Best VA loan lenders of May 2025

VA loans are a valuable military service benefit backed by the U.S. Department of Veterans Affairs. For decades, they have allowed active duty servicemembers and veterans to buy a home with no down payment, refinance a mortgage, and tap home equity.

However, not all VA lenders are the same. Rates, fees, and services vary from one lender to another. Combining the unique advantages of a VA home loan with an outstanding lender will enhance the value of your well-deserved service benefit.

Yahoo Finance researched national lenders offering VA loans. We’ve examined federal records of lender practices — interest rates, total lender fees, and other affordability factors — and have determined the best VA lenders of May 2025.

In this article:

The Yahoo view: As one of the nation’s largest retail VA lenders by loan volume, Pennymac is an excellent choice for military-related borrowers, and it services many of the loans it originates.

Read our full Pennymac mortgage review

Key benefits

Pennymac often services the loans it issues, meaning it’s likely you won’t be sending your mortgage payment to some company you’ve never dealt with.
If rates go down after you close a home loan with Pennymac, get a $2,000 credit toward closing costs when you refinance within three years.
A Pennymac Pre-Approval shows home sellers that you are a serious and credit-qualified buyer. Plus, you will receive a $1,000 credit to apply to your closing costs.

Need to know

Learn more: Does mortgage preapproval hurt your credit score?

The Yahoo view: Navy Federal is a great VA mortgage lender, and receives 4 stars in our Mortgage Rate category for offering lower-than-median interest rates.

Read our full Navy Federal Credit Union mortgage review

Key benefits

The No-Refi Rate Drop allows you to snag a lower interest rate six months or later after closing — for a $250 fee — without additional closing costs or changing your loan terms.
A rate guarantee states that Navy Federal will match a better mortgage rate offered by a competing lender on the same loan or pay you $1,000 after you close with the other lender.
The Special Freedom Lock allows an interest rate reduction of up to 0.50% if rates move lower before your loan closing.
Military Choice loans allow benefits similar to VA mortgages to current and former service members without further entitlements.
Buy your home through a Navy Federal real estate agent partner and receive $400 to $9,000 cashback.

Need to know

Read our full Rate (Guarantee Rate) mortgage review

Key benefits

With over 350 offices across the country, Rate offers the opportunity to work with a loan officer in person.
Touts rapid loan approval — as quickly as one day.
Offers an app to help you manage and improve your “financial wellness.”

Need to know

Scored well below average in customer satisfaction, according to J.D. Power’s survey.
Offered higher-than-median mortgage rates on loans issued in 2024, according to government data.

The Yahoo view: Veterans United is unparalleled in customer service ratings, but Yahoo Finance found the mortgage lender’s interest rates to be only average when compared to national mortgage lenders.

Read our full Veterans United mortgage review

Key benefits

Veterans United received the highest score among all lenders considered in the 2024 J.D. Power Mortgage Origination Satisfaction Study.
Offers 24/7 customer service that reflects the international nature of military service.
Has ample educational resources for first-time home buyers, including a home-buying book and web course, on a clean, easy-to-navigate website.
Provides counseling for potential borrowers who are looking to improve their creditworthiness.

Need to know

The Yahoo view: PenFed credit union is an outstanding choice for refinancing, offering VA cash-out refinancing, and a no-cost solution on the Streamline refinance.

Read our full PenFed Credit Union review

Key benefits

PenFed offers a no-closing-cost refinance on the VA Streamline refi, as well as a cash-out refinance option.
No stringent membership qualifications, unlike some credit unions.
A “Power Buyer” program aims to help you compete against cash buyers, with an up-front loan approval and a 60-day rate lock.

Need to know

PenFed offered lower-than-average mortgage rates to borrowers in 2024, according to Yahoo Finance’s research of government data.
However, its all-in loan costs were much higher than average. Be sure to read your loan estimate and consider both the interest rate and lender fees.

The best VA lenders will:

Help you confirm your eligibility. (See “Certificate of Eligibility” below)
Walk you through the loan process before it begins.
Explain mortgage terms as you encounter them.
Assist you in completing a loan application.
Walk you through the timeline to closing.
Offer you a competitive combination of a low interest rate and limited fees.
Understand and appreciate the fact that you’ll want to shop multiple lenders.

Yahoo Finance tip: VA loan qualification standards do not set minimum credit score requirements to buy a house, but lenders may establish their own eligibility requirements. And VA-backed mortgages do not have set interest rates. So, lenders may require a minimum credit score, and mortgage rates vary widely from one lender to the next. That’s why it is important to shop for more than one lender.

VA loans are an exclusive benefit for members of a U.S. branch of military service or veterans. Eligible surviving spouses can also qualify. Government home loans administered by the Department of Veterans Affairs, VA loans have unique benefits and flexible approval guidelines. VA loans also allow plenty for a buyer to negotiate: Sellers can pay for discount points, closing costs, or offer any other cash concession up to 4% of the loan amount.

The best VA home loan lenders will offer the full slate of VA mortgage types. They’ll also offer options for VA mortgage refinancing, which we’ll cover a little later. Here are your options for VA loan types:

Buying a home with a VA loan allows most borrowers to qualify without making a down payment. It’s a lifetime benefit that can be tapped again and again. A VA loan can be used to purchase a single-family home, townhouse, manufactured home and lot, or a multifamily development with up to four units.

This is a type of purchase loan program designed for buyers interested in buying a condominium. VA-backed loans have specific guidelines for the types of condos that will be approved.

When a VA loan has a fixed mortgage rate, it means the interest rate that does not change for the life of the loan. Terms typically range from 15 to 30 years.

A VA adjustable-rate mortgage begins with an introductory rate and then varies at pre-determined intervals. For example, a 5/1 ARM keeps your rate the same for the first five years before changing your rate once per year.

With a VA energy-efficient mortgage, you can make up to $6,000 worth of energy-efficient upgrades to your home. This loan is combined with a purchase mortgage or a Streamline refinance (IRRRL) and closes on the same day. So, it takes a little planning ahead, but it can add value to a fixer-upper you are buying or to your existing place as part of a Streamline refinance.

VA Alteration and Repair loans

Much like the Energy Efficient Mortgage, the VA Alteration and Repair loan is a piggy-back mortgage that provides funds for renovation to a property at the same time it is being purchased or refinanced.

With housing inventory so meager, many would-be homeowners are considering building a new home. A VA construction loan can fund the building of the house and even the land it sits on. One caveat: A construction loan cannot be used to purchase a new home built and for sale by a developer. You would use a regular VA purchase loan to buy that house.

If farm living is the life for you, the VA Farm Residence loan may just be the ticket. The mortgage can be used to buy, build, renovate, or otherwise improve a farm residence. However, it can’t be used to fund a farm business, equipment, or livestock.

These days, with higher mortgage rates, assumable mortgages can be your superpower. As a VA-qualified buyer, you can buy a VA-financed home from a seller — who very likely may have an attractively low interest loan rate. You get the home and the low mortgage rate. You’ll likely have to pay the existing homeowner a decent price for the home, including their home equity, but that low mortgage rate will serve up significant savings for years.

Under this program, homes located on Federal Trust Land by a Native American veteran or eligible spouse might qualify for a purchase loan or refinance. The definition of Native Americans includes federally recognized tribes and nations as well as traditional Pacific Islander communities.

Mortgage refinancing is the process of lowering your mortgage rate by replacing it with a new loan. The VA offers two primary refinancing options.

IRRRL, pronounced “Earl,” is the VA Streamline refi mortgage. Simpler and faster to qualify for and close, it is the most popular refinancing option offered by the VA. Use it when current mortgage rates have fallen to lower your monthly mortgage payments or shorten the payoff on your loan.

A VA cash-out refinance loan taps your home equity with a new mortgage. It’s particularly beneficial when interest rates have fallen below your current loan’s annual percentage rate (APR).

Getting a VA home loan is nearly identical to qualifying for a conventional mortgage or any other type of loan. There is lots of paperwork and plenty of documents to exchange, and it can seem that the whole process takes forever.

But you don’t want to take any shortcuts.

Talk to three or four lenders. Get an idea of what it will take to qualify with them and get a mortgage preapproval. You’ll receive a Loan Estimate, a short document outlining the expected terms and interest rate you will be eligible for. But remember, this is not a binding agreement.

You’ll want to pay attention to any origination fee, other lender and third-party fees, and the loan’s estimated APR. Circle that monthly payment and make sure you’re good with it. Do this with each lender, and with a preapproval letter in hand, shop for your new place. When a purchase agreement is signed, select your preferred lender and apply for an official mortgage approval.

Four to six weeks later — if everything goes as planned (even though there’s likely to be a bump or two along the way) — you’ll close on the house.

Enjoy that cup of coffee in your new place, homeowner.

Learn more: How to get a mortgage

While VA loans have no mortgage insurance requirement, they do charge an up-front VA funding fee. Alas, there are few free rides. But look on the bright side:

VA funding fees can be waived for certain borrowers.
It can be paid by the seller, lender, or anyone else you can convince.
You can roll the funding fee into your mortgage if you’re short of cash.

Borrowers are exempt from paying the VA funding fee if they are:

Receiving VA compensation for a service-connected disability.
Entitled to receive VA compensation for a service-connected disability but instead receive retirement or active service pay.
An un-remarried surviving spouse of a veteran who died in active service or from a service-connected disability.
A service member with a proposed or memorandum rating from the VA eligible for compensation due to a pre-discharge claim.
On active duty and has been awarded the Purple Heart.

A VA Certificate of Eligibility is required to qualify for a VA mortgage. Most lenders can download the certificate from a government system, which will help you acquire your COE. You can also get it yourself from the VA eBenefits website.

We considered the following mortgage lenders providing VA loans for our best-of list, but they weren’t quite as strong as our top picks:

If you’re considering using a bank as one of the mortgage lenders competing for your business, the best bank may be the one you already use. Banks sometimes offer benefits to home buyers who are already customers, such as closing costs credits or lender fee discounts.

Veterans United is the top VA mortgage lender in America by loan volume, according to 2024 Home Mortgage Disclosure Act data. It also had the highest customer satisfaction score in the 2024 J.D. Power Mortgage Origination Satisfaction Study. Yet, other factors, including near-median interest rates, kept Veterans United from winning the Best Overall VA Lender award from Yahoo Finance — instead, we chose Pennymac.

Our overall pick for the best place to get a VA mortgage is Pennymac. It garnered high marks for lower-than-median interest rates — and affordability, our measure of a wide variety of loan options. Those are two of the most critical factors in choosing a mortgage lender. However, shopping multiple lenders can help you get the best deal on what undoubtedly will be one of the largest debts you’ll ever assume.

Your VA loan interest rate will depend on various factors, including which mortgage lender you choose. According to Zillow data, 30-year fixed rates have hovered in the low-to-mid-6% range for months, while 5/1 ARM VA loan rates have been lingering under 6.5%. The 15-year VA loan rates have remained mostly between 5.5% and 6%.

Interest rates constantly change; however, Yahoo Finance analyzed 2024 Home Mortgage Disclosure Act data to determine which VA lenders offered the best rates. Of the lenders we reviewed in this best VA lenders list, Navy Federal Credit Union, Pennymac, and PenFed had 4-star scores (out of 5 stars) for the lowest interest rates. To get the most competitive interest rate, we urge you to shop at several lenders, ask for a Loan Estimate with zero discount points, and have the lenders compete for your business with a combination of the best interest rate and lowest fees.

Yes, shopping with different mortgage lenders for your VA loan is always a good idea. Get preapproval letters for three or four lenders to see which offers you the best deal.

Methodology:

Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2024 Home Mortgage Disclosure Act data from almost 5,000 mortgage companies, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.

Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.

Advertisers or sponsorships do not influence ratings.

This article was edited by Laura Grace Tarpley.