The best VA loan lenders of December 2025

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Mortgages backed by the U.S. Department of Veterans Affairs, or VA loans, are a valuable perk for military-affiliated home buyers. For decades, they have allowed active duty service members and veterans to buy a home with no down payment, refinance a mortgage, and tap home equity. Here are our picks for the best VA lenders of December 2025.

The best VA mortgage lenders: December 2025

Best VA lender overall: Pennymac

Why Pennymac mortgages stand out: As one of the nation's largest retail VA lenders by loan volume, Pennymac also ensures your loan will close on time.

Pennymac VA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: VA purchase loans: 580. VA cash-out refinance: 620. VA IRRLs: No minimum for current customers.

• Minimum down payment: 0%

• Median debt-to-income ratio: 42%

Pros

• Pennymac offers a "close on time guarantee." If your loan closing doesn't close as scheduled, you'll receive a $2,500 lender credit.

• Pennymac often services the loans it issues, meaning you’ll probably be working with the same company during the homebuying process and your homeownership years. Many lenders sell customers' mortgages to servicers, so you deal with a different company when making payments.

• 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.

• Pennymac's 580 FICO minimum is among the lowest of our top picks for VA lenders.

Cons

• Pennymac offered below-average interest rates on loans issued in 2024. However, overall loan costs were much higher than average.

Up next

• Is now a good time to get a VA loan?
• What is a VA construction loan, and how does it work?
• When will mortgage rates go down significantly? This week’s decreases are relatively small.

Best for the lowest VA mortgage rates: Navy Federal Credit Union

Why Navy Federal Credit Union mortgages stand out: Navy Federal is an outstanding choice for VA loans. One main reason: Government data shows NFCU offered borrowers best-in-class interest rates and loan costs last year.

Navy Federal Credit Union VA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: "Navy Federal does not disclose its credit score thresholds for proprietary reasons."

• Minimum down payment: 0%

• Median debt-to-income ratio: 41%

Pros

• A Yahoo Finance analysis of national mortgage data revealed NFCU offered below-median mortgage rates and loan costs in 2024.

• 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.

Cons

• NFCU's "no disclosure" policy on credit scores is unhelpful to people shopping for lenders.

• Navy Federal says published mortgage rates are "as low as …" and have a built-in 1% mortgage origination fee, which "may be waived for a 0.25% increase in the interest rate." We're not sure a quarter-point rate increase for the life of the loan is a good deal to avoid a 1% lender fee.

Best for renters seeking a VA loan: Rocket Mortgage

Why Rocket Mortgage stands out: Rocket Mortgage gives renters a closing cost credit equal to 10% of annual rent paid, up to $5,000.

Rocket Mortgage VA loan details

• Availability: All 50 states, including Washington, D.C.

• Minimum credit score: 580

• Minimum down payment: 0%

• Median debt-to-income ratio: 42%. Rocket states on its website, "If your credit score is below 640 with the down payment being less than 5%, we require an overall DTI, including your mortgage payment and all other debts, to be no higher than 45%."

Pros

• A RentRewards program provides a closing costs credit equal to 10% of your yearly rent up to $5,000.

• Following its purchase of Redfin, Rocket Mortgage clients now have access to a network of real estate agents who won't ask for an exclusive agreement before showing you a house.

• Rocket's 580 FICO score minimum is among the lowest of the lenders on our list.

• Ranks above average in customer satisfaction according to J.D. Power.

Cons

• Yahoo Finance analysis shows Rocket Mortgage offered borrowers average interest rates but higher-than-average loan costs in 2024.

Read our complete Rocket Mortgage review.

Best for customer satisfaction: Veterans United

Why Veterans United mortgages stand out: Veterans United has unparalleled customer service ratings, outscoring all other lenders considered by J.D. Power.

Veterans United VA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: 620

• Minimum down payment: 0%

• Median debt-to-income ratio: 44%

Pros

• Veterans United received a high score among lenders considered in the 2025 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 homebuying book and web course, on a clean, easy-to-navigate website.

• Provides counseling for potential borrowers who are looking to improve their creditworthiness.

Cons

• Veteran United's minimum 620 FICO score is among the highest of the lenders on our list.

• According to a Yahoo Finance analysis of 2024 Home Mortgage Disclosure Act data, Veterans United's interest rates and loan costs are near the median of many other VA lenders.

Read our complete Veterans United review.

Best for face-to-face service: Rate

Why Rate mortgages stand out: Rate (previously Guaranteed Rate) is a top-20 VA lender by volume with a network of local branches for those who appreciate personal service.

Rate VA loan details

• Availability: All 50 states and Washington, D.C.

• Minimum credit score: "No minimum score."

• Minimum down payment: 0%

• Median debt-to-income ratio: 45%

Pros

• With 350 offices across the country, Rate offers the opportunity to work with a loan officer in person.

• Promotes offering a mortgage preapproval decision in just five minutes.

• Offers an app to help you manage and improve your "financial wellness."

• Rate's "no minimum score" guidance is unique among our top VA lender picks.

Cons

• Scored 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.

Best for VA loan refinancing: PenFed

Why PenFed Credit Union mortgages stand out: Pentagon Federal Credit Union is an outstanding choice for refinancing. The lender offers VA cash-out refinancing and a no-cost solution on the VA streamline refinance.

PenFed VA loan details

• Availability: All 50 states and Washington, D.C., as well as Puerto Rico, Guam, and Okinawa, Japan

• Minimum credit score: 620

• Minimum down payment: 0%

• Median debt-to-income ratio: 44%

Pros

• PenFed offers a no-closing-cost refinance on the VA streamline refinance as well as a cash-out refinance option.

• No stringent membership qualifications, unlike some credit unions.

• PenFed offered lower-than-average mortgage rates to borrowers in 2024, according to Yahoo Finance's research of government data.

Cons

• PenFed's all-in loan costs were much higher than the median in 2024. Be sure to read your loan estimate and consider both the interest rate and lender fees.

• PenFed's 620 FICO minimum is among the highest of our top picks.

Who offers the lowest VA loan rates?

Among the best VA lenders listed here, one stands out for having the lowest mortgage rates: Navy Federal Credit Union. In fact, when it comes to low rates, NFCU rises above all 43 lenders that Yahoo Finance has reviewed.

According to 2024 Home Mortgage Disclosure Act data, the latest information available, Navy Federal offered below-median mortgage rates to borrowers last year — and below-median loan costs. That's a powerful combination that no other lender we considered offered.

How to qualify for a VA loan

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 with more than one lender.

VA Certificate of Eligibility (COE)

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 website.

The VA loan funding fee

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.

• Fees can be paid by the seller or lender in certain cases.

• You can roll the funding fee into your mortgage if you're short on cash.

VA funding fee exemption: How to get one

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

• A not 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 who is eligible for compensation due to a pre-discharge claim

• On active duty and have been awarded the Purple Heart

How to get a VA loan

VA loans are an exclusive benefit for members of a U.S. branch of military service or veterans. Eligible surviving spouses can also qualify. As government loans administered by the Department of Veterans Affairs, VA mortgages have unique benefits and flexible approval guidelines.

VA loans also allow plenty for a buyer to negotiate: Sellers can pay for discount points and closing costs or offer any other cash concession up to 4% of the loan amount.

Qualifying for a VA home loan is nearly identical to qualifying for a conventional mortgage or any other type of loan. There is a lot 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 your eligible interest rate. 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 — you'll close on the house.

Pros and cons of VA loans

There are benefits and drawbacks to VA mortgages. You just need to understand them so you can decide whether a VA loan is worth it.

Pros

• There is no down payment requirement.

• Offers relaxed credit qualifications.

• VA loans have no private mortgage insurance (though there is a funding fee).

• VA loans often have favorable mortgage rates.

• VA closing costs are limited.

• There is no prepayment penalty for paying off your mortgage early.

• A VA loan can be assumable — that is, transferred to another buyer.

Cons

• There is a VA funding fee, though it can be waived in certain circumstances.

• The mortgage is available only on your primary residence.

Best VA loan lenders: FAQs

What is the best bank to have a VA mortgage with?

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 cost credits or lender fee discounts.

Who is the number one VA mortgage lender in America?

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.

What is the best company to use for a VA mortgage loan?

The best company to choose for a VA loan depends on your priorities. Are you refinancing? Do you prefer to deal with someone in person? Are you a renter looking for a boost to homeownership? Each of our "best-of" lenders excels in some way. However, shopping with multiple lenders can help you get the best deal on what undoubtedly will be one of the largest debts you'll ever assume.

What is the interest rate on a VA loan right now?

Your VA loan interest rate will depend on various factors, including which mortgage lender you choose. According to Zillow data, 30-year VA 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%.

Who has the best VA rate right now?

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.

Should I shop around for a VA loan?

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

Our methodology: How we chose the best VA lenders

Yahoo Finance reviews mortgage lenders based on five primary considerations: 1) Interest rates. Using 2024 Home Mortgage Disclosure Act data from almost 5,000 mortgage companies, we analyze mortgage lenders based 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 total loan costs are compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We also consider 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.

Advertisers or sponsorships do not influence ratings.

Editorial disclosure for mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.

Laura Grace Tarpley edited this article.

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Up next

• Is now a good time to get a VA loan?
• What is a VA construction loan, and how does it work?
• When will mortgage rates go down significantly? This week’s decreases are relatively small.