Veterans United Mortgage Overview
As evident in the name, Veterans United is focused on serving Americas military community. According to the Department of Veterans Affairs, Veterans Affairs, this non-bank mortgage lender originates the most VA home purchase loans of any lender. Founded in 2002 by two brothers, Veterans United is headquartered in Columbia, Missouri, originates loans in all 50 states and has branch offices in 21 states. The company has more than 2,000 employees and is privately held.
Veterans United specializes in VA home loans, but also offers conventional, FHA and USDA mortgages as well as several refinancing options.
How Does It Work
The VA Loan Program works to provide homeownership opportunities to people who otherwise wouldn’t qualify for conventional financing.
This program may give veterans the chance to purchase a home with no down payment, lower monthly payments, and with relaxed standards for first time buyers.
Those who believe they qualify can use their tools and resources to determine whether or not they may be eligible, what is involved with the VA loan home buying process, and what is required of first time buyers.
When you decide that you are ready to take formal steps forward in securing a potential loan, you can fill out their basic questionnaire and have one of their representatives contact you to discuss your options.
Pros And Cons Of Veterans United
- High customer ratings. Veterans United has high customer ratings, even on the BBB, where a majority of customers go to complain.
- Streamlined application. Its online application for preapproval takes just a few minutes.
- 24/7 customer service. VUs helpline is always open, with mortgage specialists available whenever best meets your schedule.
- No equity or specialty mortgage products. VUs mortgage offerings are more traditional, and the only way to access your homes equity is to refinance your loan.
- Little info on non-VA loans. It can be hard to find information on VUs non-VA mortgages on its website.
- Limited branch locations. This lender offers loans in all 50 states, but in-person service is limited to 17 states.
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About Veterans United Home Loans
Founded in 2002, and based in Columbia, Missouri, Veterans United Home Loans has grown to become one of the largest VA mortgage lenders in the country.
In fact, the company specializes in VA mortgages, making it one of the very best companies for veterans to obtain home loan financing with.
This is important because VA loans are perhaps the best mortgage program available. They enable veterans to purchase homes with 100% financing, meaning there is no down payment required.
VA Loans also come with no monthly private mortgage insurance requirement or PMI.
This is in contrast to conventional and FHA mortgages, both of which do require monthly mortgage insurance payments if your down payment is less than 20% of the homes purchase price.
The company has an A- rating with the Better Business Bureau . The company has been accredited with BBB since 2004, and has just 25 negative reviews to nearly 1,400 positive reviews.
And in late 2017, the JD Power Survey of 25 mortgage lenders gave Veterans United Home Loans an Overall Satisfaction Index rating of 889 based on a 1,000 point scale, the highest of all companies on the survey.
Refinancing With Veterans United
Refinancing is a popular way to lower your monthly mortgage payments, own your home sooner, leverage your home value, or take advantage of a new low rate.
Homeowners who are looking for mortgage refinance options can choose between a VA Streamline Refinance or cash-out refinancing.
- VA Streamline Refinance: Also known by its formal title, Interest Rate Reduction Refinance Loan , this refi loan allows borrowers to exchange their existing mortgage with a new one that offers loan terms that are more favorable. Unlike a traditional rate-and-term refinance, an IRRRL requires less paperwork and often closes sooner
- VA cash-out refinance: A VA cash-out refi allows homeowners with a VA loan or conventional loan to access their equity by replacing a current mortgage with a new, larger loan amount, and then receiving the difference as a lump sum of cash
The lenders refinance rates are generally similar to its purchase loan rates. But youll need to request a quote to find out your specific refi rate.
Lastly, borrowers who want to tap their equity without refinancing will have to go elsewhere. Veterans United does not offer a home equity loan or a home equity line of credit .
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Bottom Line: Veterans United Home Loans Review
Veterans United Home Loans is a lender built for veterans, from its affordable lending options to the former enlisted military members hired on staff.
If youre in the market for a VA mortgage or refinance, Veterans United has everything you need to move forward on your next home loan.
Jordan Blansit is a Senior Writer, Researcher, & Product Analyst for SimpleMoneyLyfe with an inexplicable predilection for mortgages, investing, and personal finance. When shes not click-clacketing from the comfort of her living room, you can find her in the California Redwoods or Oregon Siskiyous. Jordans areas of expertise are mortgages, personal loans, credit cards, and investing.
Veterans United Home Loans: Mortgage Transparency
Veterans United provides a wealth of information on its website regarding the loan process. This information covers topics on the eligibility requirements and benefits of a VA loan, types of mortgage loans, as well as articles detailing what to expect through the loan process and closing costs. There are also articles that dive into topics such as how to prepare for homeownership and the basics of home loans, , and underwriting.
Borrowers can choose to begin the loan process online, in-person at one of their branches, or apply over the phone. The lender provides online rate quotes without the need to check your credit, although you will have to provide your phone number and email address.
Veterans United seems to focus heavily on VA loans, and although the website was easy to navigate, it was difficult to find information on their other loan offerings for conventional, jumbo, FHA, or USDA products.
Compared to other lenders weve reviewed, the company had one of the lowest complaint ratios logged with the Consumer Financial Protection Bureau : The number of consumer complaints per 1,000 loans originated. The CFPB is the agency responsible for collecting, monitoring, and responding to U.S. consumer complaints about financial services and products.
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Veterans United Application Process
People who apply for a mortgage with Veterans United usually begin by using the Internet or by calling the company directly. Through the My Veterans United portal, you will be able to submit your loan application and become prequalified for a loan.
You can follow the following steps during the application process:
Veterans United Home Loan Review
Veterans United specializes in mortgage purchase and mortgage refinancing loans for military service members and veterans.
Edited byChris JenningsUpdated February 3, 2022
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Veterans United has financed home purchases and refinances for hundreds of thousands of active duty military and veterans.
Although you dont need a military connection to borrow from Veterans United, the companys focus is on VA loans.
In fact, you wont even find information about Veterans Uniteds non-VA products on its website but we reached out to them personally so that we could offer more info for you in this review.
Heres what else you should know about getting a Veterans United mortgage:
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Veterans United Home Loans Review: Types And Rates
Veterans United offers a wide selection of loan products to service members, veterans, and active reservists. Potential customers can locate up-to-date rate information quickly, contact customer service by phone any time of the day or night, and complete an online application.
Veterans United offers a variety of powerful mortgage loan options for Veterans with qualifying VA loan benefits, as mentioned below:
Who Veterans United Is Best For
Veterans United is a top rated mortgage lender, yet not everyone is eligible to use this provider. Because Veterans United only offers VA home loan products, individuals need applicable military service to qualify.
According to Veterans United, eligibility for a VA home loan hinges on individuals meeting one of the following requirements:
- 90 consecutive days of active service during wartime
- 181 days of active service during peacetime
- Six years of service in the National Guard or Reserves
- You are the spouse of a service member who died in the line of duty or due to a service-related disability
While eligibility for a VA home loan may seem cut and dry, there are certainly situations where individuals may not know if they are eligible. With that in mind, Veterans United boasts a tool on their website that can help military members determine if their service is sufficient to qualify.
But, why would you want a VA home loan in the first place? There are an array of important benefits, all of which can make getting into a new or existing home considerably easier and more affordable.
VA home loans come with:
- No down payment required
- No prepayment penalties
- Foreclosure avoidance
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About Ryan Guina
Ryan Guina is The Military Wallet’s founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Illinois Air National Guard.
Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about personal finance and investing at Cash Money Life.
Ryan uses Personal Capital to track and manage his finances. Personal Capital is a free software program that allows him to track his net worth, balance his investment portfolio, track his income and expenses, and much more. You can open a free Personal Capital account here.
Featured In: Ryan’s writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine , Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.
Other Mortgage Loans At Veterans United
If youre not eligible for a VA purchase loan or have needs they cant satisfy, Veterans United offers other products:
- USDA loans: The only other mortgage that requires no down payment, but youll have to pay mortgage insurance throughout the time you have the loan. There are also income caps on who can qualify, and youll need to buy a home located in an eligible rural area
- FHA loans: Veterans United FHA loans allow a down payment as low as 3.5%, and require a credit score of 580 or above. They also come with a monthly mortgage insurance premium
- Conventional loans: Down payments start at 3%, but you have to put at least 20% down to avoid paying private mortgage insurance . Conventional loans from Veterans United have a credit threshold of 620
- VA Jumbo loans: If you dont have full entitlement on your Certificate of Eligibility , you may need a VA jumbo loan to borrow above local loan limits
- Fixed-rate mortgages : Most borrowers opt for a 30-year mortgage with a fixed rate, though fixed-rate loan terms are available. These types of loans offer predictable monthly payments
- Adjustable-rate mortgages : Offers a lower rate, which is fixed for an initial period and a floating rate for the rest of the loan term. Borrowers have choose between a hybrid 5/1 and VA adjustable-rate loan
Because it originates so few non-VA loans, its difficult to say how competitive Veterans United is for these loan types. Youll want to get a custom rate quote to find out for yourself.
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Is Veterans United A Good Choice For Va Loans
Veterans United has been the leading VA lender by volume for the past five years. They offer a range of VA loans, including purchase, refinance, and jumbo.
They also pay several former enlisted military members to walk homebuyers through the complexities of the mortgage process.
In other words, if military lending experience is top of your list, its hard to go wrong with Veterans United.
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Whats The Process For Getting A Mortgage With Veterans United
The first step is to prequalify. You can start the process online, but youll need to talk to a representative to complete the process. Veterans United promises the process is quick once you speak with a mortgage representative on the phone. When SmartAsset called the main phone number , a knowledgeable representative was reached within five minutes, with minimal hold time.
Your loan officer will need your desired loan amount, current and previous employment, gross monthly income, assets , your monthly liabilities such as car loans, daycare costs, alimony or child support, information about any previous bankruptcies, foreclosures, debt defaults or delinquencies. Theyll also ask for your Social Security number for a credit check.
If your finances check out, you can move on to preapproval. This is a more detailed process than prequalification. Youll verify all the information you provided in the prequalification with documents as evidence. Be prepared to provide a government issued ID, DD 214 for veterans, pay stubs, two years worth of W-2s, federal tax returns, recent bank statements, VA disability percentage if applicable, retirement account statements and any documents requested by your loan officer.
What To Know About Va Home Loans
VA home loans come with plenty of benefits for military members and veterans, but there are some nuances with these loans borrowers should take the time to understand. Here are some important facts about VA home loans and how they work:
- VA home loans do not require specific loan limits. Unlike some other types of home loans that are backed by the federal government, such as FHA loans, VA home loans do not have specific loan limits. Borrowers can use a VA home loan for a home purchase at any price point provided the lender approves them based on their income and other factors.
- VA funding fees take the place of PMI. While VA home loans do not require private mortgage insurance , borrowers are required to pay a funding fee instead. For veterans using a VA loan for a first home purchase, the average one-time funding fee works out to 2.3% of the purchase price. For subsequent VA home loans, the average funding fee goes up to 3.6%.
- Military members and veterans can use their VA loan benefit more than once. The VA guaranty is a lifetime benefit, so eligible veterans can have multiple VA home loans over their lifetime.
- In some cases, mortgage lenders require a down payment for VA home loans. While the VA does not require a down payment to qualify for a VA home loan, individual lenders can require a down payment from certain borrowers based on their credit score, their income, and other factors.
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Seeks Advice From Former Military Leaders
Veterans United partners with retired senior enlisted leaders and military officers from each branch of the military to raise awareness and educate veterans about VA loans and homeownership.
These paid employees each have at least 28 years of military service under their belt and are there to help military members enjoy the benefits theyre entitled to.
Working With Veterans United
Based in Columbus, Missouri, Veterans United has a limited branch network, which may be an issue if you prefer an in-person home buying process. However, its online services are slick and backed up by 24/7 telephone support.
If you wish, you can upload your documents securely and complete your VA mortgage application online. You can also:
- Get VA home loan preapproval online
- Complete a partial loan application, save it, and return later to finish it off
- Use mobile devices as well as home and office computers
- Securely upload your documents
- Monitor your mortgage applications progress through to closing
Meanwhile, Veterans Uniteds call centers are open 24 hours a day, seven days a week. So theres always an expert available to help you through a mortgage or technical issue.
Things may be less straightforward if you dislike online technology. With only 26 branches nationwide, many people wont live close to a Veterans United location.
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