Is Veterans United a Good Lender? Full Review
Many veterans and active military servicemen and women opt for a VA loan to finance their homes. One of the most popular lenders for VA loans is Veterans United. In this article, we will do a full Veterans United review to help with your decision making process.
Veterans United Home Loans is not a government agency and they are not affiliated in any way with the Veterans Administration. Veterans United is a mortgage lender that specializes in VA loans but also offers other types of mortgages.
The company is headquartered in Columbia, Missouri, has 28 offices all over the United States, and covers all 50 states. Veterans United Homes Loans focuses solely on VA loans, offering every mortgage under the VA program (VA purchase loans, VA streamline refinances, VA cash-out, and VA jumbo loans).
Veterans United is the country’s largest VA home loan lender, making them the most popular option for veterans, active-duty service members, and select military spouses. The company’s interest rates and fees are competitive and they are can help military applicants through the steps of the VA loan process. They also offer USDA, FHA, and conventional home loans.
Is Veterans United a good lender?
Our Veterans United review found they have helped many veterans to purchase their dream home. However, their rates may not be the lowest and it is always a good idea to shop around and get quotes from other lenders.
Veterans United’s Minimum Qualification Requirements
Borrowers should meet the basic requirements set by the Department of Veterans Affairs (VA) and have a valid Certificate of Eligibility (COE). If you want to qualify for a 0% down payment, the minimum credit score requirement at Veterans United is 620.
Veterans United will also check your employment status, household income, other obligations, debt-to-income ratio, and capacity to pay. Qualified borrowers will need a minimum of 2 year’s employment unless the veteran is disabled or was deployed during the past two years.
Read our full article on VA loan requirements and then receive a competitive VA mortgage rate quote.
Veterans United Credit Consulting
Veterans United offers free credit consulting for service members who have low credit scores through its Lighthouse Program. This Lighthouse Program will guide borrowers through the best path in building good credit so they can get qualified for a home loan.
Service members who will avail of this free service will work one-on-one with a Veterans United credit counselor. Veterans United will help them identify and correct errors on their credit report, strengthen their overall financial profile, and take steps that will help improve their mortgage credit scores.
This service focuses on the borrower’s mortgage credit score, which is different than the typical scores from credit monitoring services. Veterans United will help borrowers monitor their mortgage credit scores so they can get pre-qualified for a home loan.
Pros and Cons of Veterans United
Pros of Veterans United
Veterans United is one of the most popular lenders when it comes to VA loans. The majority of their customers are successful in obtaining a loan.
Here are the things that make Veterans United a good lender:
- With years of reliable experience and expertise in issuing VA loans
- Offers the Veterans United Lighthouse Program, which is a free service that provides tools to improve the potential home buyers’ financial profile
- Offers 24/7 customer service
- Borrowers can apply online
- Can provide prequalification
- Offers different types of VA loans
- Loans are available in all 50 states
- An affiliate partner of Veterans United Realty, which offers a nationwide network of Veteran-friendly real estate agents
Cons of Veterans United
While Veterans United is a popular choice for VA loans, Veterans United may not be the best choice for some borrowers.
Here are the drawbacks associated with Veterans United:
- Charges origination and other fees
- Rates are not the lowest when we reviewed
- Branches are limited
- Their terms may not be as competitive as other lenders
- Does not offer home equity financing
- Minimum credit score requirement of 620
Veterans United’s VA Loan Rates
VA loans are a type of government mortgage backed by the U.S. Department of Veterans Affairs (VA). They are offered to veterans, service members, and eligible military spouses. Because the government guarantees a portion of the loan, interest rates are relatively lower compared to traditional loans.
Interest rates are determined by the lenders based on the borrower’s financial circumstances. What looked at the published rates by Veterans United and compared to many other lenders who also published their rates online. We found Veterans United’s rates to be average and there were some lenders whose APR was up to a half point lower.
Like other lenders, Veterans Unites rates may vary depending on your unique financial conditions. Veterans United will consider a variety of factors in determining your loan rate, such as:
- Credit score. Even if this is a government-backed loan, a good credit score will give you the advantage of getting a lower interest rate. However, borrowers with low credit scores may still qualify for the loan because of the VA guaranty. Borrowers who are concerned with their credit may seek assistance from Veterans United as the company offers a no-obligation credit consulting service to help with pre-approval.
- Type of VA loan. VA loan rates vary depending on the types of VA loans: purchase, IRRRL, cash-out, or jumbo.
- Loan term. The length of the loan will also be considered. VA loan payment terms are either 15 or 30 years.
- Current market conditions. Interest rates may vary depending on the current market conditions.
Veterans United Reviews from Consumers
We read through a few hundred reviews on multiple sites. When doing a search, we first came across the review page that was on the Veterans United website. The reviews published on the Veterans United website were interesting. They use a 5 star rating system, they allow the consumer to post a comment, and they will often reply to the comment.
We scanned through thousands of reviews on their website and most of the reviews we saw at first were positive. However, we had to go through pages of reviews before they started to reveal some of the reviews that were rated three stars or less. The odd thing was virtually none of those negative reviews revealed the consumer comment or complaint. Meanwhile, in some instances Veterans United was replying to an obvious comment, but we just could not see it.
To be fair to any company that allows consumers to post their reviews or experiences, most people who have a positive experience do not go back to leave a comment or review. It is usually the situations where there was a bad experience which drives people to leave a review. This is why we actually found it odd that we were initially only seeing the 5 star ratings, but it is their website.
We visited some other sites that were offering a review and some of those really felt more like advertisements for Veterans United. That was until we went to the Better Business Bureau review. Keep in mind, Veterans United has thousands of transactions every month so odds are they all will not be perfect.
Veterans United Final Verdict
Veterans United Home Loans is a “popular” option for veterans, active service members, and eligible military spouses who are seeking to finance a primary home through a VA loan. They have higher credit score requirements than other VA lenders, but they do over their Lighthouse Program to help borrowers with bad or low credit to improve their mortgage scores so they can get pre-qualified.
The rates offered by Veterans United were average, not the best and there were many good reviews with some bad ones mixed in. What does this mean? To us, this means Veterans United is just like any other lender and consumers should shop around and include other lenders in their decision-making process. You should still include Veterans United when interviewing lenders and getting rate quotes.
If you would like a rate quote from another VA lender or if your credit scores are below 620 and maybe even as low as 500, then we can help to find a VA lender to suit your needs.
Veterans United Questions
Is Veterans United Legit?
Veterans United is a legitimate lenders specializing in VA loans.
Is Veterans United a Bank?
Veterans United is not a bank where you can open a savings or checking account. They are a non-bank lender like many others in the industry.
Does Veterans United Charge and Origination Fee?
Some lenders may charge an origination fee depending upon that particular loan scenario. However, there are various fees associated with VA loans and asking about origination fees is something you should do whenever you interview any lender.
Does Veterans United Cover Closing Costs?
Like most lenders Veterans United likely can cover your closing costs in exchange for a higher rate. If you are buying a home, the best option is to get the seller to cover the closing costs instead of the lender.
Does Veterans United do Conventional Loans?
Veterans United does offer conventional loans but their rates are not competitive since it is not their focus.
Related Veterans United Articles
VA Loans May Be the Best Loan Program On the Planet – Read about the various benefits of a VA loan and why it may be the best option for you.