Top VA Lenders: Veterans United Leads the Pack, Plus What Else the Data Shows

Improving housing market conditions last year led to a resurgence in one of the more popular benefits available to the American armed forces — the VA loan.

According to data from the Department of Veterans Affairs, mortgage lenders originated 528,343 VA loan during the 2025 fiscal year, an increase of nearly 27% over 2024 overall. Home purchasing loans increased by 8.5%, while refinancing loans were up by a substantial 73%. The sharp increase across all loan types was spurred by the steady decline in mortgage rates during the last six months of the year.

Veterans United Home Loans was the top originator for the fourth consecutive year, underwriting more than 71,154 loans — more than double its nearest competitors. Freedom Mortgage Corporation is the next largest, originating 29,734 loans, followed by Rocket Mortgage with 29,647. The top 10 direct VA lenders of 2025 are as follows:

• Veterans United - 71,154 loans
• Freedom - 29,734 loans
• Rocket - 29,647 loans
• Navy Federal - 18,092 loans
• Pennymac - 14,736 loans
• Village Capital - 12,359 loans
• DHI Mortgage - 12,132 loans
• Newrez - 10,602 loans
• CrossCountry - 10,164 loans
• LoanDepot - 8,273 loans

Interest in VA loans (as well as in every other type of mortgage) spiked during the pandemic when rates were ultra-low. Once rates started rising in 2022, however, loan originations fell to just over 400,000 per year. Last year's jump in loan originations marks a step toward the more traditional levels seen before 2020.

Purchase loans accounted for more than half of all originations, as affordability improved in the last half of 2025. Between May and December, Freddie Mac's benchmark rate for a 30-year fixed-rate loan decreased from a high of 6.89% to 6.15%, significantly lowering borrowing costs. On a $400,000 home, for example, the rate difference was enough to lower the monthly payment by almost $200.

Other market conditions showed improvements as well. The number of homes for sale steadily increased, easing competition among prospective buyers and giving them more options. At the same time, rising inventory helped stabilize home prices. All these factors combined to provide the most affordable homebuying conditions seen within the last two years.

Homeowners were also able to take advantage of declining interest rates. The number of interest rate reduction refinance loans (IRRRL), the VA's streamlined refinancing loan program, jumped from 50,825 in 2024 to 119,457 — an increase of 135%.

The substantial increase in home prices during the pandemic years provided an additional incentive to refinance. According to data analysis firm Cotality, homeowners held about $11 trillion in tappable equity, meaning they could borrow against their home's value while still retaining a 20% ownership stake in the property.

VA borrowers took advantage of this equity, securing 85,050 cash-out refinance loans — a 26.5% year-over-year increase.

Loan originations by loan type

Each top VA lender has its own strengths. This table shows how many loans each lender generated, by loan category.

The Benefits of VA Loans

VA loans make homeownership more accessible and are considered one of the most important benefits for active-duty and retired service members and surviving spouses.

Because the federal government backs these mortgages, lenders' interest rates tend to be very competitive compared to those on conventional loans. Credit score requirements are very flexible, with most lenders accepting scores as low as 620. Borrowers also aren't required to pay for private mortgage insurance, which results in lower monthly payments.

Other advantages of the loan program include limits on how much a lender can charge in closing costs, which reduces fees. Sellers can help cover some or all of these costs and can also provide up to 4% of the home's value in other concessions, reducing the cash amount a VA buyer needs to pay even further.

Borrowers do have to pay a funding fee. This expense is a one-time fee that the VA uses to help reduce loan costs for future users of the VA loan program, and can be paid out of pocket or rolled into the loan. How much the borrower has to pay depends on the loan type, whether it's the first or a subsequent loan through the VA program, and the down payment.

The fee is calculated as a percentage of the total loan amount, according to the following schedule:

There are, however, situations where a borrower is exempt from paying the funding fee. These exemptions apply if the borrower:

• Is receiving compensation for a service-related disability;

• Is eligible to receive compensation for a service-related disability, but is instead receiving retirement benefits or active-duty pay;

• Is receiving Dependency and Indemnity Compensation as the surviving spouse of a veteran;

• Is a service member who received a proposed or memorandum rating, prior to the loan's closing date, establishing eligibility for compensation due to a pre-discharge claim;

• Is an active-duty member of the armed forces who, on or before the closing date, provides evidence of having received a Purple Heart.

Existing homeowners gain a significant advantage if they choose to refinance their existing mortgage through one of the VA's loan programs.

The IRRRL loan provides a streamlined application process, unique to all government-backed loans, that is faster and requires less documentation than a conventional refinance. According to VA guidelines, a home appraisal is not required, and there is no credit check. Closing costs are typically very low. The loan being refinanced, however, must be a VA loan.

The VA's cash-out refinance, on the other hand, can be used to convert a conventional loan into a VA loan. It allows the borrower to access up to 100% of their home equity — much higher than the 80% typically allowed on conventional loans.

Perhaps the most useful benefit of the loan program, however, is the entitlement, or the amount of the loan the VA will guarantee. Basic entitlement is $36,000, which is 25% of $144,000. However, in many cases, home prices are much higher, so there's a bonus entitlement that guarantees up to 25% of the total loan amount.

For example, a borrower wants to buy a $500,000 home. The VA will guarantee 25% of the purchase price, or $125,000. Of this amount, $36,000 is covered by the basic entitlement, and $89,000 by the bonus entitlement.

The amount of entitlement a borrower has determines whether they need to make a down payment. If they've already used a portion of their entitlement (for example, if they already own a home using a VA loan), they will likely need to make a cash down payment on the new property. Entitlement can be restored by paying off the previous loan.

Having full entitlement allows VA borrowers to purchase a home with a 0% down payment, even if they have a low credit score — a significant advantage for housing affordability. Check Money’s best VA Loan lenders for a breakdown of what is best for your situation.