Compare Current VA Mortgage Rates

If you’re a veteran or active-duty service member, a mortgage guaranteed by the Department of Veterans Affairs (VA) could be your ticket to affordable homeownership. VA loan interest rates are typically lower than conventional loan rates. These loans also generally have no or low down payment requirements and less stringent credit requirements compared to other home loans.

Current VA Mortgage Rates

VA Loan Rates vs. Conventional Mortgage Rates

Eligible borrowers looking to finance a home with a VA loan are in luck when it comes to mortgage interest rates, as VA loans tend to have lower rates than conventional loans. For instance, while VA rates generally follow the average 30-year fixed rate, they’re typically lower—often by half a percentage point or more.

While a half of a percentage point may not seem that dramatic, it can significantly boost your purchasing power or long-term savings. For instance, on a $400,000 home with a 0% down payment, a 6% interest rate translates to roughly a $2,398 monthly principal and interest payment. Knock that down to 5.5% and you’ll pay about $2,271 a month, $127 in monthly savings—or $45,720 more in your pocket over the full loan term of 30 years.

Alternatively, the potential added purchasing power the lower interest rate affords enables you to consider higher-priced homes while staying within your financial comfort zone.

Types of VA Loans

A great benefit of VA loans is that they’re not one-size-fits-all. Eligible borrowers can choose from different loan types and term lengths as well as between fixed- or adjustable-rate mortgages (ARMs) to fit their needs. Additionally, a VA loan can be used to either purchase or refinance a home.

Purchase Loan

The most common type of VA loan is a purchase loan, which allows borrowers to buy, build or revitalize a home.

Qualifying homes include single-family homes of up to four units, condominiums in VA-approved locations or manufactured homes or lots. Eligible borrowers can also refinance their existing VA-backed mortgage or assume a seller’s VA loan.

Jumbo VA Loan

Jumbo VA loans allow qualified borrowers to buy higher-priced homes that exceed VA conforming loan limits.

​​VA jumbo loans offer several advantages over non-VA jumbo loans, including lower interest rates, no private mortgage insurance (PMI) and no set borrowing limit. However, some lenders may impose stricter requirements for VA jumbo loans than standard VA loans. For example, you might need a higher credit score and larger cash reserves to qualify.

Eligible veterans with full entitlement—meaning they don’t have a home loan funding limit—typically don’t need to make a down payment on a VA jumbo loan. Veterans with partial entitlement have a loan limit and may need to contribute a down payment.

Native American Direct Loan (NADL)

The NADL program is available to Native American veterans or veterans with a Native American spouse who want to buy, build or renovate a home on federal trust land. Borrowers also have the option to refinance an existing NADL to achieve a lower rate.

Interest Rate Reduction Refinance Loan (IRRRL)

This “streamline” refi loan allows eligible borrowers to replace their current VA loan with a new loan under re-established terms. This allows you to either lower your mortgage rate or stabilize your monthly payments by moving from an adjustable-rate to a fixed-rate loan.

Cash-Out Refinance

This type of loan is for qualified borrowers who want to tap into their home equity or refinance a non-VA mortgage into a VA loan. To qualify, you must live in the same residence you’re refinancing, provide a Certificate of Eligibility (COE) as proof of your service and meet all other lending standards and requirements.

How To Qualify for a VA Loan in 2025

VA loans offer a vital pathway to affordable homeownership for service members and their spouses. However, the VA has strict eligibility guidelines, and lenders may have their own specific requirements for VA loan applicants.

Here are some common qualification criteria you can expect to encounter when applying for a VA loan:

• COE: To qualify for a VA-backed home loan, borrowers must obtain a Certificate of Eligibility. This document confirms to the lender that the borrower meets the military service requirements necessary for a VA loan.
• Credit score and debt: The VA doesn’t mandate a minimum credit score for VA loans, but most lenders require a score of at least 580.  Similarly, while the VA doesn’t impose a maximum debt-to-income (DTI) ratio (your total monthly expenses against your total monthly gross income expressed as a percentage), borrowers with a DTI ratio over 41% may encounter challenges during underwriting. Some lenders may be unwilling to approve loans for borrowers with a DTI ratio of 45% or higher. 
• Income: The VA doesn’t set specific income requirements for loan applicants, but lenders assess a borrower’s DTI ratio to determine if they have enough gross monthly income to cover major debts and essential living expenses. Lenders also evaluate residual income (the amount of money left after paying major expenses) to ensure borrowers can manage day-to-day costs. 
• Down payment and funding fee: While VA loans generally don’t require a down payment, most borrowers must pay the funding fee, which helps sustain the VA loan program. Opting to make a down payment can help reduce this fee. For example, borrowers who contribute less than 5% upfront pay a higher funding fee rate than those who put down 5% or more.
• Property: VA property appraisal approval is required for purchase loans.

How to Get the Best VA Loan Mortgage Rate in 2025

Just as with traditional loans, there are steps you can take to leverage a more favorable interest rate and save you even more money in the long run.

• Go lender shopping. Rates can vary significantly between VA mortgage lenders, so compare offers by submitting multiple applications to help you narrow down the best rates and terms.
• Boost your credit score. While the VA doesn’t require a minimum credit score, lenders often offer lower interest rates to borrowers with higher scores. You can strengthen your credit score and overall financial profile by paying down existing debt, making on-time payments and reviewing your credit report for any errors.
• Lower your DTI ratio. Lenders typically want to see a DTI ratio of 41% or less for VA loan borrowers. However, the lower this figure, the better as it signals to lenders your ability to take on debt, upping your chances for loan approval and more favorable mortgage rates and terms. 
• Consider a shorter-term loan. A 15-year VA loan typically comes with lower interest rates compared to a 30-year term, which can save you significant money over time. If your budget allows for higher monthly payments, opting for a 15-year term can significantly reduce your overall interest costs and help you pay off your loan faster.
• Time your rate lock. Mortgage rates fluctuate daily—even hourly—with market conditions. Collaborate with your lender to monitor rate trends and lock in a favorable rate when it aligns with your timeline.
• Ask your lender about discount points. If you intend to stay in your home long enough to recoup the costs, it may be worth paying upfront for discount points to lower your mortgage interest rate, which will save you money over time.

Breaking Down Other VA Loan Costs

Getting a mortgage typically involves numerous fees and expenses, and VA loans are no different. To reduce some of your upfront home-buying expenses, work with your agent to see if the seller is willing to cover some closing costs.

Here are some of the primary costs to expect when taking out a VA loan: