Reviewed by Jeff Shin, NMLS #1041652. Updated .

What a VA lender does, and what the VA does

The Department of Veterans Affairs backs the loan. A private lender, such as a bank, mortgage company, or credit union, makes it. The VA says your lender determines your interest rate, discount points, and other closing costs. You have to meet the VA’s standards and your lender’s standards for credit, income, and anything else the lender requires. That second set of standards is where lenders differ.

What stays the same at every VA lender

  • The VA funding fee. The VA sets it as a percentage of the loan amount, based on the type of loan and, for some loans, your down payment and whether you’ve used the benefit before. It doesn’t depend on which lender you choose. Veterans who receive VA compensation for a service-connected disability don’t pay it, and the VA lists a few other exemptions. See VA funding fee.
  • No down payment requirement from the VA when the price isn’t higher than the appraised value, for borrowers with full entitlement.
  • No private mortgage insurance.
  • Seller credits. The VA lets sellers or builders cover some or all of your closing costs, and limits seller concessions to 4% of the home’s reasonable value.
  • Eligibility. You need a Certificate of Eligibility, whichever lender you use.

What changes from one VA lender to another

  • Rate and points. Two lenders can quote different rates on the same day for the same borrower. Compare them at the same number of points.
  • Lender fees. Origination and other lender charges show up in Section A of the Loan Estimate. Those are the fees that differ most. More on VA allowable fees.
  • Credit and income requirements. Lenders can set a minimum credit score, cap the debt-to-income ratio, or decline to underwrite a file by hand, even though the VA doesn’t set a minimum score. See VA residual income and VA loans with weaker credit.
  • What they’ll close. Not every lender handles every VA loan: condos, manufactured homes, new construction, cash-out refinances, or the VA IRRRL.
  • Lock terms. How long the rate is locked, and what an extension costs if closing slips.

How to compare VA loan offers

  1. Ask two or three lenders for a Loan Estimate on the same day, for the same price, loan amount, and lock period.
  2. Line up the rate and the points first, then the total in Section A (origination charges).
  3. Check that the VA funding fee matches. If it doesn’t, one estimate has a different loan amount or assumption.
  4. Compare the APR and the cash to close, not the rate alone.

Shopping in a short window doesn’t stack up credit inquiries. According to the CFPB, multiple credit checks from mortgage lenders within a 45-day window are recorded as a single inquiry. Already holding an estimate? Check your Loan Estimate before you decide.

Getting pre-approved for a VA loan

A VA pre-approval starts with your Certificate of Eligibility, recent pay stubs, W-2s, and bank statements. The lender then pulls credit and checks both your debt-to-income ratio and your VA residual income. Get pre-approved before you tour, because sellers weigh the letter with the offer. More in mortgage pre-approval and VA pre-approval and rate lock checks.

Questions to ask a VA lender

  • What’s the lowest credit score you accept for a VA loan, and do you ever underwrite by hand?
  • Can you show me the same loan priced with and without points?
  • What’s in Section A of my Loan Estimate, and which of those fees can change?
  • How long is the rate lock, and what does an extension cost?
  • Do you close the property type I’m buying, and will you handle a VA IRRRL later?

Where BankPricer fits

Jeff Shin is a mortgage loan originator. Barrett Financial Group, L.L.C. (NMLS #181106) is the broker, and it can price one VA file across several wholesale lenders. That matters most when a file sits near one lender’s credit or debt-to-income limit. You can also start with a review of your numbers, with no credit pull. The full VA program is covered on VA home loans.

Questions borrowers ask

Do all VA lenders charge the same funding fee?

Yes. The VA sets the funding fee as a percentage of the loan amount, based on the type of loan and, for some loans, your down payment and whether you have used the benefit before. It does not depend on the lender. Veterans who receive VA compensation for a service-connected disability do not pay it, and the VA lists a few other exemptions.

Can a VA lender require a higher credit score than the VA?

Yes. The VA says you must meet both its standards and your lender's standards for credit, income, and other requirements. The VA does not set a minimum credit score, but many lenders do.

How many VA lenders should I compare?

Two or three is usually enough. Ask for Loan Estimates on the same day for the same loan amount and lock period, then compare the rate, the points, and the lender fees in Section A.

Does shopping VA lenders hurt my credit?

Very little, if you keep it within 45 days. According to the CFPB, multiple credit checks from mortgage lenders within a 45-day window are recorded as a single inquiry, so comparing lenders affects your score about as much as applying with one.

Can the seller pay my closing costs on a VA loan?

Yes. The VA lets sellers or builders cover some or all of a buyer's closing costs, and it limits seller concessions to 4% of the home's reasonable value.

Sources

Program rules on this page are summarized from the agencies that set them. Lenders can add stricter requirements. Checked October 8, 2026.

Related

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