study. Only USAA and Veterans United beat it.

The company did have more complaints filed against it with the CFPB than others on this list. But “more” in this case was still less than one complaint per 100 VA mortgage customers.

In our estimation, Navy Federal deserves to be on just about anyone’s VA loan shortlist.

2. Stearns Lending, LLC

Stearns took the no. 2 slot because it has the best customer service. Alongside Movement Mortgage, it scored a perfect 5.0 score from customers on online review websites.

And, very few of Stearns’ customers have complained about it to the Consumer Financial Protection Bureau (which collects mortgage complaints).

• Average 30-year VA loan rate in 2019: 3.92%
• Minimum credit score: 580
• Average customer service score: 5 / 5

Stearns Lending also doesn’t do badly for VA loan rates: it was fourth-lowest out of 10 ranked companies.

Some lenders had lower rates. But of those lenders, many had a minimum FICO score of 620. Requiring higher credit scores likely kept their average rates lower. But Stearns will look at applications with scores as low as 580, a huge benefit to those with lower credit.

3. Movement Mortgage, LLC

Movement Mortgage may be speedier at getting your VA loan ready than any others on our list of the best VA lenders. The movement aims to have applications approved in six hours, processed in seven days, and ready for a one-day closing at least two weeks before the date.

And its technology gives you the option of an all-online experience, which is especially handy in today’s stay-at-home environment.

• Average 30-year VA loan rate in 2019: 3.98%
• Minimum credit score: 580
• Average customer service score: 5 / 5

Meanwhile, Movement Mortgage’s service is exceptional, with customers giving it an average of five stars on the review forums we checked.

Indeed, it had even fewer complaints to the CFPB than Stearns. But its average VA loan rates were slightly higher in 2019 than some others.

4. Quicken Loans Inc.

Quicken Loans is the first (but not the only) lender on our list to require a 620 credit score before it will look at your application.

That said, it can be more helpful than others if your existing debt burden is high. Quicken says it’s OK with debt-to-income ratios as high at 60% for some VA loans. For reference, DTI is typically capped around 45%.

• Average 30-year VA loan rate in 2019: 3.68%
• Minimum credit score: 620
• Average customer service score: 4.5 / 5

Customers tend to love Quicken for their convenience. The company, like Movement, can process loans completely online in many cases. Quicken has also earned the top score — at least, for non-VA-specific lenders — in J.D. Power’s satisfaction survey 10 years running.

When all lenders are considered, VA specialists like Navy Federal and Veterans United typically beat Quicken for customer service. That said, if you want an all-online experience (with telephone support available), this lender may be for you.

5. Veterans United Home Loans

Veterans United is the biggest VA lender in the U.S. — despite having a higher credit threshold and (according to our survey) somewhat higher rates than others.

This can only mean the company is doing something right for borrowers. And indeed, it earns a near-perfect 4.9 out of 5 for customer service.

• Average 30-year VA loan rate in 2019: 4.00%
• Minimum credit score: 660
• Average customer service score: 4.9 / 5

Likely, many borrowers don’t mind Veterans United’s higher credit threshold thanks to its Lighthouse program.

If your FICO score is too low to qualify for a VA loan, VU’s Lighthouse program provides free, one-on-one counseling to help you reach the threshold. (Note: This service is only open to veterans, service members and military families.)

And as far as rates go, remember that those vary by customer. Though Veterans United looks just a bit higher on average, it could very well still have the best deal for you.

6. New American Funding

New American Funding customers love it, even though it had a marginally higher VA loan rate than some others on our list. Some of that may be down to its accessibility: that 580 minimum credit score will be attractive to many.

• Average 30-year VA loan rate in 2019: 3.98%
• Minimum credit score: 580
• Average customer service score: 4.9 / 5

NAF also says that it has deployed advanced technologies to simplify and speed up the loan process. And it talks about its focus on Latinx customers, which may generate additional loyalty within that community.

7. Guild Mortgage Company

The volume of VA loans Guild originated in 2019 is among the highest for a non-VA specialist. And you might infer that means it’s doing a great job.

• Average 30-year VA loan rate in 2019: 3.97%
• Minimum credit score: 580
• Average customer service score: 4.5 / 5

Guild’s website suggests a solid, middle-of-the-road company rather than a standout innovator. And its customers clearly like that. True, Guild didn’t score especially highly on online reviews. But it came third in the J.D. Power 2019 U.S. Primary Mortgage Origination Satisfaction Study, which is a serious achievement.

8. The Federal Savings Bank

This veteran-owned lender originated plenty of VA loans in 2019 — even more than Guild did. And, like Guild, it offers a range of other types of mortgages, so it’s not a VA specialist.

• Average 30-year VA loan rate in 2019: 3.86%
• Minimum credit score: Unpublished
• Average customer service score: 4.5 / 5

The Federal Savings Bank’s website says, ” … we start with a discussion to truly understand the dreams, hopes, aspirations and needs of our customers.”

It also suggests it will offer help to borrowers who need to improve their credit score before applying for a VA loan. So you may receive a more personal service from the Federal Savings Bank than with some of the others featured above.

How To Choose The Best VA Lender

There are many things to remember when trying to choose the best VA lender. The first is to keep in mind that not all lenders offer the same VA mortgage loans. For example, some housing markets don’t have a lot of demand for mobile homes, while others have a large inventory of mobile homes for sale and a high demand.

A lender who doesn’t see the value of offering VA mobile homes or manufactured home loans may not offer them. Some housing markets don’t support construction loans, and others don’t support VA loans to buy condo units–the inventory simply isn’t there.

You will need to ask some basic questions of each lender you review. What kind of questions? Use these as a jumping off point–you will think of plenty of follow-up questions to ask based on the answers you get to these:

1. How many VA mortgages do you process compared to other types of loans like an FHA mortgage, USDA, conventional, etc?
2. I am interested in a specific type of property (condo, mobile home, farm residence, construction loan to build on own land), do you have a loan that supports that under the VA mortgage program?
3. What terms and conditions apply to my type of home loan compared to other types of VA loans?
4. I qualify for zero down. Do you offer any incentives for making a down payment if I choose to do so?
5. My credit score may disqualify me for zero money down; what can I do to reduce my out-of-pocket expenses with this type of VA mortgage?

The first question is critical in some cases; a lender who isn’t used to processing VA mortgages may not know some essential things that are crucial to getting your loan properly approved. What do you AND your lender need to know about VA mortgages for the best deal?

• Your lender is responsible for helping you get your VA Certificate of Eligibility for the loan, if required.
• Your lender is required to determine if you are exempt from paying the VA loan funding fee in cases where the applicant receives or is eligible to receive VA compensation for service-connected medical issues.
• Your lender cannot charge you a penalty for early payoff of the loan.
• You cannot receive excess cash back at closing time for things not considered bona fide refunds.

What Makes A Good VA Lender?

What makes a company worth your time as a potential mortgage lender? Financial institutions with plenty of experience in processing VA loans, for a start, are better than those that lack experience.

A loan officer who isn’t familiar with VA lending practices may not fully understand their rights and responsibilities to help you, the applicant, obtain your VA COE, determine your exemption from having to pay VA loan funding fees where applicable, knowing how the zero-down aspects of the VA mortgage loan program work, etc.

You should consider lenders who provide step-by-step instructions to navigate the loan pre-approval process, the actual application, loan closing, etc.

A good VA lender can clearly explain your closing costs, down payment requirement where applicable (yes, a down payment can sometimes be required with a VA mortgage depending on circumstances, but most VA loans will feature a no-down payment option). Can your lender coherently explain how the VA loan funding fee works?

Why is that fee required? And does the lender know what it takes to lower that fee? The VA loan funding fee can be reduced by making a down payment and it is in some borrowers’ best interest to make such a down payment depending on financial needs and goals. If your lender doesn’t know about that, it may not be a sign you are dealing with a bad lender, but it’s a good excuse to keep shopping around.

What Should you Keep In Mind About VA Loans?

VA mortgages are unique in a variety of ways. If your loan officer doesn’t know some of these basic VA loan features, you may wish to keep looking for the best VA lender:

• VA mortgages have no VA-required private mortgage insurance or mortgage insurance premiums.
• VA mortgages technically have no VA-mandated conforming loan limit; prior to 2020 VA loan limits were calculated using Fannie and Freddie conforming loan limits. Jumbo VA mortgages are possible, but lenders will negotiate the loan limit and other details. Jumbo VA mortgages may require money up front similar to a down payment depending on the price of the home and other factors.
• VA mortgages have an escape clause that prevents the borrower from being forced to complete a transaction where the appraised value of the home is lower than the sale price.
• VA mortgages will require a down payment in cases where the borrower chooses to buy a home in the above scenario where the VA appraisal is lower than the asking price. The difference must be made up in cash by the borrower and cannot be financed.
• If you have a VA rated disability and are eligible to apply for an exemption to the VA loan funding fee, you will need to apply for the exemption–it is NOT automatic. Your loan officer should be able to help you do this.
• VA mortgage loans are assumable but loan assumptions require the lender’s participation.
• VA loans can be made out to multiple borrowers obligated on the note, but the VA will only cover the veteran’s portion of the loan. Non-veterans are not covered by the VA loan guaranty and the VA loan guaranty applies only to the military borrower’s financial share of the mortgage.

Who do I talk to about a VA Home Loan?

Find the nine VA Regional Loan Centers (RLCs) website addresses, telephone numbers, addresses and email. RLCs provide assistance to veterans in need of information on how to use their veteran mortgage benefits.

VA Home Loan Phone Number: 1-877-827-3702 (hours of operation from 8am to 6pm, EST)

Call 1-877-827-3702 to reach the nearest VA Regional Office with Loan Guaranty operations. For existing loans contact the Regional Loan Center that has jurisdiction on the state in which the property is located.

Can any Lender do VA Loans?

When you’re ready to take the first official steps toward using your VA home loan benefits—assessing your eligibility and getting prequalified—you’ll need the help of a VA approved lender.

It’s easier to get a great deal on a mortgage when you come to the table with excellent credit and room in your budget for a new house payment. Your credit scores not only affect your ability to qualify, but also your ability to take advantage of the best interest rates available.

If you aren’t sure where you stand in terms of credit scores or debt-to-income ratio, getting prequalified with at least one lender will help you determine the best way to make improvements. Some lenders may even offer credit education, allowing you to continue working toward homeownership while improving your credit or paying down debt.

Getting a VA loan isn’t more complicated than getting a conventional mortgage, but there are some minor differences in the way these loans are processed. That means VA loan expertise on the part of your lender could make or break your homebuying experience.

While most of the large national bank chains offer VA loan products, VA homebuyers would be wise to shop around before settling on a lending partner. Here are some valuable parameters to use when comparing VA lenders:

1. VA Loan Expertise

As you navigate the homebuying process, your Loan Officer will act as your advocate and educator. When it comes to obtaining your Certificate of Eligibility, locking in a low interest rate and ultimately getting underwriting approval, his or her VA loan expertise will be crucial in ensuring things go smoothly.

• VA Percentage and Loan Volume: Ask prospective lenders how much of their business comes from VA loans. The higher the percentage, the more likely they are to understand the ins and outs of VA-backed home loans.
• VA Training and Education: Some VA-specialized Loan Officers may have received specific training on the VA loan program and the unique needs of military homebuyers.

2. Customer Service and Satisfaction

Interest rate comparisons and stats about VA loan volume are useful, but they don’t paint a complete picture. Customer reviews are another great resource for hopeful homebuyers as they shop for a lending partner. Reviews can tell you more about the actual experience of working with a lender, including the overall attitude and culture of the staff.

Independent third-party review sites like Better Business Bureau and Trustpilot can also provide an objective look at what real customers are saying. A high volume of negative vs. positive reviews is a red flag, but so is a low volume of reviews overall. Look for a lender that has plenty of mostly positive reviews for a better shot at a great homebuying experience.

3. Assembly Line vs. Dedicated Loan Team

Many large financial institutions run their loan process like an assembly line, meaning that you could get passed from person to person as you move along. In those cases, you may find yourself juggling phone calls and emails from many different parties.

Lenders that provide dedicated Loan Officers tend to provide more personalized service, an important feature for many military homebuyers. With a dedicated team, you can stay focused on your big move. For starters, you’ll always talk to someone you know.

In addition, your Loan Officer and real estate agent will work together to coordinate with third parties, taking some of the burden off you during this exciting but stressful time. Your real estate agent, the sellers’ agent, title agent, homeowners insurance agent, underwriter, and even the VA appraiser all have a hand in getting you to closing.

4. Compare Rates

Getting the lowest available interest rate is a top priority for many homebuyers—and rightfully so. Over the course of a 15- or 30-year mortgage term, what seems like a small difference in rates could cost you thousands.

You can start your rate comparison online to get a sense of where the market stands, but your credit score, and to a lesser extent your debt-to-income ratio, can impact the rates that are available to you. That means you’ll need to speak with lenders to get a better idea of the rate they’re able to offer based on your specific scenario. Lenders won’t be able to lock your rate in until you’re under contract for a home.

5. Ask the Right Questions

Don’t be afraid to ask a lot of questions when you’re speaking to prospective lenders for the first time. By asking the right questions, you’ll get a much clearer idea of the type of service you can expect. Here are a few that we suggest:

• What kind of credit score do I need to qualify?
• What kind of debt-to-income ratio do I need to qualify?
• What will happen if my scores or debt-to-income ratio fall short?
• Do you provide any homebuyer education?
• Do I need to obtain my own Certificate of Eligibility?
• How much of your business comes from VA loans?
• Do you have an in-house underwriting staff?
• How do your rates compare to other lenders?
• What fees will you charge?
• What is your average customer service rating?
• Do your Loan Officers have any special VA loan training?
• Are your Loan Officers familiar with the needs of military homebuyers?
• Will my Loan Officer work closely with my real estate agent?
• Will I work with the same Loan Officer from start to finish?

Make a list of your priorities that ranks rate, fees, VA experience, and customer satisfaction in terms of what you find most important when buying a home. When you’re comparing lenders, your list will make it easier to choose the one that aligns with your specific needs.

Why are VA Loans bad?

Now here are some of the potential drawbacks of the VA loan:

• It’s not for everyone: The VA loan program is a benefit you must earn, which makes it relatively rare to obtain compared to other loan products. VA home loans are only available to eligible service members who have served their country in the United States military. Spouses of veterans who have died in the line of duty or as a result of a service-related disability may also be eligible.
• VA Funding Fee: All VA loans come with a mandatory VA Funding Fee charged by the VA. This fee goes directly to the agency and helps keep the VA home loan program running for future generations. It’s a cost you can finance into the loan, and borrowers with service-connected disabilities are exempt from paying the fee. But this isn’t something you’ll pay on a conventional loan or FHA loan. You can learn more about how much the VA Funding Fee is, who pays what and who is eligible for a refund.
• They’re intended for primary residences: This isn’t a loan program you can use to purchase a second home or an investment property.
• Sellers aren’t always on board: Some home sellers aren’t open to receiving offers from VA borrowers. A lot of this undoubtedly has to do with some of the myths and misconceptions surrounding VA loans.

What are the Benefits of VA Loans?

Here are some of the major advantages of the VA home loan program:

• No down payment: This is such a significant benefit. Qualified borrowers can borrow as much as a lender is willing to lend, all without needing a down payment. FHA loans typically require a 3.5 percent minimum down payment, and for many conventional loans it’s a 5 percent minimum. On a $175,000 home purchase, that’s a $6,125 down payment for FHA and a $8,750 for conventional.
• No private mortgage insurance (PMI): This is required for conventional borrowers who can’t put down at least 20 percent. FHA borrowers have a couple forms of mortgage insurance, one that’s paid upfront at the time of purchase and another that’s paid monthly. PMI typically disappears once you have about 20 percent equity in your home. There is no PMI on a VA loan.
• Higher allowable DTI ratio: Lenders will look at the ratio of your total monthly income to your total monthly expenses. The VA typically wants to see a debt-to-income ratio of 41 percent or less. That benchmark is higher than what you would see on conventional and even FHA loans. And it’s possible for qualified borrowers with a DTI ratio greater than 41 percent to still secure VA financing.
• No prepayment penalty: You can pay off your VA loan early with no fear of getting hit with any prepayment penalties.
• Refinance options: The VA home loan program has a pair of refinance loans that can help qualified buyers lower their monthly payments or get cash back from their equity. The Streamline refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), is for homeowners with existing VA loans. The VA Cash-Out Refinance allows VA and non-VA homeowners to refinance and get cash at closing to pay down debt or take care of other needs. Refinancing may result in higher finance charges over the life of the loan.
• Flexibility with bankruptcy and foreclosure: Some borrowers who qualify can be eligible for a VA home loan two years after a bankruptcy or foreclosure. The wait can be much longer for different loan types.

What is the Best Bank for VA Loan?

The key criteria we reviewed were the length of the loans, the current rates, the minimum credit scores lenders accept, the application process, autopay features, and the customer service channels available. These are our top picks.

1. Veterans United

Founded in 2002 and built for veterans, Veterans United Home Loans was honored in 2019 by the Department of Veterans Affairs for issuing the official 24 millionth VA mortgage for the 75-year-old VA program. Veterans United closed more VA loans than any other lender in 2016, 2017, 2018, and 2019.

Veterans United won best overall because they were founded for veterans and service members and they continue to be solely focused on this consumer category. The company’s website and support staff lead the veteran from loan eligibility to credit counseling if necessary, and then quoting. They have no-down-payment programs and programs tailored for first-time homebuyers. 

The company offers nine VA loan programs. Their six 30-year programs include a Fixed-Rate program, a Streamline Interest Rate Reduction Refinance Loan (IRRRL), 30-Year VA Cash-Out, VA Fixed Jumbo, 30-Year Streamline Jumbo, and 30-Year Cash-Out Jumbo.

The Lighthouse Program offers free credit counseling as well as tools to improve your credit score and financial profile.

Veterans United Realty is a nationwide network of Veteran-friendly real estate agents. These independent partners specialize in the VA loan process, so the real estate agent and bank are in sync throughout your entire home-buying experience.

Current VA loan interest rates range from 2.25% for a 30-Year Fixed to 2.99% for their 30-Year VA Cash-Out Jumbo program. While the VA loan program does not set a minimum credit score, the minimum credit scores Veterans United will underwrite are 660 for the Jumbo loan products and 620 for the standard programs.

To apply, you first need a loan pre-approval. The loan process takes between 30 and 45 days once you’re under contract on a home. Then you need to obtain your COE (certificate of eligibility) from your lender or on your own. Lastly, you need to finalize your loan application and provide all necessary paperwork like W-2s, tax returns, and financial information.

Borrowers have the option to buy down their interest rate by purchasing discount points. When you purchase discount points, you are essentially paying interest upfront to receive a lower rate over the life of the loan. Once your loan is set up, you can choose to use their automatic payment option, however, there is no further discount incentive for using autopay.

2. PenFed Credit Union

PenFed, established in 1935, is now a credit union with a global presence, 24/7 account access, and is federally insured by the National Credit Union Administration (NCUA). 

Their current 30-year fixed interest rate is 2.375% with no points, which keeps closing costs low, earning PenFed our award for best 30-Year Fixed loan. PenFed serves members in all 50 states and the District of Columbia, Guam, Puerto Rico, Okinawa, Germany, Spain, Italy, and the UK.

The PenFed Foundation is a nationally recognized 501(c)(3) nonprofit. The foundation helps people through financial education, credit-building, homeownership, and short-term financial assistance. Financial assistance and resources are available to service members, veterans, and Wounded Warriors who need continuing treatment or financial assistance in buying or keeping their homes. 

In addition to a 30-year fixed, PenFed also underwrites a 15-year fixed program. The 15-year rate is currently 2.750%. 

You begin the process by clicking their Start Online button. You then have a choice to either complete a form so that a loan officer can call you back to discuss your options or you can complete their online Pre-Approval form.

Like other lenders, once you are pre-qualified you will apply for your Certificate of Eligibility online. PenFed will order an appraisal of the home you want to buy and then review the appraisal result when it’s ready alongside your credit and income information.

Finally, rates and terms are locked in, and PenFed works with you to select a title company, most likely PenFed Title, LLC, and they schedule your closing to transfer ownership. The entire process takes about four weeks to six weeks.

PenFed has an autopay process, but it does not come with a discount. Consumers can get service through the online Pre-Approval or Call Back forms, or by calling 800-970-7766. There are branches in the Washington, D.C., area where you can schedule an appointment to meet in person.

3. Navy Federal Credit Union

NFCU is a member-owned, not-for-profit credit union founded in 1933 and federally insured by NCUA. They earned our nod for best 15-year fixed-rate loan because their current rate, 2.375%, is the lowest among lenders. NFCU also stands out because of its unique service programs that support that low rate.

NFCU’s exclusive Home Squad and Realty Plus programs assist you with your loan, finding a real estate agent, title services, and loan services through the life of the loan. Realty Plus not only matches you with a local, specially trained real estate agent but also gets you $400 to $8,000 cash back on your loan. They offer a rate match guarantee and Freedom Lock, which allows you to lock in new, lower rates at no cost, no PMI requirements, and no down payment. Their current 30-year rate is 2.5%.

The NFCU Homesquad offers professional step-by-step guidance and advice to keep you on track as you work through the loan pre-approval, certificate of eligibility, appraisal, and your credit and income history analysis. NFCU works exclusively with military personnel and families and shows high ratings in customer service and satisfaction.

You can set up automatic payments for your mortgage but there are no discounts for this. For consumer service, stateside reps are available 24/7 at 888-842-6328 and internationally at 1-703-255-8837. You can also contact NFCU by secure message, website chat, social media, and in person.

4. USAA

USAA is an organization that offers military members and their families a comprehensive range of financial products and services that are competitively priced. They offer benefits, insurance, advice, banking, investment products, specialized financial resources, and member discounts.  

USAA lends nationwide to veteran borrowers seeking a jumbo home loan all the way up to $3 million without needing to pay private mortgage insurance, and wrapping the VA funding fee into the loan.

USAA’s VA loan products include a fixed-rate 30-year purchase loan with rates starting at 3.25%, a jumbo fixed-rate purchase loan at 4.625%, and two VA refinance loans: the VA interest rate reduction refinance loan (IRRRL) at 3.5% and the VA jumbo IRRRL at 4.625%. The minimum credit score to apply is 620. 

To service your loan, USAA offers an autopay process, however, there are no discounts for using the program. Customer service is available through online chat, mobile app, and by telephone at 800-531-USAA (8722).

5. LendingTree

LendingTree is an online loan marketplace for mortgages, auto loans, small business loans, personal loans, credit cards, and more. Started in 1997 with the goal of making comparison shopping for loans easy, they put the rates online to make banks compete. The company seeks to empower its customers with choice, education, and support through their website services.  

Fewer lenders offer the ARM product compared to the fixed-rate purchase and refinance loans. Therefore, we chose LendingTree as the best source for finding a competitive ARM loan because you fill out a single application and many lenders will see your application and offer their best terms. The large supply of lenders on LendingTree provides the borrower with more choices to compare.

Read Also: How to get Pre-approved for a Va Home Loan

You can find all of the VA loan products we’ve reviewed so far at LendingTree. Current rates for the ARM loans range from 2.8% to 3.1%, and you can find 5-year, 7-year, and 10-year ARMs. VA ARM loans limit rate increases to 1% and no more than 5% over the life of the loan.

The minimum credit score required by most VA lenders is 620, but if yours is lower than that, you may find an eager lender willing to work with a lower score. Interest rates will be much higher for borrowers with lower credit scores, however.

Regardless of which lender you choose on LendingTree, the loan process for a VA loan will require an eligibility certification; evaluation of the borrower’s credit, income, and debt situation; plus an appraisal and home inspection. Plan on four to six weeks for the entire process.

Working with a lender through LendingTree means you’ll be working with a company that has some technology savvy. You’ll find auto payment options for your mortgage, but don’t expect a discount for using it. It’s become so convenient for borrowers that lenders just don’t need to entice borrowers with lower rates for using autopay anymore.