Current VA loan rates

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Bankrate has been the authority in personal finance since it was founded in 1976 as the “Bank Rate Monitor,” a print publication for the banking industry. Bankrate has been surveying and collecting mortgage rate information from the nation’s largest lenders for more than 30 years. Hundreds of top publications, such as The New York Times, Wall Street Journal, CNBC and others, depend on Bankrate as a trusted source of financial information, so you know you’re getting information you can trust.

How Bankrate mortgage rates are calculated

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans. The interest rate table below is updated daily to give you the most current purchase rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate rate averages.

What is a VA loan?

VA home loans are mortgages that are partially backed by the U.S. Department of Veterans Affairs, or VA. They are available to current or former members of the military, and can be a great option for borrowers who qualify. VA loans don’t require a down payment or mortgage insurance. This makes them especially competitive with other loans that allow for low down payments, because those usually require mortgage insurance if the buyer puts down less than 20 percent. Mortgage insurance can add hundreds of dollars to your mortgage bill each month.

"The VA loan program is one of the best available for eligible homebuyers,” says Kevin Parker, vice president of field mortgage originations at Navy Federal Credit Union. “VA loans offer lower interest rates than conventional products which means VA buyers can save money in interest over the life of the loan. VA loans also do not require down payments which can be an especially attractive benefit for first-time homebuyers. Additionally, VA buyers do not have to pay private mortgage insurance, which is sometimes required when paying little down on a conventional product and can add a significant cost to monthly mortgage payments.”

VA loans have specific appraisal and home inspection requirements, which allows buyers to feel more confident in the property they are purchasing, Parker points out.

Who sets VA loan rates?

VA loan lenders determine VA loan rates, which can be lower than the interest rates for conventional loans. VA loans come from a variety of mortgage lenders, including banks, non-bank institutions and credit unions.

It’s important to shop around, as rates can differ widely by lender. In fact, a 2020 study by mortgage technology company Own Up found that in a cohort of 20 VA loan lenders, the interest rates from the highest-cost lender and lowest-cost lender differed by up to 1.25 percentage points. A gap like that, and even slight changes in interest rate, can significantly impact the overall cost of your loan.

Pros and cons of VA loans

A VA loan offers several benefits you may not get with other types of loans.

• Generally lower rates than conventional mortgages
• More flexible credit underwriting
• No down payment or mortgage insurance requirement
• Refinance options: If you currently have a VA loan, you can get an Interest Rate Reduction Refinance Loan (IRRRL) with a lower rate and lower your monthly payments, or do a VA cash-out refinance. If you currently have another type of mortgage, you can refinance it into a VA loan with a lower rate and applicable benefits if you’re eligible.

However, there are also potential drawbacks.

• Certain eligibility requirements
• Generally can’t be used to purchase a second home or investment property, with some exceptions
• VA funding fee based on current duty status, amount of down payment (if making one) and how much is borrowed

Who qualifies for a VA loan?

VA loans are made by private lenders and are available to active duty service members, veterans, current and former National Guard and reserve members, and surviving spouses. Interested borrowers will need to obtain a certificate of eligibility from the U.S. Department of Veterans Affairs.

• Veterans
• Active duty servicemember
• Current or former National Guard or Reserve member (regardless of whether they have been activated for Federal Service)
• Discharged member of the National Guard (wh(regardless of whether they have been activated for Federal Service)
• Surviving spouse

Eligible homebuyers can apply for a certificate of eligibility in several ways: by mail, online or through your lender.

How a VA loan compares to other mortgage rates

In general, VA loans tend to have lower rates than other mortgages such as conventional loans and FHA loans. Below, you can see how a VA loan differs from a conventional 30-year fixed mortgage.

How do I find the best VA loan rates?

Different mortgage lenders offer different rates, so it’s important to shop around if you want to get the best deal. You can check our rate table above regularly for current information on various lenders. You can also visit lenders’ websites to see their VA interest rates today, and research the best VA mortgage lenders.

How are VA purchase rates different from VA refinance rates?

VA loan purchase rates can vary from the rates you’d find on a VA loan refinance. The rate you may get for either depends on factors such as:

• Credit history
• Loan-to-value ratio

Loan term

If current interest rates are lower than the rate on your existing mortgage, now may be a good time to refinance.

How are VA loan rates determined?

VA loan rates are contingent on a variety of factors ranging from your credit and financial situation to economic conditions. A credit score of 620 and above can get you a more favorable VA loan rate, but there is no minimum credit requirement set by the VA. In general, the lower your credit score, the higher the interest rate you’ll receive for your mortgage.

VA loan lenders also look at your debt-to-income (DTI) ratio, which is the total of all your monthly debts including the new mortgage payment divided by your gross monthly income. A DTI ratio of 41 percent or lower is usually preferred.

Economic conditions can shape the VA loan rate you receive as well. During recessions, rates tend to drop lower. If the economy is doing well, rates generally rise.

What are VA loan fees?

If you’re borrowing a VA loan, there will be other costs in addition to interest you pay on the mortgage. The first is the VA funding fee, which varies based on the size of your down payment, how much you borrow and your current duty status, as well as whether this is your first time borrowing a VA loan.

There are also closing costs for a VA loan, which can include the price of a credit check, a VA appraisal fee and title insurance, among other expenses.

Learn more about VA loans

• VA mortgage resources
• VA loan calculator
• Best VA loan lenders
• Guide to VA mortgages
• Understanding VA construction loans