Comparing VA Loans and Conventional Loans: Key Differences
Top Lenders for VA and Conventional Loans: A Comprehensive Guide
In the competitive world of home loans, finding the right lender can make a significant difference. NerdWallet, a trusted source for financial advice, provides picks for the best VA loan and conventional loan lenders. Here's a breakdown of the top lenders in both categories, along with their key benefits.
VA Loans
The best VA loan lenders in the United States are Veterans United Home Loans, Rate, First Federal Bank, Alliant, NBKC, Navy Federal, Well Fargo, Flagstar, PenFed, USAA, and Navy Federal Credit Union. Veterans United, noted for its VA specialization and excellent customer service, stands out due to its focus on military members and their families.
Other top VA loan lenders include Rate and First Federal Bank, which offer a variety of VA loan types, including renovation and energy-efficient mortgages.
Conventional Loans
For conventional loans, top lenders include Chase, Veterans United Home Loans, Bank of America, Navy Federal Credit Union, PenFed Credit Union, PNC Bank, U.S. Bank, Wells Fargo, and Sage Home Loans. Chase and Veterans United stand out for their competitive credit requirements (around 620 minimum credit score) and low down payment options (as low as 3% for conventional loans).
Key Highlights
| Loan Type | Top Lenders | Key Benefits | |------------------|-------------------------------------------|--------------------------------------| | VA Loans | Veterans United, Rate, First Federal Bank, Alliant, NBKC, Navy Federal | VA specialization, low rates, loan variety (including renovation and refinancing options) | | Conventional Loans| Chase, Veterans United, Bank of America, Navy Federal, PenFed, PNC, U.S. Bank, Wells Fargo, Sage Home Loans | Competitive credit requirements, low down payments, national availability |
Making the Right Choice
Choosing between lenders often depends on your specific needs such as interest rates, loan variety, fees, and whether you prefer a specialized VA lender or a broad conventional loan provider. For military members, Veterans United is particularly reputable.
Important Considerations
- VA loans do not require a minimum down payment in most instances, while conventional loans usually require at least 3%.
- VA loans are backed by the U.S. Department of Veterans Affairs and are only for veterans, current military members, and some surviving spouses.
- Lenders may require a minimum credit score of 580-620 for VA loans, and a 620 FICO score for conventional loans.
- VA loans do not have mortgage insurance, but have a one-time VA funding fee of 1.25% to 3.3% of loan amount for purchase mortgages.
- Conventional loans typically require private mortgage insurance if the down payment is less than 20%.
- Lenders will give more scrutiny if the debt-to-income ratio is over 41% for VA loans, while ideally it should be under 36% for conventional loans.
- Conventional loans are not backed by the federal government and are for anyone who can meet a lender's financial requirements.
Comparing quotes from various lenders for both VA and conventional loans can help you see your best rate offers. Using a VA loan calculator can also help you compare the costs of a VA loan versus a conventional mortgage.
[1] NerdWallet, "Best VA Loan Lenders of 2025", August 2025. [2] NerdWallet, "Best Conventional Loan Lenders of 2025", August 2025. [3] NerdWallet, "VA Loan vs. Conventional Loan", August 2025.
- To aid in your personal-finance decisions, consider utilizing the various loan options provided by top lenders such as Veterans United, Rate, and First Federal Bank for VA loans, or Chase, Veterans United, and Bank of America for conventional loans, as highlighted in NerdWallet's comprehensive guide.
- For military members looking for a VA loan, Veterans United Home Loans, recognized for its VA specialization and excellent customer service, could be an ideal choice due to its focus on military members and their families.
- In the search for a conventional loan, lenders like Chase and Veterans United stand out due to their competitive credit requirements and low down payment options, as indicated in the guide.
- Personal-finance management can benefit from the use of a loan calculator, such as a VA loan calculator, to compare the costs of a VA loan versus a conventional mortgage, as suggested in NerdWallet's resources.
- When it comes to selecting a lender for your home loan, it's crucial to consider factors like interest rates, loan variety, fees, and whether you prefer a specialized VA lender or a broad conventional loan provider, as discussed in the key highlights section.
- Investing in your personal-finance education can help you make informed decisions about taking out loans. For example, learning about the differences between VA and conventional loans, including their requirements and benefits, can help guide your choices, as explained in NerdWallet's articles.
