Best VA Refinance Lenders in 2025 According to Experts

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VA refinance lenders can reduce your rate and give you access to cash with low down payments and easy qualification.

Refinancing a loan can be a solid financial decision. In fact, the best VA refinance lenders can help you lower your mortgage interest rate or take out some much-needed cash. Benzinga has done the work to boil down the VA refinance process and recommends mortgage lenders to help you start weighing your options. That research has identified the best options from lenders that specialize in working with veterans as well as more general lenders.

VA refinance loans have several advantages, including low down payments and easy qualification. Knowing the ins and outs of these loans can help you select the best lender.

Quick Winners List

• Best Overall VA Refinance Lender: Veterans United Home Loans
• Best VA Refinance Lender for Bad Credit: Freedom Mortgage
• Best VA Refinance Lender for First-time Home Buyers: Rocket Mortgage
• Best VA Streamline Refinance Lender: USAA
• Best VA Cash Out Refinance Lender: Navy Federal Credit Union

Best Overall VA Refinance Lender: Veterans United Home Loans

Pros:

• First-time homebuyer programs available
• Possible to buy with $0 down
• Largest VA home loan lender
• Competitive refinance rates

Cons:

• No home equity loans
• No renovation loans
• Small number of branch locations

Veterans United Home Loans specializes in providing home loans to veterans. From 2016 to 2024, it was the largest VA purchase lender. Veterans United offers an affordable alternative to the average rates for general consumers. It is also licensed in all 50 states, allowing veterans to secure a reasonable rate regardless of location.

Veterans United has several programs for veterans, including cash-out refinancing, first-time homebuyer programs and $0 down options. Its 30-year VA cash-out refinance loan has a 6.625% interest rate and a 6.952% APR. The typical minimum credit score is 620, and the loan-to-value (LTV) is up to 100%.

Typical closing costs are 3% to 5%, with an additional VA funding fee of 2.15% to 3.3%. Depending on the home's value, these costs can lead to a high cash-to-close amount. However, the competitive rates make this an affordable option in the long run.

Best VA Refinance Lender for Bad Credit: Freedom Mortgage

Pros:

• Minimum credit score of 550 for VA home loans
• Qualify after a bankruptcy or foreclosure
• No mortgage insurance
• Low funding fees for first use

Cons:

• Requires a funding fee
• Rates not available online
• No home equity loans

Freedom Mortgage offers several options for veterans, including VA cash-out refinancing. According to the lender, the minimum credit score is often 550, meaning you can potentially refinance with bad credit. The lender has experience working with bad-credit borrowers, allowing you to qualify even after a financial hardship. This includes borrowers who have experienced bankruptcy or foreclosure.

Like most lenders, you can expect to pay closing costs, with fees between 2% and 6%. There is also a VA funding fee, though the fee can be as low as 1.25% if this is the first time you will use your VA loan entitlement. Freedom Mortgage doesn’t post its rates online, but the lender says this is because it personalizes each borrower's offers.

Best VA Refinance Lender for First-time Home Buyers: Rocket Mortgage

Pros:

• Simple, streamlined application process
• Extended support hours for new customers
• Several loan terms available
• Save up to $10,000 on closing costs

Cons:

• Rates can be high
• Pre-qualification may require a hard credit inquiry
• No USDA home loans

Best VA Streamline Refinance Lender: USAA

Pros:

• Competitive rates for VA IRRRL
• Refinance with no money out of pocket
• No origination fees
• Covers your title and funding fees

Cons:

• Monthly payment could increase in some cases
• Must apply for jumbo loan to cash out up to $500,000

USAA is a financial services organization that exclusively serves members and families of the armed forces. It charges no origination fees for VA IRRRLs. It also covers the title and VA funding fees, reducing the amount you must pay to close on a refinancing loan. Rates are competitive compared to other IRRRLs, potentially leading to a low monthly payment.

However, USAA doesn’t guarantee your monthly payments will be lower. It says your payment may be higher in some situations, such as when adding closing costs or points to the loan. While VA loans are often available to borrowers with lower credit scores, USAA doesn’t specify a minimum score on its website. There is also no option to apply online, so you must call if you are interested.

Best VA Cash Out Refinance Lender: Navy Federal Credit Union

Pros:

• Competitive rates
• Low origination fees
• Several loan types for refinancing
• Permits seller contributions to closing costs

Cons:

• No FHA, construction or renovation loans
• Requires membership

What is a VA Refinance?

A VA refinance means refinancing an existing Veterans Affairs (VA) loan to obtain a new loan with better terms. Typically, this means a loan with a lower rate or monthly payment. A VA cash-out refinance loan could mean applying for a new, larger loan to access your home equity. VA loans typically have competitive interest rates, and refinancing to a new VA loan may allow you to qualify for a lower rate.

In addition to low rates, VA loans have several benefits, such as putting as little as $0 down and a loan-to-value ratio of up to 100%. Borrowers can often qualify with poor credit, even after a foreclosure or bankruptcy. Another benefit is that private mortgage insurance (PMI) is often not required, even if the borrower doesn’t put 20% down.

How Does a VA Refinance Work?

A VA refinance replaces your existing VA loan with a new one. There are two main types of VA refinancing: VA interest rate reduction refinance loans (IRRRLs) and VA cash-out refinance loans. VA IRRRLs aim to reduce the borrower’s interest rate, while VA cash-out refinance loans allow the borrower to tap into their existing home equity.

VA refinance loans are government-backed loans available to veterans, service members and surviving spouses. Because they are government-backed, they often have similar benefits. For instance, the ability to put $0 down and avoid PMI generally applies regardless of the lender. These loans allow veterans to access affordable home loans and refinancing, even if they don’t have excellent credit.

How to Choose a VA Refinance Mortgage Lender

You may be eligible for a VA mortgage refinance lender if you are a veteran, service member or surviving spouse. As noted, VA loans have favorable rates and terms for eligible people. However, VA loans have these favorable terms regardless of the lender, so you must evaluate each lender to see if they align with your goals.

Start by checking that the lender is VA-approved and can offer VA loans and refinancing. Although this is basic, not all lenders can offer VA loans. Once you have found VA-approved lenders, compare rates and APRs from several lenders. You might only see a one- or two-tenths of a percent difference between lenders, which can greatly impact your monthly payments.

You should also ask lenders what percentage of their business is VA Loans, says Rebecca Richardson, AMP at One ΓEA⅃ Mortgage. “Although the VA loan is very much a common-sense loan, most loan officers don’t do them frequently enough to understand the nuances that, if missed, can cause big issues later on,” Richardson says. You want someone experienced who knows the ins and outs of the process.

Also, pay close attention to the fees and closing costs. Closing fees are always involved in a loan, even when refinancing. However, lenders often waive some or all of these costs for VA refinance loans. Avoiding these costs can reduce your cash to close, though they can also impact interest rates and APRs.

Next, review each lender's refinance options. As mentioned, the main types of VA refinancing are VA IRRRL and VA cash-out refinancing. VA IRRRL is best for lowering your interest rate, while VA cash-out refinancing lets you access a portion of your home’s equity. The lender you are considering should offer the loan type you need with competitive rates.

Richardson also recommends asking for a Certificate of Eligibility from the VA. “This is a helpful competency test because this should be one of the first things that happens (like pulling credit) because eligibility needs to be confirmed before the lender can even say if a VA loan is an option,” she says. Richardson adds that if the VA indicates the certificate was pulled during processing or underwriting or the lender doesn’t know when it was pulled, it’s a red flag.

Reviewing these details will help you find the best VA refinance mortgage lender. Remember, each lender has pros and cons. Carefully considering each lender’s benefits and determining which one most closely aligns with your goals will help you make the best choice.

Why You Should Trust Us

Finding a VA refinance loan that matches your goals and a lender who will act in your best interest is crucial. As a personal finance writer with over six years of experience, I’ve spent countless hours researching the best financial products available. This has helped me become intimately familiar with the details of various products. While they all have advantages and disadvantages, the information presented here can help you become more knowledgeable as you search for the best product to meet your needs.

Methodology

Choosing a VA refinancing lender can be stressful, so Benzinga is here to help. Over 25 million readers trust us for advice and news on investing, cryptocurrency, insurance and VA mortgages.

To properly evaluate lenders, our methodology focuses on what matters most to homebuyers: rates, fees, loan options, customer service, credit score requirements and the application process. 

We’ve evaluated the best mortgage lenders for HELOCs, options for bad credit, self-employed borrowers and many others. Below are the details of our scoring framework.

Category Breakdown

• Rates and Fees: 25 points
• Loan Options: 20 points
• Customer Service: 20 points
• Application Process: 20 points
• Credit Scores: 15 points

Courtesy of Benzinga

Rates and Fees: 25 points

Rates and fees might be the biggest consideration when evaluating a VA refinance mortgage lender since they directly affect the borrower’s monthly cost. This is why we weigh them the heaviest of all categories. This section evaluates the competitiveness of each lender’s rates and how transparent their fees are.

We also consider discount points, penalty fees and fee caps in this category.

• Competitive Rates: 10 points
• Transparent Fee Structure: 10 points
• Discount points, penalty fees and fee caps: 5 points 

Loan Options: 20 points

Benzinga analyzes the specific types of loans the provider offers to evaluate a VA refinance mortgage lender. This includes conventional loans, FHA loans, VA loans, jumbo loans and specialized loans (non-conventional loans). 

Another plus in this category is a lender offering better term flexibility, refinancing options, first-time homebuyer programs or adjustable-rate mortgages (ARMs).

If a lender has all the basic loan types plus various non-conventional options, they will score at the top end in this category.

• Purchase and refinance: 5 points
• Fixed and adjustable: 5 points
• USDA, VA or FHA loans: 5 points
• Home equity loan or home equity line of credit: 5 points

Customer Service: 20 points

Customer service is an essential part of the overall borrower experience. This category assesses customer support’s helpfulness, availability and support time. We consider support hours, contact methods and multi-language support. 

• Customer Support Helpfulness (reviews, responsiveness, language options): 10 points
• Customer Support Availability (hours, channels): 5 points
• Response time (under 24 hours): 5 points

Application Process: 20 points

Borrowers applying for a VA refinance loan look for an easy and convenient application process. This category considers factors like online application availability, mobile app functionality, the ease of the process and the speed of closing. VA refinance lenders offering guidance before, during and after the process score well in this category. This might include live chat options and educational materials about VA refinance loans.

• Closing Time (within 30 days or less): 10 points
• Online Application: 5 points
• Ease of Use: 5 points

Credit Scores: 15 points

VA mortgages typically permit credit scores of around 580, which is lower than conventional mortgages and other types. However, some VA refinance mortgage lenders allow lower credit scores than others. Those accepting lower credit scores fare well in this category.

• Borrowing options for different credit scores: 15 points

Frequently Asked Questions

Sources

1. Veterans United Home Loans | Veterans United

2. VA Loan Rates Today | Veterans United

3. Find a Branch Near You | Veterans United

4. VA Cash-Out Refinance | Veterans United

5. VA Loans for Bad Credit Scores | Freedom Mortgage

6. VA Cash Out Refinances | Freedom Mortgage

7. What Is a VA Funding Fee? | Freedom Mortgage

8. Talk to Us | Rocket Mortgage

9. Home | Rocket Mortgage

10. VA Refinancing & VA IRRRL Rates | USAA

11. Refinance Mortgage Loan | USAA

12. Current Mortgage Refinancing Rates | Navy Federal Credit Union

13. VA Loans: Apply for a VA Home Loan Today | Navy Federal Credit Union