Best VA Lenders Available and Benefits of Taking a VA Loan

Best VA Lenders Available and Benefits of Taking a VA Loan.

Best VA Lenders: VA loans are a type of mortgage loan backed by the United States Department of Veterans Affairs, or the VA. Through the program, loans are issued via private banks and other lenders and guaranteed by the VA. This helps military service members and their families buy a home with no down payment and easier qualification requirements.

Best VA Lenders Available and Benefits of Taking a VA Loan

VA loans are intended to make home ownership accessible to current and former military members and they allow you to buy a home with no money down at all.

If you qualify for the VA Loan assistance program, you can get a mortgage with no money down from a private lender backed by the U.S. Department of Veterans Affairs. On this article will be highlighting the best VA lenders on the market and benefit of having a VA loan.

Best VA Lenders

Bellow are well drafted choices of VA lenders just for you;

1) Veterans United

1) Veterans United

Veterans United is the largest VA lender in the United States. The lender also offers conventional, jumbo, and FHA loans, even as it caters extensively to military members and former service members.

Veterans United makes it easy to pre-qualify for a loan online and also provides 24/7 customer support from advisors in different branches of the armed forces for those who need extra help with the home-buying process. Better Business Bureau rates them A-.

Lender Info

  • States available: 50
  • Loan terms: 15 or 30 years
  • Minimum down payment: 0%
  • Origination fee: Up to 1%

2) LoanDepot

2) LoanDepot

LoanDepot is one of the largest providers of both VA and FHA loans in the United States, and it offers conventional loans as well.

You can complete most of the application process online, or you can get face-to-face support in one of more than 150 different locations throughout the United States. Better Business Bureau rate them A-.

Lender Info

  • States available: 50
  • Fixed terms: 15 or 30 years
  • Minimum down payment: $0
  • Origination fee: 1% – 5%

3) New American Funding

3) New American Funding

New American is family-owned, but it still provides loans throughout the country. The lender not only caters to military members looking for VA loans but also provides other government-backed loans including FHA and USDA Loans.

You can upload most documents online during the mortgage loan approval process and can get to closing quickly compared with most conventional lenders. Better Business Bureau rating: A+.

Lender Info

  • States available: 48
  • Fixed terms: Up to 30 years
  • Minimum down payment: 0%
  • Prepayment Fee: $0

4) Citizens Bank

4) Citizens Bank

Citizens Bank provides a wide variety of consumer banking and financial products, including not just VA loans but also other types of mortgages and student loans.

It operates in 11 different states and has more than 1,200 local branches spread across the country so getting in-person support is easy if you need help applying for your VA loan. Better Business Bureau Rating: A+.

Lender Info

  • States available: 50
  • Fixed terms: 15 or 30 years
  • Minimum down payment: 0%
  • Origination fee: Not disclosed

5) Rocket Mortgage by Quicken Loans

5) Rocket Mortgage by Quicken Loans

Rocket Mortgage is a non-bank lender that provides the opportunity to complete your entire mortgage application process online. In addition to offering VA loans, you can also qualify for other government-backed loans with this lender including FHA and USDA Loans.

You do not have to talk with a representative to get a loan and can get pre-qualified quickly within minutes. Better Business Bureau Rating: A+.

Lender Info

  • States available: 50
  • Fixed terms: Up to 30 years
  • Minimum down payment: 0%
  • Funding Fee: 1.25% – 3.30%

6) Navy Federal Credit Union

6) Navy Federal Credit Union VA Lender

Navy Federal Credit Union is one of the largest military-focused credit unions in the country. Membership is required, but it’s open to residents of all 50 states, and it may be worthwhile if it helps you qualify for a lower interest rate. Better Business Bureau rating: A+.

Lender Info

  • States available: 50
  • Fixed terms: 10 – 30 years
  • Minimum down payment: 0%
  • Membership: Required

If you are already a member of Navy Federal or if you are willing to join, you may be able to get a mortgage loan at an even better rate than you could obtain with our best nationwide lenders.

7) Local Banks

It can also be a good idea to check mortgage rates and terms with small regional banks—especially if you already have a relationship with a particular financial institution.

Although small local banks may not have a VA loan program as expansive as the lenders above, they may be more willing to give you a loan at a competitive rate if you already do business with them.

Pros & Cons of VA Lenders

It is important to consider the advantages and disadvantages of getting a VA-backed loan from an approved VA lender. Here are a few things to consider when deciding what type of mortgage is best for you.

Pros

  • You aren’t required to make a down payment. Many conventional lenders require at least 10% to 20% down, although some allow down payments as low as 3% or 3.5%. The VA doesn’t require a down payment for its insured loans.
  • Sellers can help with closing costs. This is often not permitted on conventional mortgages, and it can help you save money when negotiating the home purchase price.
  • Qualifying is much easier. You can usually get a VA loan with a credit score as low as 580, compared to the minimum score of 620 that most conventional lenders require.
  • You don’t have to pay PMI. With conventional mortgages, borrowers who put down less than 20% usually have to pay for private mortgage insurance, which can add hundreds to your monthly payment.
  • You can finance a fixer-upper. VA home improvement loans can be used to purchase a renovation project or to facilitate qualifying improvements to your current home, such as bringing it up to local living standards.

Cons

  • No down payment means more interest. If you put down a lower down payment, you will have to borrow more and pay more interest on that debt over time.
  • You could go underwater. A low down payment or no down payment puts you at risk of owing more than the home is worth if the home’s value declines. This is could make selling the home impossible.
  • No second homes or investment properties. You can only get a VA loan for a primary residence.
  • Fees. There’s an upfront funding fee that could make your loan more expensive than some alternatives.

VA Loan Eligibility

VA home loans are available to active service members, veterans (unless dishonorably discharged), and in some cases, surviving family members. You’re probably eligible if one of the following is true:

  • You’ve served 181 days of active duty during peacetime
  • You’ve served 90 days of active duty during wartime
  • Your spouse was killed in the line of duty and you have not remarried
  • You’ve served six years in the Reserves or National Guard

Your eligibility never expires. Veterans who earned their benefit in long ago are still using their benefit to buy homes.

Benefits of Taken VA Loan

Benefits of Taken VA Loan

  • No down payment on a VA loan
  • No mortgage insurance for VA loans
  • VA loans have a government guarantee
  • VA loans don’t allow a prepayment penalty
  • They come in many varieties
  • It’s easier to qualify for VA loans
  • VA loan closing costs are lower
  • The VA offers funding fee flexibility
  • VA loans are assumable

Conclusion

A VA loan is a good choice if you don’t have perfect credit, or you want to buy a home without a down payment but don’t want to pay mortgage insurance. You will need proof of military service to be eligible and you’ll likely have to pay a funding fee that could add significant cost to your loan.

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