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Veterans United Home Loans Review: A VA Loan Leader

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

If you're looking for a VA loan, Veterans United Home Loans is one stop you should make. Veterans United only makes VA loans, and it's one of the biggest VA loan lenders in the United States. It has the knowledge and experience to help VA-eligible borrowers take full advantage of their benefit.

Take a look at our Veterans United Home Loans review to see if this might be the best mortgage lender for your next home loan.

Best for: VA loans

Rating image, 4.0 out of 5 stars.
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
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Bottom Line

The fact that it is the largest VA home lender speaks volumes. But Veterans United also offers an array of terms and loan products, in addition to competitive rates.

Min. Credit Score

  • 620

Min. Down Payment Minium Down Payment 0%-3.5% FHA, VA, and USDA loans 3% conventional loans

  • 0%-3.5%

Key Features

  • Online approval process
  • No required downpayment
  • Low rates

Loan Types

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo

Fixed Rate Terms

  • 30y, 15y

Adjustable Rate Terms

  • None

Full Veterans United Home Loans review

This mortgage lender is a good fit for: Borrowers eligible for a VA loan. VA lending is what Veterans United does, with a massive toolbox of resources for eligible borrowers.

Pros

  • VA loan experts
  • Competitive mortgage interest rates
  • Online mortgage application
  • Customer advocates from every branch of the military

Cons

Top perks

Online approval process

Veterans United Home Loans has a user-friendly online approval process. Borrowers can request a quote for a VA purchase or refinancing mortgage quickly and easily on the company's website. The company's myVeteransUnited online portal allows buyers to check application status, review and submit documents, and more.

No down payment required

Unlike with most other mortgage products, VA borrowers aren't required to come up with a down payment. At Veterans United Home Loans, borrowers can even roll the VA funding fee into the loan (2.3% for most new borrowers with no down payment, or 3.6% for those who have obtained a VA loan previously). Also, there's a cap on lender fees (at 1% of the loan amount) that can be charged for a VA mortgage.

Mortgage with no PMI

VA mortgages don't require borrowers to pay private mortgage insurance (PMI) premiums, even with no down payment. Instead, you'll pay a modest upfront funding fee, as noted above.

Besides not having to pay ongoing mortgage insurance premiums, you can lower your funding fee to bring your costs down even further:

  • With a 5% down payment: Pay a 1.65% funding fee
  • With a 10% down payment: The fee is 1.4%
  • For an interest rate reduction refinance loan (IRRRL): The funding fee is 0.5%
  • Qualified disabled veterans, Purple Heart recipients, and surviving spouses pay no funding fee at all

Low VA loan rates

VA mortgages don't represent a large amount of risk to the lender because of their government guarantee. Therefore, VA mortgages typically have very competitive interest rates. When we checked, the mortgage rates at Veterans United Home Loans were lower than the national average.

Helpful resources

The Veterans United Home Loans website is a treasure chest of valuable information for those who qualify for a VA mortgage loan. There are extensive resources that spell out eligibility requirements and details of VA mortgages in easy-to-understand terms. The company employs advisors from each branch of the U.S. Armed Forces to help ensure its processes and products serve the target customer base as well as possible.

Branch network

Veterans United Home Loans has 25 physical branches across the United States. This is convenient for many buyers who want in-person guidance.

Customer service

Veterans United Home Loans gets extremely high marks for customer satisfaction. It is one of the only major lenders focused on providing service to veterans. Home loan specialists are available 24/7 by phone. The round-the-clock availability is designed to help facilitate the mortgage process for military personnel stationed overseas.

Credit counseling

Veterans United Home Loans requires a 620 minimum credit score for its VA loans, and provides credit counseling to help borrowers get their scores up to par. The company's Lighthouse Program has helped tens of thousands of people build up their credit and become homeowners.

What could be improved

Access to home equity loans or HELOCs

If you're looking to borrow money against the equity you have in your current home, Veterans United Home Loans can't help you. You would need to pursue a cash-out refinance instead.

Access to other loan types

Veterans United Home Loans says (on the phone) that it also offers the conventional loan, FHA loan, USDA loan, and non-VA jumbo loans. But those are offered through a lending partner called Paddio. It's not possible to get information about non-VA loans on the Veterans United Home Loans website or from Veterans United loan officers. After clicking through the "get a quote" tool, we got a message that said, "Since you indicated that you are not an active or former member of the U.S. Military, we have matched you with a lending partner." Paddio may be able to meet your needs if you are not eligible for a VA loan through Veterans United.

Alternatives to consider

If you think a VA mortgage might be right for you but want to keep your options open, check out a less-specialized lender like Citi Mortgage. Citi Mortgage offers non-VA programs designed to make homeownership affordable. For example, its Citi HomeRun loan program has a 3% down payment requirement and no PMI.

Another lender to consider is Better.com. Better Mortgage is a tech-focused lending platform that allows the borrower to complete the mortgage process quickly and efficiently, 100% online. Better has some unique programs, such as a 3% down payment option for first-time buyers. Also, unlike any VA lender, Better Mortgage charges no lender fees whatsoever.

Lender
CitiMortgage
Rating
Rating image, 4.5 out of 5 stars.
4.5 stars
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.5 out of 5 stars.
4.5 stars
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Min. Down Payment
  • 3%
  • 3%
Credit Score
  • 580 - 620
Minium Credit Score 580 FHA 620 other mortgage products
  • 620
Key Features
  • No PMI mortgage
  • High customer satisfaction
  • Available in all 50 states
  • No origination fees
  • Instant loan estimates
  • 100% online application
  • $150 off closing costs for The Ascent readers
  • Better Cash offer
Next Steps

It's a good idea to get multiple lender quotes before you choose a mortgage lender. By filling out mortgage applications with a few lenders, you may find a lower-cost loan. A lower APR can save you thousands of dollars over the term of your mortgage. Keep in mind that each lender sets its own mortgage rates, even on government-backed mortgages like VA loans. And since there's a special provision in the FICO credit scoring methodology that allows you to shop around for the best mortgage rate during a 14 to 45 day window, you aren't penalized for multiple loan applications during a two-week shopping window.

How to qualify

Veterans United Home Loans has branch offices in 17 states. It also has a user-friendly online portal where you can get a rate quote or fill out a mortgage application. You can start the VA loan process on the website. Once you've applied, you're assigned tasks to complete through the myVeteransUnited portal. The online process gets excellent scores when it comes to customer satisfaction.

If you run into any snags, Veterans United Home Loans has 24/7 live help, which makes it a great choice for active-duty military personnel stationed overseas or for anyone who doesn't keep "banker's hours."

As mentioned, Veterans United Home Loans requires a 620 credit score for VA home loan applicants. The underwriter will also look at your debt-to-income ratio (DTI), or how much of your income goes to required debt payments every month. This figure includes the minimum payment on all of your loans and credit cards -- and your new housing payment, including taxes, insurance, and homeowners association fees. Your DTI should be below 41%. If it's higher, you might still qualify but your application will require more attention.

How are Veterans United's refinance rates?

Since Veterans United Home Loans specializes in VA loans, rates are very competitive. The 15-year VA Streamline Refinance and VA cash-out refinance loans are offered at slightly higher rates than the 15-year VA purchase loan. The 30-year refinance loans have a slightly higher rate than the 30-year purchase loan.

How are Veterans United's rates compared to the national average?

Veterans United's mortgage rates trend lower than the national average, and on par with other VA lenders. VA loan rates are usually low in general because with government backing, the lender is taking on less risk.

Total loan costs at Veterans United are very low. When we checked, the lowest available rate on a 30-year fixed-rate VA mortgage was available to borrowers who pay 1.25% in mortgage discount points. That is less expensive than the lowest rate from many other lenders.

Veterans United Home Loans is right for you if:

You're a VA home buyer. Veterans United Home Loans is a leader in VA mortgages. It's a lender with the experience and know-how to offer a good experience.

You want an online mortgage. Veterans United Home Loans provides an easy-to-use online process, backed up by 24/7 live customer service.

You're working to improve your credit. Take advantage of the free and highly-rated credit counseling service at Veterans United.

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