Best VA Mortgage Lenders June 2021

Flagstar Bank offers all the major mortgage options (conventional, jumbo, construction and government-backed loans) both online and at its branch locations in 29 states.

The lender has low minimum credit score requirements for some of its loans, which is helpful for first-time borrowers or people who are repairing their credit.

Flagstar won the 2019 Diversity & Inclusion Award from the Bank Insurance & Securities Association. This award goes to member firms that have proven “leadership, innovation, and results in diversity management.” Flagstar was one of only three companies to win in the category.

“Flagstar is unique because we have both the traditional lineup of home lending solutions backed by investors such as Fannie Mae, Freddie Mac and Ginnie Mae, plus our own specialty products that we can put in portfolio on our balance sheet, given we’re also a bank,” says Lee Smith, president of mortgage for Flagstar Bank.

The lender also offers several discount programs, including discounts for borrowers whose employers have a relationship with Flagstar, incentives for returning customers and discounts for first responders, active military and veterans.

Available in All 50 States

Online application process available; in-person branches also are available at 87 retail locations in 29 states.

How to Apply

Flagstar Bank offers several ways for customers to get a mortgage. They can apply online or visit a lender in person. They can also visit a branch location.

Customer support hours, including for email, phone and online chat, are Monday through Friday, 7:30 a.m. to 9 p.m. ET and Saturday 8:30 a.m. to 6 p.m ET.

Speed

Preapproval time is less than three days. Their average closing time is 35 days, which is shorter than the industry average. In some cases, closing can occur in as few as 11 days.

Credit Requirements

Flagstar Bank has mortgage products with minimum credit score requirements of 580.
The lender considers alternative credit data, such as rent and utility payments, when reviewing mortgage applications.

Loan Types Offered

Flagstar Bank offers fixed and adjustable-rate conventional and jumbo mortgages (ARMs), FHA, VA and USDA loans. It also offers construction and renovation loans as well as specialty loans, which include loans for multiple properties and loans in high-cost areas. Home equity loans are available in limited areas. You can enter your ZIP code on the Flagstar website to find out if you qualify for a home equity loan.

Mortgage borrowers can count on average fees and competitive interest rates, tracking just below the national average. Borrowers can also get a preapproval letter within 24 to 48 hours and they can get prequalified online within 15 minutes.

The minimum credit score on VA and FHA loans is lower than average, requiring just a 600 FICO. This can be helpful for first-time borrowers who might not have an established credit history.

If you’re a VA borrower (or refinancing a VA mortgage), Guaranteed Rate waives all loan fees. For first-time borrowers or folks with less than perfect credit scores, minimum requirements are lower than average. For example, the minimum FICO requirement for a conforming mortgage and USDA loan is 620 and just 600 for FHA and VA mortgages.

Available in All 50 States

Guaranteed Rate is available online everywhere in the U.S. and has more than 300 branches nationwide.

How to Apply

Guaranteed Rate offers both branch locations and online access to borrowers who want to apply for a mortgage. Their paperless application process allows borrowers to send paperwork electronically as well as apply and keep track of the application process online.

Borrowers can apply online or in person at one of their locations. Customer support is available by phone Monday–Friday, 8:30 a.m.–7:30 p.m. CST and Saturday 9 a.m.-2 p.m. CST.

Speed

Preapproval times are not as fast as other lenders, with a one- to two-day turnaround on preapproval letters.

Credit Requirements

Guaranteed Rate minimum credit score requirements differ depending on the mortgage. The lender offers loan options for buyers with credit scores as low as 600. The minimum requirements for each program are:

• FHA: 600
• Conventional: 620
• VA: 600
• USDA: 620
• Jumbo: 700

Loan Types Offered

Guaranteed Rate offers both mortgages for buyers and refinancers. Its product line includes fixed and adjustable-rate mortgages (ARMs), conventional and jumbo mortgages, FHA, USDA and VA loans, as well as interest-only mortgages.

Guaranteed Rate doesn’t offer home equity loans or home equity lines of credit.

Established in 1935, PenFed is one of the country’s largest member-owned credit unions. PenFed has an open charter, which means no military affiliation is required.
To join, you must open and maintain a share (savings) account with at least $5. This isn’t a membership “fee,” it’s the member’s ownership share, and the requirement is the same for every member.

PenFed operates in all 50 states, Washington, D.C., Puerto Rico, Guam, and Japan.

Mortgage borrowers will not have to pay any lender fees; they’re just responsible for third-party fees such as appraisal, title, credit report and any other service required to process the mortgage.

Although PenFed historically averages 30 to 40 days for purchase closings, the lender says it will make an effort to close in a shorter time frame, if needed.

The Mortgage Member Benefits Program is a simple, three-tier lender credit for up to $2,500. The amount you save is based on your loan amount, so the bigger the loan, the more the savings.

Available in All 50 States

Although you can apply online, PenFed also offers branches in California, Florida, Georgia, Hawaii, Maryland, North Carolina, Nebraska, New Jersey, New Mexico, New York, Pennsylvania, Texas and Virginia.

How to Apply

Borrowers can begin their application process online. Customer support by phone is available Monday through Friday from 7 a.m. to 11 p.m. ET, Saturday from 8 a.m. to 11 p.m. ET and Sunday from 9 a.m. to 5:30 p.m. ET.

Speed

Loan preapproval takes less than three days. The average closing time is 35 days, which is shorter than the industry average. In some cases, closing can be as short as 11 days.

Credit Requirements

Borrowers must have a minimum credit score of 620 or higher for conventional and VA loans. For jumbo loans, the minimum credit score is 700.

Loan Types Offered

PenFed offers fixed conventional, jumbo and VA mortgage loans as well as home equity loans and refinancing.

PNC Bank operates in all 50 states and provides a wide range of mortgage products, including specialty loans for low- and moderate-income borrowers.

PNC also offers an innovative online experience called Home Insight, which provides a deep dive into the homebuying process, enabling customers to determine the mortgage payment they can afford and start shopping for homes with real-time rate quotes and loan products. It also allows customers who have applied for a loan to follow along with the approval process and upload supporting documents. In addition, the customer can invite real estate agents into the process to monitor progress.

Home Insight combines a home affordability analysis, a monthly payment estimator that accounts for insurance and taxes and the ability to search for available home listings. It also connects unique budgets, real-time rates and loan products with a real estate listings search to help prospective home buyers better understand how much house they can afford.

PNC also offers a full digital pre-approval application, where borrowers may apply online and receive approval in a matter of minutes.

Available in All 50 States

PNC has branches for borrowers more comfortable with a brick-and-mortar experience in the following states: Alabama, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.

How to Apply

Borrowers can apply online or in person at a bank location. Customer support by phone is available Monday through Thursday from 8 a.m. to 9 p.m. ET, Friday from 8 a.m. to 5 p.m. ET and Saturday from 9 a.m. to 2 p.m. ET.

Speed

Preapproval takes between 20 to 30 minutes. The average closing time is 45 days, which is about the industry average. In some cases, closing can be as short as 30 days.

Credit Requirements
Borrowers must have a minimum credit score of 620. For jumbo loans, the minimum credit score is 700.

Loan Types Offered

Quicken Loans is one of the largest mortgage lenders in the U.S.. Offering a completely online experience, with flexible customer service hours, borrowers can access customer service day and night.

Competitive mortgage rates are one of the top advantages Quicken Loans offers. Currently, Quicken’s average interest rates track above the national average.

Quicken Loans was ranked the best mortgage servicer by consumers in 2020, which makes it the seventh straight year it’s received this honor, according to J.D. Power’s annual consumer survey.

Available in All 50 States

Quicken Loans is an online lender, with four branch locations in Charlotte, Cleveland, Detroit and Phoenix.

How to Apply

Borrowers can apply online. Customer support hours, including for email, phone call and online chat, are Monday through Friday, 7 a.m. to midnight ET; and Saturday and Sunday, 9 a.m. to midnight ET.

Speed

Quicken Loans has three types of preapprovals: a prequalified approval (which is basically a prequalification); a verified approval (this is a traditional preapproval, where the lender verifies your income, assets and credit score) and a RateShield Approval2. The RateShield Approval2 goes a step beyond the preapproval and allows you to lock in your interest rate for 90 days.

The loan closing process is slower than average, taking about 47 days.

Credit Requirements

Quicken Loans requires a minimum credit score of 620. The lender considers alternative credit data, such as rent and utility payments, when reviewing mortgage applications.

Loan Types Offered

Quicken Loans’ product line includes fixed and adjustable-rate mortgages (ARMs), conventional and jumbo mortgages, FHA loans and VA loans. One of its unique offerings is YourGAGE, a fixed-rate mortgage that allows you to choose a custom term from eight to 29 years. Finally, its FHA Streamline product allows existing FHA borrowers to refinance into a lower rate with less paperwork and no appraisal required. The lender doesn’t offer USDA loans, home equity loans or HELOCs.

LoanDepot is one of the largest non-bank mortgage lenders in the U.S., with more than 150 branches across the country and a robust online presence. Its loan products include conventional mortgages, government-backed loans and refinances.

Customers who use the lender’s Mello Smartloan online technology can expect to reduce their closing time by 17 days by reducing paperwork and digitally connecting and verifying assets, income and debt. Additionally, Mello Smartloan can digitally conduct title clearance, which is often one of the more time-intensive steps of the underwriting process. Another benefit of this technology is that it also determines whether some borrowers can waive the appraisal requirement, which can shave time and a few hundred dollars off the cost of your mortgage.

Available in All 50 States

Borrowers can apply online or in the more than 150 branch locations in the U.S. LoanDepot currently has origination centers in Arizona, Tennessee and two in California and is currently licensed in 50 states.

How to Apply

LoanDepot customers can apply online for a mortgage. Once they submit their application, a loan officer will call them to go through the next steps, which include submitting income documentation and personal identification.

Customer service hours are fairly flexible on weekdays, from 8 a.m. to 10 p.m. ET Monday through Friday and Saturday from 11 a.m. to 3 p.m. ET.

Speed

LoanDepot’s mortgage preapproval time takes about 20 minutes for borrowers who are not required to supply additional information.

Borrowers who use their Mello Smartloan technology, which is said to cut down on the amount of paperwork applicants are required to submit and— in some cases—even eliminates the need for a home appraisal, can shorten the closing process by up to 17 days.

Credit Requirements

LoanDepot requires a minimum credit score of 620 for conventional and VA home loans, which is the average requirement for most lenders. For FHA mortgages, the credit requirement is less stringent, dipping to a 580 minimum. Finally, jumbo borrowers must have a minimum 700 credit score.

Loan Types Offered

LoanDepot offers fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, jumbo loans, VA loans and 203(k) loans. LoanDepot does not offer USDA loans.

Guild Mortgage offers both in-person and online mortgage services. With office locations in 31 states, borrowers who prefer to do business face-to-face can visit a branch location. Conversely, borrowers in 48 states (not in New York and New Jersey) can apply online through its MyMortgage digital mortgage program.

Guild Mortgage is a great option for borrowers with lower credit scores, as its minimum requirement is 600—about 20 points less than what the average lender requires. Applying for a home loan through Guild Mortgage is also relatively easy and fast, making it an excellent choice for people who can’t afford to wait.

Tech-forward, Guild Mortgage provides services like auto-matching customers with down-payment help from state and local programs, which is ideal for people who might not have time to do the research themselves.

For buyers in a hurry, the lender offers a Homebuyer Express 17-Day Closing Guarantee program. This is considerably faster than the industry average of 43 days to close, according to Freddie Mac. The guarantee states that the lender pays $500 toward closing costs if the loan doesn’t close on time due solely to a Guild Mortgage delay.

Available in Most States

Guild Mortgage is available online everywhere in the U.S. except in New York and New Jersey. There are branch locations in 31 states, including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin and Wyoming.

How to Apply

Guild Mortgage offers both branch locations and online access to borrowers who want to apply for a mortgage. Their paperless application process allows borrowers to send paperwork electronically as well as apply and keep track of the application process online.

Phone support is very limited, operating only Monday through Friday from 6:00 a.m. to 5:00 p.m. PT; the lender is closed on weekends.

Speed

Preapproval times are not as fast as other lenders, with a 1- to 3-day turnaround on preapproval letters. However, Guild Mortgage offers a 17-day closing guarantee, which can be attractive for borrowers who need to close quickly.

Credit Requirements

Guild Mortgage minimum credit score requirements differ depending on the mortgage. The lender offers loan options for buyers with credit scores as low as 600. The minimum requirements for each program are:

• Down payment assistance: 620 (depending on program in each state)
• FHA: 600
• Conventional: 620
• VA: 600
• USDA: 600
• Jumbo: 680

Loan Types Offered

Guild Mortgage Loans offers both mortgages for buyers and refinancers. Its product line includes fixed and adjustable-rate (ARMs) conventional and jumbo mortgages, FHA, USDA and VA loans. The lender’s MH Advantage program is tailored to borrowers who are purchasing a manufactured home. Per Fannie Mae guidelines, MH Advantage borrowers must have a minimum credit score of 620. Guild Mortgage also offers FHA renovation loans and reverse mortgages.

For new construction, the lender offers its StrongStart Program. StrongStart allows for a builder’s closing-cost credit to be used toward the interest on the first three months of a borrower’s monthly mortgage payments. This program is offered with FHA and VA financing (standard and high balance limits).

Guild Mortgage doesn’t offer home equity loans or home equity lines of credit.

Navy Federal offers low mortgage rates and lender fees, as well as a wide variety of options for borrowers with low or no down payments. The lender also offers online convenience, which gives borrowers the option to apply and get preapproved through its website.

Navy Federal’s mortgage match program promises to offer the lowest rates, but if a borrower gets a lower rate elsewhere, Navy Federal will match it or give you $1,000 toward your loan.

Available in Most States

Navy Federal Credit Union mortgages are available in 33 states and Washington D.C., including Arizona, Alabama, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin.

How to Apply

Borrowers can apply online or in person. Customer service via phone is available 24 hours a day, seven days a week.
Speed
The closing time for a mortgage is about 30 days, which is about average or slightly above average in terms of closing speed. The preapproval process can take one to three days.

Credit Requirements

Navy Federal Credit Union requires a minimum credit score of 620. They do consider alternative credit data, such as rent and utility payments, when reviewing mortgage applications.

Loan Types Offered

Navy Federal Credit Union offers mortgages for both buyers and refinancers. The product line includes fixed and adjustable-rate (ARMs) conventional mortgages and VA loans. The lender also offers a large selection of specialty loans to meet the unique needs of its customers. These include the Military Choice loan, which is designed for members who have already exhausted their VA loan benefit; the Homebuyers Choice loan, which does not require a down payment; second-home financing for vacation homes; and no-PMI loans.