Veterans United Remains the Top VA Loan Provider: Key Findings from 2025

The housing market showed signs of improvement last year, and more veterans took advantage of VA loans as a result. According to the Department of Veterans Affairs, lenders issued 528,343 VA loans during the 2025 fiscal year. That's almost 27% more than in 2024.

Home purchase loans grew by 8.5%, while refinancing loans jumped by an impressive 73%. This surge happened because mortgage interest rates dropped steadily during the last six months of the year.

Who Are the Biggest VA Lenders?

Veterans United Home Loans held onto its top spot for the fourth year in a row. The company processed more than 71,154 loans — more than double its closest competitors.

Here are the top 10 VA lenders for 2025:

1. Veterans United — 71,154 loans
2. Freedom Mortgage — 29,734 loans
3. Rocket Mortgage — 29,647 loans
4. Navy Federal — 18,092 loans
5. Pennymac — 14,736 loans
6. Village Capital — 12,359 loans
7. DHI Mortgage — 12,132 loans
8. Newrez — 10,602 loans
9. CrossCountry — 10,164 loans
10. LoanDepot — 8,273 loans

Why Did VA Loans Increase?

Several factors made 2025 a better year for homebuyers:

• Lower interest rates: Between May and December, the average rate for a 30-year mortgage fell from 6.89% to 6.15%. For someone buying a $400,000 home, this drop meant saving nearly $200 per month on their mortgage payment.

• More homes available: The number of homes for sale increased, giving buyers more choices and reducing competition.

• Stable home prices: With more inventory on the market, home prices leveled off, making buying more affordable.

These conditions created the best homebuying environment in two years.

Refinancing Surged in 2025

Homeowners also benefited from falling interest rates. The number of Interest Rate Reduction Refinance Loans (IRRRL) — a simplified refinancing program for VA loans — skyrocketed from 50,825 in 2024 to 119,457 in 2025. That's a 135% increase.

Additionally, many homeowners had built up significant equity in their homes due to rising property values during the pandemic. According to Cotality, a data analysis company, homeowners collectively held about $11 trillion in equity they could borrow against while still keeping a 20% stake in their property.

VA borrowers took advantage of this by securing 85,050 cash-out refinance loans — a 26.5% increase compared to the previous year.

What Makes VA Loans Special?

VA loans are one of the most valuable benefits available to active-duty service members, veterans, and surviving spouses. Here's why:

Lower Interest Rates

Because the federal government backs these loans, lenders typically offer lower interest rates than on regular mortgages.

Flexible Credit Requirements

Most lenders accept credit scores as low as 620, making it easier for borrowers to qualify.

No Private Mortgage Insurance

Unlike conventional loans, VA loans don't require borrowers to pay for private mortgage insurance (PMI), which lowers monthly payments.

Limited Closing Costs

The VA caps how much lenders can charge in closing costs. Sellers can also help cover these fees and offer up to 4% of the home's value in other benefits, reducing how much cash the buyer needs upfront.

Zero Down Payment Option

With full entitlement, VA borrowers can purchase a home without making any down payment — even with a lower credit score. This is a major advantage for affordability.

Understanding the VA Funding Fee

VA borrowers must pay a one-time funding fee, which helps keep the loan program running for future users. This fee can be paid upfront or added to the loan amount. The exact amount depends on:

• The type of loan
• Whether it's the borrower's first VA loan or a subsequent one
• The size of the down payment

However, some borrowers are exempt from this fee, including:

• Those receiving compensation for a service-related disability
• Surviving spouses receiving Dependency and Indemnity Compensation
• Service members with a proposed disability rating before closing
• Active-duty members who have received a Purple Heart

Refinancing Benefits for Homeowners

The VA offers two main refinancing options:

IRRRL (Interest Rate Reduction Refinance Loan)

This streamlined program makes refinancing faster and easier. It requires less paperwork, typically doesn't need a home appraisal or credit check, and has low closing costs. However, your current mortgage must already be a VA loan.

Cash-Out Refinance

This option lets you convert a regular mortgage into a VA loan and access up to 100% of your home's equity. That's much higher than the 80% limit on most conventional loans.

The Bottom Line

VA loans remain one of the best tools for helping military families achieve homeownership. With lower rates, flexible requirements, and unique benefits like zero down payment options, it's no surprise that loan originations bounced back strongly in 2025.

-

Need help with your down payment? Find resources and assistance here!