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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Not all lenders are approved to offer VA loans. Shop with at least three to five lenders and compare VA loan rates and closing costs. You can get a quick idea of what VA mortgage rates are available by choosing your loan type, home value, down payment and credit score. Keep in mind, VA loans are only for primary residences.
VA-approved lenders determine VA loan rates based on a number of factors including:
You may not need a down payment
You won’t pay any mortgage insurance, regardless of your down payment amount
You may be approved with more debt than other mortgage programs
Your lender can’t charge you more than 1% of your loan amount in total fees
You’ll have more flexible refinance options
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 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
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. You can verify your current entitlement by obtaining an online Certificate of Eligibility.
According to VA guidelines, you are typically eligible for a VA loan if you served:
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.
Yes. 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.