Guide: Finding Competitive VA Rates Today

A home loan is often a long-term commitment. Before signing on to a mortgage that could last as long as thirty years, it is important to be sure that you are receiving the best interest rate possible.

VA loans often offer qualified borrowers great options and opportunities to save on their home purchase. But even these loans are subject to interest rates that can vary between lenders. To be sure that you are getting the best deal to fit your finances, it is important to understand the best ways to find top VA rates today.

Some common questions regarding this VA mortgage rates include:

  • Can a lending professional help me find VA rates today?
  • How can I compare different lenders to find the best VA loan rates?
  • What VA loan options exist to help me find competitive VA rates for my finances?
  • Can I refinance my existing loan to receive low VA rates?

This guide was specifically tailored by AdvisoryHQ to answer each of these questions and more. The information presented here can help prospective home buyers understand how to find the best possible VA rates today and the key factors that can affect potential VA-backed mortgage rates.

See Also: How to Get VA Small Business Loans for Veterans | Guide

What Is a VA loan?

A VA loan is a type of guaranteed mortgage that has been backed by the U.S. Department of Veterans Affairs, or the VA. Guaranteed mortgages are home loans that are protected against default by a third party, in this case, that is the VA.

In the event that the homeowner fails to make their mortgage payments, the Department of Veterans Affairs will cover the loan. This protection gives lenders security, which allows them to offer low VA rates and flexible qualification requirements.

Finding Competitive VA Rates Today

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VA loans are designed to help veterans and their families access affordable private housing. These loans are subject to special qualification standards set up by the VA to control:

  • Loan use
  • Qualification requirements
  • Loan limits

The VA also imposes guidelines dictating who can access the loan program based on their income and the nature of their military service.

VA loans offer borrowers a number of money-saving benefits. Qualified recipients are not required to make a down payment on their home without being subjected to private mortgage insurance. Borrowers are also not required to pay penalties for selling their home before the loan is terminated and can enjoy special VA loan interest rates.

VA Interest Rates and Lenders

While this program is backed by the federal government, the loans are issued by private lenders. This means that in addition to the program guidelines, lenders are free to impose their own qualification requirements and VA interest rates.

This means that VA interest rates can change depending on the requirements of individual lending companies and an applicant’s personal finances. Finding the best VA interest rate possible can be affected by a number of factors.

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Use a Lender to Find VA Interest Rates Today

For the most part, your lending company will determine your VA loan interest rate. Though the VA guarantees these loans, private lenders can set their own additional VA loan rates and requirements, as long as they follow the program’s existing qualification guidelines.

Finding the best VA interest rates today often means finding the best lending company. VA loan rates originate from the lending company and are based on internal standards, which means that the best VA loan rates can vary from company to company. To find a lender with the best VA interest rates today, it is important to hold your lending company to a high standard.

Find VA Rates Today with an Approved Lender

To find competitive VA interest rates today, one of the first things to look for is a lending company that has been approved by the VA. Working with an approved lender is extremely important because VA loans are specialized.

VA-approved lenders have experience and expertise that allows them to guide their customers through the VA loan application process and access the best VA loan rates.

VA loans have special requirements and exemptions that lenders must be familiar with to help their customers find the best VA loan rates possible. Approved lenders also have the added bonus of working with military families frequently, which makes them especially attuned to their unique needs.

Clear Communication Is Key

The best lender will help you understand what kind of documents you will need to provide during the course of the approval process. They should also be able to offer you services from a loan team to ensure that you are always working with a VA loan expert. This can be crucial in finding the best VA loan rates quickly and cutting back on communication issues and unnecessary delays.

Some lenders will be able to secure your certificate of eligibility for you through an online VA portal. Not every lender will offer to do this, but it shows a certain level of familiarity and dedication to the VA loan application process. This can help borrowers focus on finding their new home and the best VA loan rates.

Use a VA Loan Interest Rate Expert

Even if you are working with an approved lender, be sure that your particular agent is familiar with the VA loan program. They should be able to easily explain how VA loans work and help you understand how the VA appraisal process and property restrictions.

It is also important to have a lender who is willing to explore different loan options with you and help you determine that the program and their lender is able to offer you the best VA loan rates.

Each of these lender qualities can help you judge a company’s competence. To find the most competitive VA rates today, it is important to work with a company that clearly knows how to navigate the system and make your needs a priority.

Shop Around to Find VA Interest Rates Today

Because VA loans are issued through private lenders, they can impose their own requirements and VA loan rates. It is very important to find the best lender possible, but even among good VA-approved companies, not all lenders are equal.

Different lenders often have slightly different requirements, which means that different companies will likely offer identical customers slightly different VA loan rates. The most effective way to find the competitive VA interest rates today is to compare a few different lenders.

Shopping for different VA interest rates allows customers to choose the lender that best fits their needs. Customers are also able to use this method to verify that a lender is giving them a realistic offer and not an inflated VA loan interest rate.

Related: How to Find & Get the Best VA Interest Rates

Using Pre-Approval to Find VA Interest Rates Today

Mortgage pre-approval is a great way to shop around for VA interest rates. Pre-approval is one of the first steps taken in the mortgage approval process. Lenders will briefly review an applicant’s financial information in order to give them a preliminary estimate of their qualifications.

Using Pre-Approval to Find VA Interest Rates Today

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Through pre-approval, lenders are also able to provide a realistic estimate of how much a customer can borrow and what their VA rates are likely to be. Lending companies consider a number of factors during the pre-approval process.

Factors That Determine the Best VA Loan Rates

One of the biggest factors that determines a customer’s VA rates is their credit score. Though there is no minimum credit requirement for a VA loan imposed by the program itself, lenders are free to build their own standards to determine VA rates.

Typically, lenders require applicants to have a FICO credit score of at least 620 to qualify for a VA loan. This is, of course, the minimum requirement. Applicants with higher credit ratings are generally offered low VA rates, which can be a big money-saver.

Lenders will also consider an applicant’s income and employment when calculating VA interest rates today. There is no specific requirement set up by the program that applicants must be employed. However, it is crucial that they have a steady stream of income to qualify for the program.

Most lenders are looking for applicants who have at least 2 years of reliable, full-time employment, though there is always room for negotiations and exceptions. Lenders look at these factors to determine how likely an applicant is to be able to reliably repay their loan. Those who are judge to be most likely to repay reliably are often given low VA rates.

Though traditional employment income is the most common form accounted for by applicants, many lenders will also count other forms of income toward the qualification requirements. Many lenders do require that additional forms of income be verified and may need proof that they will continue for at least 3 additional years. These forms include:

  • Basic allowance for housing
  • Disability payments
  • Social Security income
  • Workers compensation
  • Retirement income
  • Annuities
  • Child support
  • Alimony

Other financial and employment factors will be considered in the pre-approval process to determine qualification and the VA interest rate. These factors are all designed to help the lender determine that an applicant will be able to repay their loan. These additional factors include:

  • Debt-to-income ratio
  • An analysis of unemployment gaps
  • Debts including tax and tax liens
  • Residual income

Popular Article: How to Qualify for a VA Loan?

Different Loans Offer Different VA Rates Today

The VA loan program offers qualified applicants different options when approaching a VA interest rate. To find the best VA loan rates for your finances, it is important to consider the different loans available. Two types of VA loans that offer different VA loan rates today are adjustable-rate and fixed-rate loans.

Adjustable-Rate VA Loans

Adjustable-rate loans have interest rates that can change up to 1% each year and as much as 5% over the lifetime of the loan. An adjustable-rate loan often offers borrowers low VA rates at the beginning of the loan. However, over the course of the loan those low VA rates are likely to increase.

Adjustable loans can be a good option for borrowers who do not plan to live in their new home for more than a few years. This is because they are able to take advantage of low VA interest rates today, but will not hold the mortgage long enough to pay the higher rates.

Fixed-Rate Loans

Fixed loans have interest rates that are locked in at the beginning of the loan term. These rates cannot be changed regardless of how the market fluctuates. When looking for VA loan rates today, it is important to consider the current market.

If interest rates are low, but on the rise, using a fixed loan will often give borrowers the most competitive VA loan rates today. This is because, no matter how high rates soar, a fixed loan will stay locked in at a low percentage. Consider how VA loan rates today might compare to rates a few years in the future to choose the best loan for you.

Choosing the Best VA Loan Rates

Different types of loans will approach their VA interest rate differently. When considering different loan types it is important to keep in mind that one loan is not better than another. Each applicant’s finances are unique and one loan may suit them better depending on their circumstances and needs.

It is also important to consider how the VA loan interest rate today might compare to the future. This allows borrowers to make choices that will benefit them now and in the future.

VA Refinance Rates

VA home loans are not just for prospective buyers. VA loan holders can refinance their own VA loan interest rate today with an Interest Rate Reduction Refinance Loan, or IRRRL, through the VA. These VA refinance rates allow homeowners with adjustable mortgages the chance to refinance with a fixed rate, which can save borrowers a lot of money if their rate has risen significantly.

VA refinance rates also offers borrowers the opportunity to access a lower VA loan interest rate today if the market or their finances have changed since they finalized their previous VA loan.

Lenders are not required to perform an appraisal or credit check during the refinancing process, though they are permitted to institute their own standards in this regard. This means that VA refinance rates may vary between lenders. It is still a good idea to compare different offers to find the most competitive VA rates today.

To find the best VA rates today through refinancing options, it is important to carefully consider the current market, your own finances, and how you would like to affect your current mortgage. A qualified VA lender is a good resource to use and would be able to accurately estimate how the VA refinance rates might affect your current VA rates today or your loan terms or payments.

Read More: Best VA Loans Guide

Conclusion: Finding VA Interest Rates Today

Finding the best interest rate possible has the potential to help you save thousands of dollars over the lifetime of your mortgage. One of the best ways to find the best possible VA loan interest rate today is to compare a few different offers made by qualified, VA-approved lending professionals.

To help you find the best VA interest rates keep in mind:

  • Different kinds of VA loans treat interest differently
  • VA loans can be refinanced
  • A pre-approval can give you a realistic estimate of a lender’s rates
  • A qualified lender can help streamline the process

It is important to remember that no VA loan option is inherently better than another. Each option serves a different purpose and will be more or less beneficial for your needs based on your finances.

Perhaps you plan to relocate in just a few years, this might make an adjustable loan best for you. Perhaps one lender is able to offer you a better interest rate than another. To find the best VA interest rates for your new home, weigh the benefits and disadvantages of each loan against your own financial needs.

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Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

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