What's the Best VA Mortgage Lender Who Doesn't Sell Their Loans?

When considering a VA mortgage, one of the most important factors is the lender you choose. Not all lenders are created equal, and many sell their loans to other institutions, which can affect the quality of the loan and your terms. This article explores the benefits of finding a VA mortgage lender who retains their loans, and highlights some top lenders in this category.

Why Worry About Your Loan Being Resold?

Almost every lender resells a portion of their loans. This practice, known as securitization, allows them to free up capital to fund new loans quickly. The process can sometimes lead to a poor deal for borrowers at the expense of higher profits for the lender.

However, a few larger lenders choose to keep the most profitable loans, which often means these loans are of lower quality for the borrower. In many cases, these loans include multimillion dollar loans where the borrower receives less favorable terms. This is a significant concern, as it means the borrower might not be getting the best deal possible.

Why Do Non-Selling Lenders Matter?

Choosing a VA mortgage lender who doesn't sell their loans is crucial because it means the lender is more likely to offer terms that are favorable to the borrower. When a lender retains their loans, they have more incentive to ensure the borrower has a good experience and enjoys low interest rates and flexible terms. This results in better long-term financial stability for the borrower.

Consequences of Selling Loans

When a lender sells loans, they don't necessarily have to maintain the terms or service levels they initially offered. This can lead to several negative outcomes for borrowers, including:

Higher interest rates or fees Less favorable terms Poor customer service after the sale

By avoiding resold loans, borrowers can ensure that they don't fall victim to these risks and enjoy a more secure financial future.

Key Benefits of Non-Selling Lenders

Non-selling lenders provide several key benefits that make them a preferred choice for VA mortgage borrowers:

Consistent terms: Your loan terms will remain the same, with just a slight change in the mailing address for payments. No surprises: You won't be hit with unexpected changes to your loan conditions. Quality service: Lenders with retained loans are more likely to provide excellent customer service throughout the process.

Top VA Mortgage Lenders Who Don't Sell Their Loans

There are several reputable VA mortgage lenders that do not sell their loans or only sell a very small portion. Here are some of the best options:

Wells Fargo: Known for competitive rates and excellent customer service, Wells Fargo retains the vast majority of its loans in house. VA Home Loan: This lender offers a range of VA mortgages and keeps most of its loans on its books, ensuring consistent terms for borrowers. Zillow Home Loans: Zillow prioritizes retained loans, offering competitive rates and top-notch service to VA borrowers. FirstService Mortgage: Formerly known as Quicken Loans, FirstService keeps its loans in its portfolio and provides excellent service to VA borrowers. HSH Inc.: A specialized lender with a strong focus on VA mortgages, HSH Inc. retains its loans to offer consistent terms and service.

Conclusion

When it comes to getting the best deal on a VA mortgage, it's essential to select a lender who doesn't sell their loans. This ensures that your terms remain consistent and that you enjoy the benefits of a long-term, stable financial relationship with your lender. Among the top VA mortgage lenders who keep their loans, Wells Fargo, VA Home Loan, Zillow Home Loans, FirstService Mortgage, and HSH Inc. stand out as leaders in the field. By choosing one of these lenders, you can be confident in the stability and quality of your VA mortgage.