Review current VA mortgage rates for December 1, 2023. The table below enables you to compare APRs, VA rates, monthly payments and closing costs for leading lenders in your state. VA loan rates vary depending on many factors including loan-to-value (LTV) ratio, mortgage type, loan term and lender. Adjust the inputs in the refine your search menu to compare updated VA mortgage rates and lenders based on your individual criteria including loan amount and purpose. We recommend that you contact at least five lenders below to find the best VA loan terms.
December 1, 2023
The VA Home Loan Program enables eligible military personnel and veterans to buy a home with no down payment. The program offers several other advantages that make owning a home more affordable. Below we offer some of our best advice to help you find the VA loan that is right for you.
Save Money With Lower VA Rates. VA mortgage rates are typically .250% - .500% lower than the current conventional loan rates, which is one of the main benefits of the VA Program. This is because military personnel are considered credit-worthy borrowers and because the government guarantees 25% of the loan amount, which protects lenders against default. VA rates also tend to be lower for borrowers with below average credit. Lower mortgage rates reduce your monthly payment which enables you to afford a higher loan amount.
Pay Discount Points to Lower Your Rate Even More. You can choose to pay discount points to reduce your mortgage rate even more. A discount point is an upfront fee equal to 1% of your loan amount that typically results in a 0.250% reduction in your interest rate. Discount points are optional so it is completely your choice to pay them. If you have excess funds, want to decrease your rate and monthly payment and plan to live in your home for at least five years then discount points may be the right call.
Shop Multiple VA Lenders. The Department of Veterans Affairs determines the qualification requirements and eligibility guidelines for the program but you apply for VA loans with approved lenders such as banks, credit unions and mortgage brokers. This enables you shop multiple VA lenders and compare loan proposals to find lowest mortgage rate and fees. Shopping for your mortgage is the best way to save money on your loan.
Why VA Closing Fees Are High. The closing fees in the lender table above are high because the VA Program requires most borrowers to pay a one-time VA funding fee at closing. The funding fee can costs thousands of dollars and explains why VA closing costs are so much higher than the fees for conventional mortgages. The good news is that the VA funding fee can be added to your loan amount so you do not need to pay for it out of pocket.
No Minimum Credit Score. Do you know that the VA Program has no minimum required credit score and that lenders are advised to review a borrowers entire credit profile and loan application? While some lenders apply their own credit score requirement, the VA Program is well-suited for applicants with limited or challenging credit histories.
The VA home loan program enables eligible borrowers to buy a home with no down payment which means they can get a mortgage for 100% of the property purchase price. Most mortgage programs require borrowers to make a down payment of 3% - 20%. Active and retired military personnel, including individuals in the reserves and national guard are eligible for the VA home loan program.
Unlike the FHA program and most other low or no down payment mortgage programs, the VA program does not require borrowers to pay an ongoing mortgage insurance premium. Not requiring ongoing mortgage insurance reduces your total monthly housing expense and makes owning a home more affordable.
Borrowers can use the VA home loan program to buy a home or to refinance their existing mortgage. The VA offers a special refinance program, also known as a VA Streamline or IRRRL Refinance, that requires less paperwork than a regular refinance, making the process more efficient for borrowers. The VA also offers the VA Energy Efficient Mortgage (EEM) Program that enables borrowers to include up to $6,000 in energy efficiency home improvements in their VA loan amount.
The VA loan program requires most borrowers to pay a one-time, upfront VA funding fee. The funding fee ranges from 1.40% - 3.60% of the loan amount and varies based on your mortgage amount, loan program, down payment (if any) and if you are using the VA program for the first time. For applicants who are required to pay it, the VA funding fee can be financed, or added to your mortgage amount, so you may not need to pay the fee out of pocket. Depending on your circumstances, the fee can cost thousands of dollars so being able to add it to your loan significantly reduces the funds required to close your mortgage, making the VA program accessible to more borrowers.
Starting January 1, 2020, VA loan limits do not apply to applicants with their full entitlement. This means that you can use a VA loan to buy a home with no down payment, regardless of the purchase price and mortgage required, as long as you meet program qualification requirements. This also means that jumbo mortgages are eligible for the VA program.
One of the best features of the VA Mortgage Program is that eligible borrowers can use the program an unlimited number times. In most cases applicants are required to restore their VA entitlement by paying off their existing loan before they can qualify for a new VA loan. Additionally, the funding fee increases with subsequent uses of the VA Program but that cost is offset by lower VA mortgage rates. Repeat VA borrowers should check with a lender or the Department of Veterans Affairs to determine if they are eligible for another VA loan.
Comparing VA mortgage rates can save you thousands. Use our rate tables to find the lender offering the lowest rates and fees
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Review VA mortgage rates from leading lenders. Our lenders offer highly competitive terms to win your mortgage business
Determine what size VA mortgage you qualify for and the amount of the required up-front VA funding fee
Review our in-depth overview of of the VA home loan program including borrower qualification and program eligibility guidelines
Review our detailed comparison of low and no down payment mortgage programs including key program attributes and eligibility requirements
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"VA Home Loans." VA. U.S. Department of Veterans Affairs, 2020. Web.