VA Loan Rates

VA loans offer veterans significant advantages, thanks to their backing by the federal government. This federal support helps stimulate economic growth and often allows veterans to benefit from more favorable loan terms compared to conventional loans.

Because of this support, VA loans typically come with lower interest rates than those available through standard home loan programs. This means veterans can secure better rates and save more over the life of their loan.

Key Factors to Consider When Choosing a Rate:

  • Loan Term: Decide on the length of your loan term, which can be 30, 25, 20, or 15 years. Shorter terms, such as 15 years, often come with lower interest rates but higher monthly payments compared to longer terms like 30 years.
  • Current Market Conditions: Your rate will be influenced by prevailing market conditions. Staying informed about the market can help you choose the best time to lock in a rate.
  • Debt-to-Income Ratios: This ratio reflects your ability to manage debt and can impact your rate. For instance, transitioning from a 30-year to a 15-year loan can affect your debt-to-income ratio and overall affordability.
  • Credit Scores: Your interest rate is based on the middle of your three credit scores. While good credit typically helps secure better rates, some lenders may offer more favorable terms or additional incentives for higher credit scores.
  • Poor Credit: Often indicates underlying issues, such as missed mortgage payments, collections, judgments, or liens on your home can keep a loan from closing. While medical bills and other small debts can lower credit scores, VA loans are more lenient and do not require these debts to be paid off. However, it’s important to note that although VA loans are designed to be accessible, a low credit score can still signal potential challenges that might impact your ability to secure the loan. In this way, credit scores and overall qualification requirements are often interconnected. While a VA Streamline loan can be available with a credit score as low as 480, it’s important to understand that other factors, such as missed payments or outstanding collections, may still impact your loan application and ability to obtain your desired rate or loan.

It’s important to note that while the VA guarantees the loan in case of default, they do not provide the actual funding. This role is fulfilled by lenders, who offer the necessary funds for your property.

For individuals with strong credit scores—generally 620 or higher—better interest rates and additional incentives are often available. Although the VA does not impose specific credit score requirements, lenders have the discretion to establish their own criteria and may choose to deny loans to applicants with scores below their set thresholds. Ultimately, the final decision on loan approval rests with the lender. However, your loan officer may be able to negotiate exceptions based on the current status of your loan application.

Loan officers are responsible for locking in your rate, with typical lock periods ranging from 30-45 days for refinances to 60 days for purchases. Locking in your rate provides security and protects you from market volatility.

If you’re ready to lock in your rate or have any questions, contact us at (801) 871-3739. At VA Help Center, we strive to offer the lowest rates possible. If rates decrease after your loan is locked, we have options to adjust your lock and secure additional savings.

Call us today to start the process and secure your ideal rate!