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 personalized VA loan rates?

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.

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 offer lower rates for higher loan amounts.
  • Your down payment. This is not as much of a factor with VA loans, 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 vary from day to day, based on a variety of economic factors and monetary policies set by the Federal Reserve. That’s why it’s so important to gather rate quotes on the same day.

Pros and cons of VA loans 


  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

FAQs about VA loan rates

Who qualifies for VA loans?

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:

  • 90 continuous days of active duty
  • 90 consecutive days during wartime
  • 181 days during peacetime
  • More than six years in the National Guard or Reserve

How do VA purchase rates compare to VA refinance rates?

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.

What is the difference between an interest rate and APR? 

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.

Do VA loans have lower rates than other mortgages?

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.