I want to talk about something that doesn’t get enough attention—how veterans get ripped off on VA loans and how to spot it before it happens.

After nearly two decades as a mortgage lender and after helping thousands of veterans buy homes, I’ve noticed a pattern. When a VA loan goes sideways, it’s usually not because the veteran did anything wrong. It’s because they were misled by a lender who knew better and counted on the borrower not knowing the difference.

So let’s walk through the biggest VA loan red flags I see. If you hear any of these, your next step should be simple: walk away.

🚩 Red Flag #1: “We’re Part of the VA” (or “VA Assigned You to Us”)

This one is non-negotiable.
If a lender implies they are affiliated with the VA, assigned by the VA, or recommended by the government, that’s your sign to exit immediately.

Here’s the truth:

• The VA does not issue loans

• The VA does not recommend lenders

• The VA does not assign veterans to lenders

VA loans are provided by private lenders, then insured by the VA. Anyone pretending otherwise is either uninformed or intentionally deceptive, and neither is acceptable when you’re making one of the biggest financial decisions of your life.

If this topic feels familiar, it builds directly on what we covered in Why Veterans Choose VA Loans, where we break down how VA loans actually work and why understanding the structure matters.

🚩 Red Flag #2: “VA Sets the Interest Rates”

No. Just… no.

VA guidelines exist, but VA does not set interest rates or lender fees. Two lenders can offer the same VA loan on the same day with drastically different pricing.

When a lender tells you “VA sets the rate,” one of two things is happening:

1. They don’t understand VA lending (bad), or

2. They’re using VA language to justify higher rates and fees (worse)

Either way, this is a trust-breaker.

This ties closely to what we discussed in What Lenders Look For in Preapproval—a good lender explains numbers clearly and welcomes comparison. A bad one hides behind vague statements.

🚩 Red Flag #3: Dodging Rate & Fee Questions

If you’ve completed an application and the lender still won’t clearly explain:

• interest rate

• lender fees

• closing costs

…that’s not an accident.

A competent lender does not hide from numbers. Transparency is literally the job. When someone avoids giving you details, it’s usually because once you see them, you’ll leave.

If a lender can’t explain your costs in plain language, they don’t deserve your business.

Why This Matters (Especially for Veterans)

VA loans are one of the strongest homebuying benefits available, but that strength also makes them a target. Some lenders rely on branding, buzzwords, or fear to overcharge veterans who trust the process without questioning it.

And that’s why education matters.

If you’ve been following along with our recent VA blogs, whether it’s VA Homebuying Goals for the New Year or Why Veterans Choose VA Loans, you’ll notice a common theme:

Knowledge protects you.

Final Thoughts

If you want a second set of eyes on a loan estimate, we’re happy to help. Sometimes we’ll tell you, “That’s actually a great deal—stay with them.” Other times, we’ll tell you the hard truth.

Either way, veterans deserve honesty.

We Are Here For You! 🙂

📞 Call or Text: (786) 933-2077
📝 Get Pre-Approved: https://www.zerostressmortgage.com 
📅 Set Up a Time to Chat: https://calendly.com/jennifer-beeston 

My team is available seven days a week. There’s no reason any veteran should feel confused or taken advantage of when using their VA benefit.