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Rocket Mortgage Review | VA Loans
By Jessica Walrack MONEY RESEARCH COLLECTIVE
Rocket Mortgage is the largest mortgage lender in America. In its early days, it set itself apart by introducing the very first fully online mortgage experience. As part of its comprehensive lineup of home loans, it offers VA loans for military service members, veterans, and surviving spouses. How do they stack up? Find out in this in-depth Rocket Mortgage VA Loan review. Plus, be sure to compare Rocket against the best VA loans of 2022!
Table of Contents
- Rocket Mortgage’s Services
- Rocket Mortgage’s Credentials
- Rocket Mortgage’s Accessibility
- Rocket Mortgage’s Customer Satisfaction
Rocket Mortgage VA Loans Overview
- Wide selection of VA loans
- Lenient eligibility requirements
- Convenient online mortgage experience
- High customer satisfaction ranking
- Financially stable
- No VA Renovation Loans or NADLs
- Customer complaints with the BBB
- No physical branches
Rocket Mortgage has roots dating back to 1985 when Dan Gilbert founded the mortgage brokerage, Rock Financial. Gilbert was committed to creating an online lending solution as early as 1998. In 1999, Rock Financial was bought by Intuit, Inc. and renamed Quicken Loans. However, Gilbert partnered with private investors and bought Quicken back in 2003. Twelve years later, they introduced Rocket Mortgage — the first end-to-end completely online mortgage experience. Today, Rocket offers a variety of loan products online, including VA loans, and has grown into the largest mortgage lender in the U.S.
What is a VA loan? In short, VA loans are government-backed home loans provided by private lenders to qualifying service members, veterans, and surviving spouses. They offer many unique benefits that make homeownership more affordable for borrowers. With Rocket Mortgage, you can choose from a variety of VA loans, while resting assured that the company is legitimate, financially stable, and committed to outstanding customer satisfaction. Read on to learn more about what Rocket offers, what it doesn’t, and if it may be the right VA lender for you.
Rocket Mortgage’s Services
Wondering if you should use Rocket Mortgage to get your VA loan? Here’s a closer look at which loan products are available.
What they offer
Rocket Mortgage offers a few different types of VA loans, including:
- VA Purchase Loans: VA purchase loans from Rocket can be used to buy a one-to-four family home, condo, or townhouse (no manufactured homes). The lender offers both adjustable and fixed-rate options with terms ranging from 15 to 30 years.
- Joint VA Loans: A joint VA loan is a VA purchase loan originated by more than one borrower (not including a spouse). While only one borrower needs to meet the military requirement, borrowers without military history will be required to make a down payment due to their lack of VA entitlement.
- VA Jumbo Loans: If you want to purchase a home that costs more than your local conforming loan limit, your VA lender may not allow it. But Rocket offers jumbo loans up to $2 million for this purpose.
- VA Cash Out Refinance Loans: Rocket also offers VA cash-out refinance loans that let qualifying homeowners access up to 100% of their available home equity.
- VA Streamline Refinance: VA Streamline Refinance loans help existing VA borrowers lower their interest rates, adjust their terms, or switch from adjustable to fixed interest rates. However, you can only do so if it will provide you with an immediate financial benefit.
What they don’t offer
Now that you know what you can get from Rocket, here are two types of VA loans you’ll have to find elsewhere.
VA Renovation Loans
Buying a fixer-upper? VA renovation loans, also called VA rehab loans, enable you to finance the purchase price of a home and the renovation costs together. However, you can’t currently get this VA loan type through Rocket.
VA Native American Direct Loans (NADL)
NADLs are VA loans designed for Veterans who are Native Americans or have spouses who are. You can use them to fund the purchase, building, or renovation of a home on federal trust land. Like regular VA purchase loans, they offer the perks like no down payment, no mortgage insurance, low interest rates, affordable monthly payments, and limited closing costs. However, if you want a NADL, you’ll need to contact your VA regional loan center as they aren’t offered through private lenders.
Requirements for a VA loan
Interested in one of the VA home loans Rocket does offer? You’ll need to meet the eligibility requirements set by both Rocket and the U.S. Department of Veterans Affairs (VA) to qualify. Here’s what to expect.
Rocket Mortgage eligibility requirements
Rocket requires borrowers to have:
- A 60% or lower debt-to-income (DTI) ratio.
- Two years of work history.
- Proof of a stable income.
- A credit score of at least 580, but preferably 620+.
- A qualifying property type (no manufactured homes).
VA eligibility requirements
The VA requires that borrowers must:
- Be a qualifying active duty service member, veteran, National Guard member, reserve member, or surviving spouse.
- Meet the minimum active-duty service requirements, or qualify for an exemption.
- Have a Certificate of Eligibility (COE) proving your entitlement.
- Have been discharged under honorable conditions.
- Buy a primary residence you’ll move into within 60 days.
- Pay the VA funding fee.
- Buy a property that meets the minimum requirements (no mold, termites, structural defects, lead-based paint, etc.).
While the VA’s requirements can be restrictive, the credit requirements set by Rocket are very lenient. Conventional mortgages typically have max DTI limits ranging from 45% to 50%. Rocket, however, may approve loans to people with up to a 60% DTI ratio.
Rocket Mortgage’s Credentials
Providing mortgage lending at scale requires a variety of licenses and registrations. Here’s a look at Rocket Mortgage’s credentials, along with how the company fares when it comes to industry awards, third-party ratings, and regulatory actions.
Licenses and registrations
Rocket Mortgage has state licenses and/or registrations in all 50 U.S. states. The particular license and or registration the lender holds in each state varies depending on that state’s requirements. For example, in Virginia, Rocket only has a Lender License. In California, it has both a Residential Mortgage Lending Act License and a Financing Law License. You can see a full list of the company’s licenses and registrations on the Nationwide Mortgage Listing System and Registry (NMLS) website.
Awards and certifications
Rocket has made a significant impact on the mortgage lending industry. As a result, it has earned a few awards in recent years, including:
- “Best Firms for Customer Service: Mortgage Lenders — Gold Award Winner,” by Kiplinger’s Personal Finance, 2021.
- “One of the Best Online Lenders of 2020,” by Money.com, 2020.
- “The Best for Loan Options and Online Application,” by The Motley Fool, 2022.
- “The Best Lender of Flexible Mortgage Terms,” by Forbes Advisor, 2022.
Third-party ratings
Fitch is a credit rating agency that provides predictive opinions on the ability of companies to meet their financial obligations. In May of 2022, Fitch gave Rocket Mortgage a BB+ rating which indicates a stable outlook. The agency also noted an upward overall trend.
Moody’s Investor Service, another credit rating agency, also gives its opinion on the relative future credit risk of businesses. In September of 2021, it assigned Rocket Mortgage a rating of Ba1, which is considered non-prime and subject to substantial credit risk. However, Moody also said Rocket’s outlook is positive and the lender is likely to soon move into a moderate risk rating that’s considered investment grade.
Regulatory or legal actions
In the process of conducting a high volume of business, it’s unsurprising that Rocket has had a few regulatory actions taken against it. The following cases have been reported to the NMLS over the past few years.
- April 2016: Consent Order in Washington requiring the company to comply with the Consumer Loan Act when advertising. Specific orders included complying with laws that prohibit unfair or deceptive practices against any person.
- April 2018: Consent Order in Massachusetts in response to allegations of non-compliance pertaining to data reporting under the Home Mortgage Disclosure Act (HMDA).
- May 2018: Stipulation and Order in Utah for engaging in false or misleading advertising.
- November 2018: Consent Order in Alaska for violating a law that requires mortgage loan originators (MLOs) to conduct activities that require a license from registered branch offices, not from unregistered homes.
- July 2019: Agreed Order in Kentucky for violating a law that requires MLOs to conduct activities that require a license from registered branch offices, not from unregistered homes.
- September 2021: Settlement Agreement and Order in Alabama in response to allegations of breaking advertising and marketing regulations.
- September 2021: Settlement Agreement and Order in Mississippi in response to allegations of breaking advertising and marketing regulations.
- September 2021: Settlement Agreement and Order in Washington in response to allegations of breaking advertising and marketing regulations.
Rocket Mortgage’s Accessibility
While Rocket Mortgage has led the way in the online mortgage lending space, you may be wondering how easy it is to get support from the company when you need it. Here’s a closer look at the company’s availability, contact information, user experience, and limitations.
Availability
Rocket Mortgage lends to residents in all 50 U.S. states. However, you can only access the company’s services online. It doesn’t have any physical branches.
Contact information
Rocket offers two customer support phone numbers. The first (800-603-1955) is for help with online accounts, closed loans, and loans in process. You can reach this support line Monday through Friday from 8:30 a.m. to 9:00 p.m., and Saturdays from 9:00 a.m. to 4:00 p.m.
The second phone line (888-452-8179) is for people who are looking for new loans. The line is open on weekdays from 7:00 a.m. to midnight, Saturdays from 9:00 a.m. to 8:00 p.m., and Sundays from 9:00 a.m. to 7:00 p.m.
An online live chat option is also available seven days per week. The service hours are from 7:00 a.m. to midnight on weekdays and 8:00 a.m. to midnight on weekends.
Note that all of the company’s hours are based on Eastern Time.
You can also create an account that will allow you to sign into a personal dashboard. From there, you can manage your application or loan and access helpful resources.
User experience
Rocket’s platform is very easy to use. The company has streamlined the process of getting a mortgage online through its website and mobile apps.
To apply, Rocket guides you through a step-by-step process. You submit all of your information and, if preapproved, can get a preapproval letter online. Once the application is complete, a Rocket team member is assigned to your account. They can help to support you throughout the mortgage process as needed.
The consensus on the user experience looks to be overwhelmingly positive. Rocket’s Google Play Store app has an average rating of 4.8 out of 5 stars after 16.2K reviews, while the App Store app has a rating of 4.9 out of 5 stars after 115.1K ratings. Further, the company has been the leading mortgage lender in the U.S. since 2017.
Limitations
While Rocket Mortgage does offer support seven days per week, you can’t get help 24/7. The customer service lines close each night. There is also no online form you can fill out if you’d like a response via email. Additionally, for those who prefer to meet someone face-to-face, Rocket Mortgage won’t be the best option as there are no physical branches.
Rocket Mortgage’s Customer Satisfaction
When it comes to customer satisfaction, Rocket has a strong track record. From, 2010 to 2020, the company was ranked as the top provider of customer satisfaction in primary mortgage originations, according to J.D. Power and Associates. Further, J.D. Power also names Rocket as the top company amongst all U.S. mortgage servicers for client satisfaction from 2014 to 2021.
However, it’s not all good news. When reviewing the lender’s profile with the Better Business Bureau, it has a rating of just 2.65 out of five stars after 1,763 reviews. In the past three years, 996 complaints have been filed. So while the majority of the feedback is positive, some borrowers do end up dissatisfied. That said, BBB itself gives Rocket the highest rating possible, an A+, predicting that the business is highly likely to interact with customers.
Note: BBB’s rating is not based on customer reviews. Instead, it is based on factors including complaint history, licensing and government actions, advertising issues, honored commitments to the BBB, and more.
Rocket Mortgage FAQ
What is the minimum credit score for a VA loan through Rocket Mortgage?
Rocket Mortgage allows credit scores as low as 580 for its loans — including VA loans. However, if you want to use 100% of your home's equity with a VA cash-out refinance loan, you'll need a credit score of at least 620.
How long does it take to close a VA loan?
VA loans are estimated to take about 57 days to close, on average. That's a bit longer than the average close time for both conventional and FHA loans. The need for a VA appraisal and tighter property requirements can draw out the process.
What is the maximum VA loan amount from Rocket Mortgage?
Rocket Mortgage offers jumbo VA loans up to $2 million.
Who is eligible for a Rocket Mortgage VA loan?
To be eligible for a VA loan through Rocket Mortgage, you'll need to meet the requirements of the VA and Rocket. These include but are not limited to, being a qualifying military member or Veteran, having a credit score of at least 580, and having a debt-to-income ratio of at least 60%.
Why choose Rocket Mortgage's VA loans over other home loans?
If you qualify for a VA loan, you can take advantage of a variety of VA loan benefits. For example, the loans often don't require down payments or private mortgage insurance. You can also get more affordable mortgage payments than conventional loans due to the lower interest rates.
How We Evaluated Rocket Mortgage VA Loans
We evaluated Rocket Mortgage’s VA loans based on a variety of factors starting with the lender’s product offerings. We analyzed Rocket’s VA loans, what they entail, and where they fall short. Additionally, we looked deeper into Rocket Mortgage as a whole by examining the company’s credentials, accessibility, and customer satisfaction ratings.
Summary of Sacbee’s Rocket Mortgage Review
The bottom line? Rocket Mortgage is a leader in the mortgage industry that’s worth considering for VA loans — as long as you are comfortable with the online loan application process. You can choose from most VA loan programs that exist, including those for buying a new home or refinancing one you already own.
The company has had a few legal actions brought against it and some complaints from past customers. However, it’s received far more praise from customers, various reputable third parties, and industry awards. Interested in learning more? Compare Rocket Mortgage’s VA Loans against the best VA lenders for 2022.
