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VA home loan rates, guidelines, & loan limits (Updated for 2020)

Dan Green
The Mortgage Reports contributor

Current VA home loan rates

VA home loans were created to benefit current and former members of the U.S. Armed Forces.

VA loans require no down payment, no mortgage insurance, and come with access to lower mortgage rates than with other common loan types.

Over 20 million veterans have taken advantage of the program since its creation in 1944. Some 600,000 obtained a VA loan in 2018 alone. The VA home loan program is popular, and gaining steam.

For good reason, too.

VA mortgage rates today as much as 50 basis points (0.50%) lower than rates available for conventional mortgage loans; and mortgage insurance is never required with the VA program — regardless of your downpayment.

VA-eligible mortgage applicants save thousands in mortgage interest throughout their loan term.

Verify your new rate (Feb 16th, 2020)

Current mortgage rates for VA home loans

VA mortgage rates are among the lowest of all available mortgage rates. There are several reasons why.

The first reason why VA mortgage rates are low is because VA home loans are guaranteed against loss by the Department of Veterans Affairs.

Lenders assume very little risk on VA loans.

A second reason that mortgage rates are low for VA loans is that the program boasts some of the lowest default rates of any mortgage loan type. Lower default risk leads to lower future costs and rock-bottom rates.

A third reason is competition.

Lenders like to make VA loans for the two reasons above, and the competition for veterans’ business has created downward pressure on prices.

Comparison shop VA-approved lenders and you’ll see how low rates can be.

Rates for the VA streamline refinance are extremely competitive, for example, and the program has helped tens of thousands of military borrowers reduce their monthly payment.

Verify your new rate (Feb 16th, 2020)

No VA mortgage loan limits as of 2020

Among the benefits of a VA loan is that the program allows for “jumbo” loan sizes without charging its borrowers extra.

That’s a new rule as of January 1, 2020. 

In the past, VA borrowers had to make a down payment if their loan was above conventional limits. 

That means if you were a VA borrower purchasing a house that cost more than $510,400, you’d have to pay 25% down on the excess loan amount. 

But the rules for VA loan limits have changed.

Now, home buyers eligible for VA financing can get zero-down home loans with no limits.

So even in high-priced areas like Seattle, where the median home price is more than $700,000, VA borrowers can get financing without having to worry about a large down payment.

And that’s true nationwide.

Verify your eligibility for a zero-down VA loan here (Feb 16th, 2020)

What are today’s mortgage rates?

VA mortgage applicants aren’t required to give in-depth, in-person applications. Most applications can be handled online, or over the phone, with needing documentation on-hand.

Whether you’re buying or refinancing property, the VA loan process is smooth doesn’t require mountains of paperwork. It’s worth verifying your eligibility for this incredible program.

Verify your new rate (Feb 16th, 2020)