Where to get a VA Home Loan? This is a question a lot of military service members and veterans ask themselves. After all, it’s the American dream to own a home of your own.
Finding the right lender is key to unlock this amazing benefit can feel like quite the task. Buying a home require a lot of thought and there are a lot of steps you need to take.
From national banks to specialized mortgage companies, options abound to getting a VA Home Loan. Yet, not all lenders are created equal. You want to work with a company who understands the nuances of VA loans and can guide you through the process.
Benefits of VA Home Loans
VA loans are specifically designed for veterans and active military members. Key aspects include the no down payment requirement and no need for private mortgage insurance (PMI), which distinguish VA loans from mortgage options.
The 0% down payment enables you to purchase a home without needing to save for years to afford the upfront costs associated with buying property. This aspect alone can make homeownership accessible much sooner than it might be otherwise.
Although, we do recommend you talk with a mortgage loan officer and/or mortgage broker about the best option for you. Often it’s a good idea to put a little put of money down to known down the monthly payments.
Another significant benefit is the exemption from PMI, a requirement for many home laon borrowers who can’t make a 20% down payment on a conventional loan. PMI can add to your monthly housing expenses, and avoiding this cost can save you hundreds of dollars each year.
VA Home Loan Eligibility
Eligibility criteria for a VA home loan hinges on service duration and discharge conditions.
Veterans, active-duty personnel, and certain members of the National Guard and Reserves can qualify. Spouses of military members who have died while on active duty or due to a service-connected disability may also be eligible.
Interest rates for VA loans are typically extremely competitive, often lower than those for conventional loans. Why? Lenders are encouraged by Veterans Affairs backing of VA loans to offer favorable terms to veterans and military members.
Where to Get a VA Home Loan?
When seeking to maximize the benefits of VA home loans, you need to work with a bank, credit union, or mortgage company that works with VA loans. Not all lenders do.
While there are a lot of providers are VA Home Loans, thee below lenders are likely the best known.
- Veterans United Home Loans
Veterans United stands out as the largest provider of VA home loans in the United States. Known for its dedicated focus on military and veteran homebuyers, it offers comprehensive support throughout the loan process, making it a top choice for those searching to get a VA loan. - USAA
USAA, primarily serves military members and their families, and has a variety of products from banking, auto insurance that they offer. When it comes to VA loans, USAA offers competitive interest rates and terms. With a long-standing reputation for exceptional customer service, USAA ensures a smooth borrowing experience. - Navy Federal Credit Union
Exclusively serving military personnel, veterans, and their families, Navy Federal Credit Union is renowned for its VA loan expertise. Offering personalized service and guidance, it caters to the unique needs of its members in the military community. - PenFed Credit Union
Pentagon Federal Credit Union, or PenFed, extends its services to military members, veterans, and certain civilian associations that serve the defense community. PenFed is recognized for its competitive VA loan rates and diverse mortgage options. - Quicken Loans by Rocket Mortgage
As a leader in the online mortgage space, Quicken Loans by Rocket Mortgage provides a streamlined application process. Its platform simplifies securing a VA loan, combining convenience with expert support. - LoanDepot
LoanDepot is known for its wide array of mortgage products, including VA loans. With advanced technology and a focus on customer education, LoanDepot simplifies the process of applying for and securing a VA home loan.
If you are searching for a VA loan we don’t necessarily recommend any of the above options. However they are good starting point.
It would be a good idea to ask military buddies and check with local lending options as well. Local banks and credit unions often offer VA loans and good personalized service too.
How to Choose the Right VA Loan Lender
Selecting the right VA loan lender is critical. You want to make the right choice for you and you alone. Here is what we recommend to do at UCMJ.
1. Compare Interest Rates and Fees
Start by comparing the interest rates and fees from different lenders. Providers will often have competitive rates, but it’s the additional costs, like origination fees and closing costs, that can add up. Choose a lender that offers transparent pricing without hidden fees.
2. Check Reviews
Everyone checks reviews online nowadays, right? If you are making the biggest purchase in your life and that will be a significant portion of your paycheck, read reviews online.
3. Check Lender’s Experience with VA Loans
Experience with VA loans matters a lot. Conventional loans do not have the same rules and restrictions and VA loans. Its important that the lender you are working with understands this and can provide tailored services that cater to you as a veteran or active military member.
4. Consider Loan Processing Time
The housing market can be extremely competitive. I know from experience as I’ve been through it myself.
A quick loan process can make a difference between getting the home you want, or getting beat out by someone else.
Ask about each lender’s average loan processing time. A lender that offers a streamlined process ensures you can close on your home quickly.
Application Process for a VA Home Loan
Below are the steps you need to go through to obtain a VA Home Loan.
- Certificate of Eligibility (COE): Before applying, you must secure a COE, which proves to lenders that you meet the service requirements for a VA loan. You can apply for your COE through the VA’s eBenefits portal, by mail, or your lender may be able to obtain it for you electronically.
- Pre-approval: Although not mandatory, getting pre-approved by your chosen lender adds strength to your offer on a home, making you look like a serious buyer. From experience, I can tell you this helps with real estate agents and homeowners. During pre-approval, lenders typically check credit scores and outstanding debt you may have to determine how much they’re willing to lend for that dream house.
- Search for a Home: With a pre-approval and COE in hand, you can start searching for a home. Note that the VA has specific requirements related to the condition and appraisal value of the home.
- Make an Offer and Negotiate: Once you find a home, make an offer with a qualified real estate agent. If the seller accepts, you’ll move forward with the loan process, where your lender will order a VA appraisal. The VA appraisal ensures the property meets VA guidelines and assesses the home’s value.
- Underwriting and Final Approval: Your VA lender will review all documentation, including the appraisal and credit information, during the underwriting process. If everything meets the lender’s and VA’s requirements, your VA home loan will be approved.
- Closing: At closing, you’ll sign all necessary paperwork with a signing agent, finalize the loan, and take ownership of your new home. Remember, you may need funds for closing costs, which the seller or lender might cover partially or entirely.
VA Home Loans
Getting a VA home loan is a significant step toward homeownership for veterans and active military members.
With the right lender and a clear understanding of the process, you’re well ahead of the game.