Current VA loan rates

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.

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For VA loans, the credit standards are sometimes more relaxed compared to those for conventional loans, but generally, you’ll need a 620 minimum to qualify.

“VA doesn’t set a credit score requirement, so technically there isn’t one,” says Chris Birk, vice president at Veterans United Home Loans and author of “The Book on VA Loans,” “but most if not all lenders will have an overlay for credit score. Anywhere from 620 to 660 is pretty common.”

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 (LTV) ratio
• Loan term

To be eligible for a VA loan, you must be an active-duty service member, veteran, current or former National Guard or Reserve member or surviving spouse. You’ll also need to obtain a certificate of eligibility (COE) from the VA before starting the loan application process. You can apply for a COE by mail, online or through your lender.

Read more about VA loan requirements.

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 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.

With a rate lock, you’ll freeze the rate on your mortgage, typically by paying a fee to the lender. The lock guarantees (with some exceptions) that your desired rate will remain available for a specific period of time, so you won’t be affected if rates climb between submitting an offer and closing on the loan.

Most rate-locks are between 30 days and 60 days, although you might be able to obtain a lock of 90 days, 120 days or longer. Bear in mind that longer rate-locks tend to be more expensive.

Of course, locking a rate comes with risk. If you lock too early, you might miss out on the opportunity for a better rate prior to completing the purchase. On the other hand, you might want to secure a lower rate if rates are trending up.