No impact to your credit score
Loan Product | Interest Rate | APR |
|---|---|---|
| 30-year fixed rate VA mortgage purchase | 6.00% | 6.20% |
| 15-year fixed rate VA mortgage purchase | 5.41% | 5.76% |
| VA 30-year 5/1 ARM mortgage purchase | 5.99% | 6.21% |
| 30-year fixed rate VA refinance | 6.63% | 7.00% |
| 15-year fixed rate VA refinance | 6.14% | 6.83% |
Average interest rates disclaimer Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
Chief Consumer Finance Analyst at LendingTree |
“When the Fed raises or lowers rates, it doesn’t affect mortgage rates directly the way it does with credit cards. Mortgage rates do tend to fall when the Fed cuts rates, but they don’t necessarily move in lock step. For example, we actually saw rates rise in late 2024 despite rate cuts from the Fed. The current federal funds rate is a range of 4.25% to 4.5%. It’s possible that the Fed may lower rates (in July 2025), but most observers say it’s more likely to happen at the Fed’s September meeting.” |
VA purchase rates are typically slightly cheaper than refinance rates, but some lenders may offer more competitive rates on the loan type they specialize in. 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.
VA loan rates tend to be lower than what most borrowers are offered for conventional loans or FHA loans, as they’re guaranteed by the U.S. Department of Veterans Affairs.
However, you’ll need to keep an eye on a VA loan’s total costs, also known as its annual percentage rate (APR). If you have to pay a funding fee (most VA borrowers do) that can push up your total loan costs. You can find APR information on Page 3 of your loan estimate.
Read more about the difference between an APR and an interest rate.VA loans typically come with very competitive rates, but there’s a lot to consider beyond interest rates when choosing a mortgage. Every loan program comes with its own unique costs that also affect how expensive a loan will be. Here’s a breakdown of the costs typically associated with a VA loan versus a conventional loan.
| VA loan | Conventional loan | |
|---|---|---|
| Funding fee | 1.25% to 3.30% of the loan amount | Not required |
| Down payment | 0% with full entitlement | At least 3% of the home’s purchase price |
| Lender fees | Capped at 1% of the loan amount | Typically between 2% and 6% of the loan amount |
| Mortgage insurance | Not required | Required if you put down less than 20% |
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Chief Consumer Finance Analyst at LendingTree |
“Current members of the military, veterans and eligible spouses can qualify for these loans, which typically don’t require a down payment,” Schulz said. “They also tend to have lower interest rates than conventional loans and less stringent lending standards, meaning that you can qualify with a lower credit score or higher debt-to-income ratio.” |
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.
According to VA guidelines, you typically can apply for a VA loan if you meet the following eligibility requirements:
To confirm your eligibility for a VA loan and see how much of your VA loan entitlement you have left, apply online for a certificate of eligibility at the Veterans Information Portal.
A VA loan is a mortgage that’s backed by the U.S. Department of Veterans Affairs (VA). This means that if you default on your loan, the VA will pay your lender a portion of the outstanding loan balance. The extra protection allows lenders to set VA loan requirements that are more flexible than what you’d typically find with conventional loans.
The 1% rule represents the maximum amount that VA borrowers can be charged for certain fees when closing on their mortgages, particularly lenders’ fees like origination or administrative fees. Learn more about the VA’s allowable and nonallowable fees.
Yes, if you have full entitlement, you won’t have to make a down payment on your VA loan.
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