VA Mortgage Rates

Compare VA Loan Rates

Check out the best VA loan rates for your home purchase or refinance. Loans backed by the U.S. Department of Veterans Affairs (VA) allow eligible military borrowers to buy a home with no down payment or refinance up to 100% of their home’s value.

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Why compare VA mortgage rates?

Shopping with at least three lenders could save you thousands in interest and closing costs. You can get a quick idea of what VA mortgage rates are available by using the form below to choose your loan type, home value, down payment and credit score. Keep in mind, VA loans are only for primary residences and not all lenders are approved to offer VA loans.

What determines VA loan rates?

VA-approved lenders determine VA loan rates based on a number of factors including:

Your credit score. The higher your credit score, typically the lower your rate.
Your loan amount. Lenders may charge a higher interest rate for loans that are unusually small or unusually large.
Your down payment. This is not as much of a factor with VA loans, since a down payment isn’t usually required, but a higher down payment may result in a lower interest rate.
Your mortgage term. Your term is how many years it takes to repay your loan. You’ll usually pay a lower rate for a shorter term like a 15-year fixed-rate mortgage versus a 30-year term, but you’ll have a higher monthly payment amount.
Your home’s location. Mortgage rates vary from city to city and state to state.
The financial markets. VA loan rates change daily, based on a variety of economic factors and monetary policies set by the Federal Reserve. That’s why it’s so important to gather the rate quotes you are comparing on the same day.

How to get the best VA loan rates

Comparison shop. Get a loan estimate from three to five lenders, and be sure to compare APRs as well as interest rates.
Improve your credit score. Pull your credit reports and correct any errors that may be affecting your score. If you still need a boost, taking the time to repair your credit can help you qualify for a lower rate.
Buy discount points. Also called mortgage points, discount points are a way that you can purchase a reduction in your interest rate. It’s not mandatory, but if you can afford to buy your way into a lower rate, you’ll save money over the long term.
Pick a shorter loan term. Most of us see the 30-year mortgage as the standard, but in most of Europe, a shorter 10- or 15-year mortgage is actually the go-to. It’s an option worth considering because if you can afford the higher payments, you’ll save thousands in interest charges over the life of the loan.
Choose a variable-rate loan. If you’re truly on the hunt for rock-bottom rates, ARMs are an option that may allow you to enter a VA loan at the lowest possible interest rate. That said, you need to understand how ARM rates work and be prepared for the full spectrum of possible rates you could face.

What is a VA loan?

VA loans are much like any other mortgage loan, except that the Department of Veterans Affairs “backs” them, which means that if you default on the loan, the VA will pay your lender back a certain portion of the loan. This reduces risk for lenders, which in turn allows them to give military borrowers a great deal and makes VA loan requirements more flexible than what you’d typically find with conventional loans.

VA loan benefits


No down payment	Low interest rates	Qualify with below-average credit	No PMI

Types of VA loans

Purchase loans. The highly popular 30-year fixed-rate mortgage is a common choice for borrowers with VA loans.
Purchase ARMs. Adjustable-rate mortgages (ARMs) allow you to enter a loan at a very competitive interest rate, but the rate will change later on.
Streamline refinances. Also called interest rate reduction refinance loans (IRRRLs), streamline refinances are an option for borrowers who want to replace an existing VA loan with a new one that better suits their financial situation.
Cash-out refinances. If you have a conventional loan, the only way to refinance into a VA loan is through a VA cash-out refinance. This program allows you to pay off your old loan with a new VA loan and take out a lump sum of cash all at the same time.
Construction loans. VA construction loans typically come with lower interest rates than other conventional construction loans, and you’ll have the added benefit of not needing to start paying the loan off until construction has concluded.
Renovation loans. Also called a VA rehab loan, this VA loan type allows you to fund the purchase of a fixer-upper home as well as needed renovations all in one loan.
Farm loans. VA farm loans allow you to buy a farm with the caveat that it has to be purchased as a residential property, not a business, and the land has to already have a residential dwelling on it.
Manufactured home loans. VA loans are very flexible when it comes to manufactured homes: use one to buy a manufactured home, to buy a manufactured home and a plot of land to put it on or to refinance a home you already own at the same time as you purchase a new plot of land to move it to. Just be prepared to put 5% down, as this type of VA loan does require a down payment, even if you have full entitlement.

Pros and cons of VA loans

Pros

You may not need a down payment

You won’t pay any mortgage insurance, regardless of your down payment amount

Your lender can’t charge you more than 1% of your loan amount in total fees

You’ll have more flexible refinance options

You can have multiple VA loans and use your VA loan entitlement over and over

Cons

You may have to pay a VA funding fee of up to 3.6% of your loan amount

You can’t qualify unless you meet military service requirements

You can’t use a VA loan to buy a second home or an investment property

Your home may not meet stringent VA appraisal standards

You may later owe more than your home is worth if you roll the VA funding fee into your loan amount

Frequently asked questions

Military veterans, active-duty service members and eligible surviving spouses may qualify for a VA loan as long as they meet the minimum service requirements and have sufficient VA entitlement.

According to VA guidelines, you are typically eligible for a VA loan if:

You’re an active-duty service member who served more than 90 continuous days of active duty
You’re a veteran, member of the National Guard or Reserve member, and you meet the active-duty requirements for your dates of service
Your spouse was a service member and is missing in action or died while in service or from a service-related disability

To confirm your eligibility for a VA loan and see how much of your VA loan entitlement you have left, apply online for a Certificate of Eligibility at the Veterans Information Portal.

Some VA-approved lenders may offer more competitive rates on purchase loans, while others specialize in low-rate VA refinance programs. Whether you’re buying or refinancing, get at least three to five loan estimates on the same day to ensure you’re snagging the best VA loan rate possible.

Your interest rate is the yearly cost of borrowing money expressed as a percentage rate. It doesn’t include any of the closing costs you may have to pay to get a mortgage. The annual percentage rate (APR) reflects the total cost of your home loan, including lender fees and other charges. Your APR is usually higher than your interest rate. Read more about distinguishing an APR and an interest rate at our article on APR versus interest rate.

VA loan rates tend to be lower than what most borrowers are offered for conventional loans or mortgages backed by the Federal Housing Administration (FHA). However, keep an eye on the APR if you have to pay a funding fee — the total costs may be higher if you’re required to pay the maximum 3.6% of your loan amount.

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Can You Get a VA Home Loan with Bad Credit?

How to Get a VA Funding Fee Exemption

What Is the Minimum VA Loan Credit Score?

8 Steps to Getting a VA Loan for a Multifamily Home