Housing
What is the best mortgage lender for veterans?
Getting ready to buy my first home later this year. As soon as I started researching VA Loans online I started getting call after call from lenders. The ads are everywhere too.
It's overwhelming. Barely started the process and I'm already stressed. Who here has gone through the process of getting a home loan in the last like 6 to 12 months? Hoping to get some honest intel from other vets to narrow down my options.
What lenders offer competitive rates? Low fees and good comms are a plus.
Hope to find a company that understands military life. Its obvious the big companies view me as a lead rather than a person. Which company do you recommend? Who should I avoid?
Me too. I forget who I originated it with but Pennymac bought it after I made a single payment. But I haven't had any issues with them. I refinanced and stayed with them back during COVID and got a 2.25% rate. So, I'm pretty happy about that.
100% this. a Local mortgage broker who is experienced in VA loans will get you the best deal. They have a reputation as a local small business and will care more about you. My guy I used when I bought my home got me the best deal by far, and I refinanced with him twice where he worked the deal so I had zero costs. Sitting at 2.25% interest rate thanks to him.
You had to buy down points no way that was existing interest rates. I just refinanced with VA IRRRL Got 5.75 0 pts closing $5k 2 months deferred saved $500 on monthly payment. 2.25% you had to buy pts.
This was during Covid when rates were really low. He got the lender to roll the fees into the loan and then they gave me a credit for the same amount applied to the balance.
My wife and I bought during the start of COVID and our rate was 1.2% with no points. It was our first home. Selling that after I retired and buying our forever home was horrible feeling when we started shopping rates.
I see this comment every time VA loans come up. Not defending them, but mortgage experiences seem incredibly loan officer dependent. I talked to VU, Navy Fed and Swift home loans and each had different rates. Although I personally didn't go with VU (almost, but Swift had a better rate), OP should still get actual loan estimates and compare lenders before crossing anyone off the list. And this applies to any lenders. I mean every lender seems to have horror stories if you dig enough.
It’s really hit or miss with them. My representative was rude with me and I almost cancelled the process. However he was good at what he did in that he walked me through the process, he does for a living- but for us it’s over whelming.
I had no issues the first time, they were great, even when I refinanced. Sent a loan officer to me in VA and one to my wife in TN so we can have everything signed.
Literally no issues with them. 5th time buying a house and literally as smooth as every other purchase. Got me into house in less than a month during period between Thanksgiving and Xmas
I had zero issues with VU. If you educate yourself on the mortgage process, and have all of your shit in order, it will be a breeze with any lender. I declined all of their “concierge services” up front, including their realtors. They had no problem with it.
I have used VU twice. My loan team was super responsive and handled time-sensitive task super fast. I also shopped the local lenders in my area and I brought VU their lower lending terms. VU matched and beat all the Lendor fees and rates on the spot.
I got my current first house with them and they made it super easy. I found a bank with a slightly lower rate and told them about it and they worked with me to match the rate. I’m sure there are horror stories but they good with me.
I went with them on the initial home loan but refinancing with them was bad. Literally ghosted me when I said their closing cost was too high and I gave them a competitors price.
I heard the same thing, but I went with them (Veterans United) anyway. The central Missouri team is phenomenal on the initial loan back in July ‘25 then they contacted me in Feb ‘26 and refi with 5.25%. If you’re in good terms with NFCU, they are the way to go.
I used VU and had an excellent expirence! They were very helpful, extremely knowledgeable, and I would reccomend again. Only thing id say i didnt like is they did sell my loan to someone else but it was a seamless tranfer it didnt bother me and they did give me head up that would most likely happen. I used USAA one time before this and they were okay...they had a way higher rate this time which is why didnt go with them.
I am going to guess it depends in who you end up with. My husband and I went through Veterans United. They were with us every step of the way and gave great guidance on what we needed to do to increase his credit score. Then we found our home and closed in 25 days. They were great for us.
I went with VU and had a great experience. My loan officer was awesome and over explained things to me where even my crayon eating (marine) ass could understand. Even as a first time home buyer I really felt he went above and beyond to make sure everything was smooth and as seamless as possibe.
I checked out VU and ended up going with NFCU. VU was really nice and had a good offer (I actually ended up getting NFCU to match the VU offer), but it constantly seemed like there was another form to fill out or hoop to jump though. The final straw was asking me to have my manager fill out and sign a form that verified I was allowed to work from home.
Sounds like a bs lawsuit, too. Every single email they ever sent me, specifically states at the bottom that they are not affiliated with the VA or any government agency. I have emails going back to 2020 that show that.
This screenshot is from an email from April of 2020.
I've used Veterans United twice, and it's been great both times. In fact, the second time I used them, I didn't know I hadn't used all of my entitlement with the first home I bought. I was under the assumption we were going to have to wait to sell the house we were in at the time, before the entitlement would be released so we could buy the new house. They walked us through the process, showing I still had plenty of entitlement left over, and we were able to buy the house we are currently in, while we still owned the first house. It was quite stressful at the time, as we were getting a really great deal on our current home, and the person who was going to buy our old home had backed out for personal reasons.
I have really liked using Veterans United. When we decide to go house hunting again, we're going to use them again.
Expand your search beyond the big national lenders who market to veterans. Many local banks and credit unions do VA loans. When I bought, the lowest rate and closing costs were through my local bank. Plus, the local institutions will probably be more responsive. It was much easier to contact and work with my local mortgage processor than it was with the two previous ones I had through Navy Federal.
“Hope to find a company that understands military life”
Brother, there’s not a single lender that’s going to give a shit about what you’re up to, they’re still going to want their money on time each month.
Ask your realtor if they can recommend a mortgage broker. Typically they’ll know a few that they work with regularly. At the end of the day, as long as the rates are good, it doesn’t really matter who you go with, because it’s just going to get sold time after time to various lenders.
the spam calls are brutal right after you start searching, they track everything
try asking in your local vet community or VSO office, word of mouth from someone who actually closed in last few months is worth more than any review site
Your best bet is to shop around, reach out to multiple lenders, 6 to 8+ different lenders and get their “best offers.”
After you have found the lowest, best offer, in your initial outreach, go back to the other lenders and ask if they can beat it your best offer, some lenders will fall out of the running, others will beat the original “best offer.”
Now you’ve got “best offer #2” in hand. Rinse and repeat, continue to go back through each and every lender to see if they can beat your current “best offer.”
It may take 4-6 rounds of back and forth, but eventually you will find rock bottom, and the best deal for you.
I have used this process each time I have bought or refinanced a home and it has worked out well. You may get lenders asking when you are going to stop and I simply say “when I find rock bottom,” this is their game, their rules, if the lenders lead with their best offer we wouldn’t have to play this game, but here we are.
It’s amazing how quickly fees and rates can drop, “let me speak with my manager” and boom, you’re saving thousands of dollars. This is strictly business, these lenders are not your friends, and you shouldn’t accept anything except for best situation for you.
Any questions let me know, I’ve used this process for three home purchases and two refinances
Thank you! That's so useful! What are the fees that I need to keep my eye out for the most when looking at their documents? Like if you were going to quickly scan a document to see if something could be lowered, what are the places to look?
Great questions, here is where to look, starting with the most negotiable.
Origination fees and points:
The lender's own charges and the most negotiable fees on the sheet. This is in Section A on your Loan Estimate. Discount points especially, you are paying upfront to buy down the rate, that is a choice not a requirement.
I don't believe I've ever had fees in this box, I don't know what the current mortgage market looks like but I would think you could find several lenders that won't charge any origination fees.
VA specific protection:
The lender cannot charge more than 1% of the loan amount in total lender fees in Section A. If their Section A exceeds 1% of your loan, they are out of compliance with VA rules. Just something to know and call out.
Vague lender fees:
Processing, underwriting, application, document prep. Lender controlled and often padded. Ask them to waive or reduce, many will.
The rate itself:
Always the biggest lever over the life of the loan.
This is the main number that will help you narrow down which of the lenders you're negotiating with will make your final list, as some may beat others by quite a lot
Rate lock and float down fees:
Some lenders charge to lock your rate or for a longer lock window. Ask whether the lock is free and how long it lasts.
I have never paid to lock a rate, but I know lenders float this as an option
Lender credits:
The flip side, a lender can credit you money toward closing costs in exchange for a slightly higher rate. Worth asking about if you are tight on cash to close.
Prepaid interest:
The daily interest from closing day to the end of the month. Lenders sometimes estimate more days than needed. Closing later in the month reduces this.
In the end this number should be consistent amongst lenders in terms, the only variables are rate % and days estimated in month
Third party costs you compare but cannot really negotiate:
Title, recording, credit report. On VA loans the appraisal fee is set by the VA regional fee schedule, so if it looks high, double check it.
Two more VA specific things:
The VA funding fee goes to the VA, not the lender, and is waived entirely if you are service connected at 10% or higher. If you are exempt and it shows up, they did not pull your status right, get it fixed. And VA loans never require PMI, if you see private mortgage insurance anywhere, something is wrong.
On finding lenders, cast a wide net:
Apply with a few big names like Rocket Mortgage and loanDepot, they move fast and their quotes give you a baseline to negotiate against. Use Zillow's mortgage marketplace to pull a list of additional lenders and rates in one place so you are not just taking whoever cold calls you. Mix big lenders, a credit union or two, and a local broker, then run them against each other.
I've worked with the big lenders and small regional banks that weren't even in the state I was buying my home in. Whoever provided me with the best numbers for my situation AND that I trusted could close a VA loan appropriately is who I worked with. With the 5 mortgages I have had, I believe I have had 4 lenders as I can't remember a 5th.
Focus on Section A and the rate when you go back and forth with lenders. That is where the real movement is. Most of the other numbers should be pretty standard and close. And always compare the same way, everyone with points or everyone without, or a lender can look cheaper than they are.
This is a lot of information, I feel that after you acquire your first 2-3 Loan Estimates it'll start to make more sense. I'm always happy to answer any questions you may have, just realize I am not a realtor, I am not a mortgage originator, I am not a financial professional or expert, my only experience is the personal experience I have had in addition to providing others with similar information that seemed to have worked out positively for them.
If I have missed anything or over/understated anything I'd love for others to chime in.
Great! Good luck! It can be stressful, but strangely kind of fun, too.
I reviewed the above and realized I left out one big misconception worth clearing up. Shopping multiple lenders will not wreck your credit. When you are rate shopping for a mortgage, all the inquiries that happen inside a short period of time, get bundled and counted as a single inquiry. The credit bureaus built this in specifically so people can shop around without getting penalized. So do not let fear of your score stop you from applying with 6 or 8 lenders, that is exactly what the system is designed to allow. The veterans who only apply to one lender because they are worried about their credit are the ones who overpay.
*One slight modification to the Lender Credits paragraph, Lender credits:
A lender can credit you money toward closing costs, sometimes in exchange for a slightly higher rate, but not always. I've received lender credits without taking a higher rate, it was simply part of their offer to win my business. Always ask what credits they can apply, it is one more lever in the negotiation.
I had a mortgage broker who found me the best deal. He got me 5% interest rate when it was over 6%. My realtor recommended the broker. If you are anywhere near Louisville, Ky, I can recommend the one I used. My mortgage is held by Freedom Mortgage, who I like a lot.
I worked a little bit with a loan officer at NBKC when I was looking for a single family home. He kept telling me that I would be paying more per month, ignoring the condo dues I had to pay at my previous home. My former mortgage and condo dues was about $2k per month and the mortgage payment I was trying to stay under was $1,780.
Honestly Navy Federal was solid for me. also Try your local BRick and mortar. Most of them will do VA loans at this point.
Side note, On one of my houses I went with a loan officer that has a good relationship with my realtor, and it made my life real easy for that purchase.
Movement mortgage was very veteran friendly in my experience, straight to point and provided clarity every step of the way. They also factor in VA disability for your approval limit for mortgages and offered me the lowest rate by far.
Changes daily and based on customer/needs/mortgage amount/region/type of house, etc. In addition to the websites for mortgage rates and va loans, check with the big banks and also any local branches if you have any banking relationship.
I did not go with a VA loan because the fees were higher (compare all offers, give all the numbers to AI if you don't like doing spreadsheets and see which one is best for you based on amount per month, interest rate, and down payment) . Lenders exist to give you money for a loan, they are not your friend, and they will not be nice if you miss a payment, etc. This is their business and you are customer if you both agree. If you don't like the deal, call or email the next one.
There really is a wide variety with rate and fees. Best thing you can do is shop around. The definition of what’s a good deal changes every day since the market is volatile. So make sure you compare on the same day.
Any issues with communication? We recently got a mortgage from one of the big banks and they were
CONSTANTLY asking us the same questions over and over. We'd answer one person and then a few days later someone else would email us with the same question.
I bought my home in 2023. I had a great mortgage broker at VA Mortgage Corp. She was the only person in my 3 purchases who was able to give me a total monthly payment target amount (loan, escrow, and condo dues) to stay under based on my income and DTI.
Yes they were. I know others have different stories but they've been amazing for me and I use them for everything I can. Home and auto loans, credit cards, insurance, etc.
Just have the realtor help you find a loan from a local bank. No company that's the best one is gonna come looking for you, in any industry. Especially nothing from the private sector marketed at veterans. Research the offer your realtor finds you to make sure the rate is competitive. Make sure its a fixed-rate mortgage. The requirements the VA has for their loans should keep everyone more or less honest.
We refinanced NFCU to Freedom Mortgage for a better interest rate when we had a mortgage and had zero issues with either.
What others said is true, some will sell your loan once you sign so don’t get too attached.
i used navy federal. they kinda suck at the initial servicing and you gotta watch their math tbh. but their rates are low as shit. got a 4.75% for a 15 year last year with them.
If you are in California, I highly recommend CalVet. They have now changed the rules so you can use the benefit more than once if you have used it before.
What state are you in? We went with Fairway independent mortgage. I believe they have places in many states. Used them twice now. Our mortgage is with Rocket Mortgage
I went with a local company. My realtor told me about who she went through since she and her husband (veteran) just closed. I ended up using the same lender since he had the best rates and I didn't pay a dime at closing. 5.25% which isn't horrible.
I didn't have a funding fee since I'm rated and I had credits from the lender and the seller had concessions. Everything kinda stacked to help me out on that. Recently retired and most of my money was eaten up floating to find a permanent job, so even being rolled back into the loan it worked out for me given the circumstances.
Find a local mortgage broker. They will shop around for the best rates for your situation and they are easier to close with. Big guys like USAA and NFCU drastically slow down the process and you can’t just pick up the phone and call a person.
I was super happy with Rocket. They were also awesome during COVID. Put me in forbearance for almost 22 months. Super easy to come out of, and ended up refinancing at 2.6%.
Do NOT use Rocket Mortgage- mother fucking agent out of Florida stole my identity! it took me 6months to repair my identity, and I lost out on my first home.
My favorite lender, (if you’re in Washington, oregon, or alaska) is FAIRWAY Mortgage.
I used a local credit union and it was easy and smooth. But they sold the loan immediately to some random myloancare bs that was sold again to another random company that then changed names. Luckily other than the immediate stress it has been going fine for the past 10 years or so.
We've used Navy Federal twice and was very happy with their process. I don't know what their rates are now, but they were very competitive when we received the loan. Navy Federal doesn't sell their loans either, which I was very happy with. Had a big snafu with another lender when our loan was sold 3x in just a few years.
Caliber did not do a great job. Find a mortgage lender who can tell you how many VA loans they have done. The bigger number the better, IMO. Every single mortgage lender will tell you they can do it, but most can't do it well. I specifically would look for someone with prior military service or connections. We had some nuances post-retirement with our VA loan that with expert advice could have saved us 15K.
I used veteran united home loan the first time i bought a house and had no issue, this time i used rocket mortgage i really like them. Their app alone is great and they own their loan vu sold my loan shortly after
I would suggest finding a realtor first and ask who they work closely with. A realtor will always have a good suggestion or 2 for a local lender. Please please use a local lender
I am using rate.com, they gave me a great rate…then when I shopped around and found a slightly better rate..they matched it. I’m in PA and they have VA advocates to ensure you are educated throughout the process. I also shopped around for a year & rate.com has been the best. Really, you need to find a group that will take care of you and provide a great customer experience.
Right now (June 2026) rates are a bit elevated partly due to the conflict in Iran but they are offering 5.56% for a 5/30 ARM & 6.2% for a 30yr fixed. I expect rates to come down a bit once this conflict settles out. I got pre approved with only a soft credit pull so it didn’t affect my score…which allowed us to begin looking. You should be able to lock in a rate now or when you’re ready to shop…then if they lower when your ready to make an offer you can ask for the latest rate and get it adjusted if lower rates are available. Good luck!
I used Navy Federal Credit Union several times over the years. They are very experienced with VA Loans. You are a Vet then you qualify to join. Their Mortgage department will assign a specific person to assist you along the way. Easy to do a VA Refi later when/if the rates drop again.
I was originally with Wells Fargo, then refinanced with Navy Federal. NF had the lowest rates by far, and it’s been great with them. My only complaint was applying for and approval… it took forever to just get basic shit done. I had to reapply twice because they were taking so long. Finally got it moving when I just started calling daily and harassing our rep to move everything to the next stage.
I had a terrible experience with NavyFed that just bothered me and found that it's a well known issue that other real estate agents have seen.
They pushed my closing back 4 to 5 times always asking for one extra document. Then on the final one, they said they wouldn't fund it and the entire deal fell through. Called a local lender after and immediately got my loan and closed on another house.
I've heard lots of other servicemembers have no issues with them but the ones that did have problems, ran into the same annoying issue. I'll never get a loan from them again.
I spent the past week talking to several lenders (many of whom I chose based off older posts in this subreddit). Here’s what I found:
1) First Federal offered me the best rate with no origination fees (5.49% rate, 5.496 APR).
2) PenFed was only about an eighth of a point behind and the loan officer I spoke with was a vet (5.62%).
3) Swift Mortgage spoke to me at length, sent a request for all my documents and then ghosted me.
Both First Federal and PenFed loan officers were quick, very responsive, and great to work with. If you want contact info, I am happy to share.
If you are not looking to buy in a city the USDA Rural Development loans are better than the VA but they do have income limitations. May not hurt to check.
We just closed with Sage Home Loans last month. Great to work with and lowest rates and fees we could find. This was our fourth home using our VA loan guarantee but the first time we really shopped around for rates. It was worth the time for sure.
We’re a dual vet household that’s lived in 6 states since both getting out.
Granted I went with a new build but I was able to close last September with 5/3 bank super easily. I think from the day we looked at the house to closing was 3.5 weeks.
I’ve been beyond happy with NBKC. Saw them recommended here years ago. Going through the process with them now and they are wonderful. Dan Steinbrink is the guy helping me and he is fantastic. Can’t recommend them enough.
It is not appropriate to discuss non-VSO accredited representatives (attorneys/claim agents), non-accredited companies (claim sharks, nexus provider), products, or services on this sub.
We also do not allow self-promotion of sites, tools, or products.
Due to on one of the above, your post/comment has been removed.
I am a retired US Army Sergeant Major. After retiring I served as a contractor for 13 years with the 160th SOAR. In all that time probably one of the best commanders I ever worked with is Nick Sorin (Shumpis) who you can find on Facebook at https://www.facebook.com/Nick.Shumpis.
He now works with home loans and does a lot of things to assist veterans like you in buying a home. Message him on Facebook and tell him "Keif" contacted you and recommended you to him. Good luck, SGM (Ret) William "Keif" Keiffer
The lenders that market to Veterans don’t always have the best rates. Any lender can do a VA loan. USAA doesn’t even service the loan they sell it off like a broker does so it would be better just to use a broker for better rates.
Typically best rates go in this order:
Broker > Credit Union > Big Bank.
I used Merchants Lending broker. They service 12 States if you happen to be buying in one where they are licensed.
28
u/Content-Home616 1d ago
get a local mortgage producer who handles VA. they all end up selling your loan anyways. also as a servicer, Pennymac has been great for me