Today’s VA Mortgage Rates

Today’s VA mortgage rates start at 2.25% (2.438% APR) for a 30-year fixed-rate loan. 

Average rates are based on a daily survey of our lender network. Your own VA loan rate will likely be higher or lower depending on factors like your credit score and down payment. 

Be sure to shop around and find the best VA mortgage rate available to you. 

Check your VA loan rates (Jun 20th, 2021)

VA mortgage rates for today, June 20, 2021

Program Mortgage Rate APR* Change
30 year fixed VA
30 year fixed VA 2.375% 2.547% Unchanged
15 year fixed VA
15 year fixed VA 2.25% 2.571% Unchanged
5 year ARM VA
5 year ARM VA 2.5% 2.392% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Check your VA loan rates (Jun 20th, 2021)

In this article (Skip to…)

What is a VA loan?

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs. However, you don’t go to the VA to get a VA mortgage. You apply for one with a bank, lender, or credit union, just like any other home loan.

The VA’s role is to insure these mortgages. This allows private lenders to offer ultra-low rates and lenient guidelines, knowing the VA will have their back if a homeowner defaults on the loan.

A VA loan is almost always the best type of mortgage you can get — if you can get one.

The catch is that these mortgage loans are limited to veterans, active-duty service members, and a few military-related groups.

If you’re not sure whether you’d qualify, check out this guide to VA loan eligibility.

Verify your VA home loan eligibility (Jun 20th, 2021)

VA home loan benefits

For eligible home buyers and homeowners, the VA mortgage offers a number of distinct perks. For example:

  1. No down payment is required; you can get 100% financing
  2. Minimum credit score requirements can be flexible
  3. Lowest mortgage rates of any loan product, on average
  4. No private mortgage insurance (PMI) required; just a one-time VA funding fee which you can roll into your loan amount
  5. No loan limits; the VA will insure any size mortgage, as long as the borrower can afford the monthly mortgage payments
  6. Loan costs are capped, so you may pay less in closing costs than with many other loans
  7. Prepayment penalties are banned, meaning you can refinance or pay off some or all your loan at any time with no fines
  8. Loans are “assumable,” meaning a future buyer can take over your loan and interest rate later on, potentially making the home easier to sell when you want to move

These loans are especially attractive for first-time home buyers, since you don’t need to worry about saving for a down payment. (Though you’ll still need cash to cover closing costs, unless a seller agrees to pay them for you.)

Although they’re backed by the federal government, VA loans are offered by private lenders. That means you’re free to shop around and compare mortgage companies to find the lowest rate.

Verify your new rate (Jun 20th, 2021)

How do VA mortgage rates compare?

VA loans typically come with the lowest mortgage rates of any major program. But how low is low?

The difference or “spread” between different types of mortgage rates changes every day. But you can usually expect VA rates to be around 0.25% lower than comparable FHA and conventional mortgage rates — and sometimes they’re even lower than that.  

Such differences might sound tiny. But when you’re borrowing a large sum for a long time, a 0.25% rate reduction can add up to tens of thousands of dollars over the lifetime of the loan.

And that lower rate can free up your monthly finances too. a 0.25% reduction in rate saves about $40 per month on a $300,000 loan.

Why are VA loan rates so low? Well, that guarantee from the federal government means VA loans are less risky than others. So lenders can afford to price them lower.

Compare today’s VA mortgage rates

Program Mortgage Rate APR* Change
Conventional 30 year fixed
Conventional 30 year fixed 2.936% 2.936% Unchanged
Conventional 15 year fixed
Conventional 15 year fixed 2.37% 2.37% Unchanged
Conventional 20 year fixed
Conventional 20 year fixed 2.75% 2.75% Unchanged
Conventional 10 year fixed
Conventional 10 year fixed 2.075% 2.112% Unchanged
30 year fixed FHA
30 year fixed FHA 2.806% 3.464% Unchanged
15 year fixed FHA
15 year fixed FHA 2.466% 3.067% -0.22%
5 year ARM FHA
5 year ARM FHA 2.5% 3.213% Unchanged
30 year fixed VA
30 year fixed VA 2.375% 2.547% Unchanged
15 year fixed VA
15 year fixed VA 2.25% 2.571% Unchanged
5 year ARM VA
5 year ARM VA 2.5% 2.392% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.
Check your VA mortgage rates (Jun 20th, 2021)

Types of VA loans

VA-eligible borrowers have a number of loan options. Depending on whether you’re buying a home or refinancing an existing loan, you can opt for a:

  • Fixed-rate mortgage with a 30- or 15-year loan term
  • Adjustable-rate mortgage with an extra-low introductory rate
  • A VA-to-VA refinance (IRRRL) with reduced paperwork
  • A VA cash-out refinance of up to 100% of the home’s value

You also have the option to buy a single-family home or a multifamily property with up to 4 units.

Just note that if you buy a multi-unit home, it still needs to be a ‘primary residence,’ meaning you must live in one of the units yourself while renting the others out. Rental homes and investment properties are not permitted under the VA loan program.

VA home loan eligibility

To be eligible for a VA home loan, you need to meet the Department of Veterans Affairs’ minimum service requirements. You also need to meet financial guidelines to qualify for the loan; and you need to be buying or refinancing an approved property.

Military service requirements

A short way to find out if you’re eligible for a VA loan is to ask the VA for a certificate of eligibility (COE). You can do this yourself through the VA’s online benefits portal. Or, if you’re not big on paperwork, most lenders will do this for you in just a few minutes.

You’re going to need a COE early on in the mortgage application process. So it’s worth getting that out of the way. But what are your chances that your COE will indicate that you’re eligible?

If you’re currently serving, you’ll need 90 days’ continuous active duty. If you’re a veteran, there are differing requirements that vary depending on whether you served during times of peace (often 181 days) or war (often 90 days).

Click on the pulldown menus on this VA webpage for details.

Note, there’s one set of requirements for veterans and service members, and another for National Guard and Reserve members.

There are also exceptions for those discharged owing to a service-related disability, hardship, early out, and certain other causes. Whatever your type of service, you’ll need an honorable discharge to qualify. Surviving spouses of those missing or killed in action can also apply.

Credit score and down payment

The VA doesn’t set a minimum credit score for its loans. But the lender from which you’re borrowing will have its own set of guidelines.

Most lenders look for a minimum FICO credit score in the 580-620 range, although some will ask for 640 or even 660.

If you look hard enough, you may find VA lenders that will approve mortgage applications with a 580 credit score — or maybe even lower. But you’re almost certain to have to pay a higher mortgage rate. And you’re more likely to get approved if you have a down payment or low existing debts.

Of course, you don’t need a down payment at all. But if you’re a borderline case (or you want the lowest rate possible), making one will help.

Debt-to-income ratio

Affordability is any lender’s top concern. And it will want to be sure you can comfortably afford your monthly mortgage payments on top of your other regular financial obligations.

Most of those will be debts, including auto loan payments and minimum credit card payments. But things like alimony and child support also count.

Your lender looks at all these ongoing debts — plus your future mortgage payment — and compares that number to your gross monthly income.

The mortgage industry calls this your “DTI” (debt-to-income ratio).

Just as with credit scores, the VA doesn’t specify a maximum DTI. But it does have some wider rules associated with disposable income. And lenders are entitled to impose their own requirements. So, if high debt is an issue for you, shop around for a mortgage company that specializes in helping people in your situation.

Verify your VA loan eligibility (Jun 20th, 2021)

How your interest rate is determined

We mentioned that VA loan rates are low because of the federal government’s guarantee. But, besides that, the VA plays no direct part in setting rates.

It’s all down to the private lenders from which you borrow. And rates vary significantly between those.

Don’t assume a lender who gave your pal a great deal will give you one, too. Lenders tend to specialize in borrowers with similar profiles. And yours may be different from your friend’s. Even the same lender can be more or less competitive depending on its changing business needs.

Mortgage rates also depend heavily on your personal finances, including things like:

  1. Credit score and credit history – Typically, the higher the score, the lower the mortgage rate
  2. Down payment – Of course, you don’t need a down payment for a VA loan. But if you can scrape one together, you should get a better deal
  3. Existing financial commitments – The more disposable income you have left over at the end of each month, the bigger the mortgage you can afford. This is your DTI (see above)
  4. Employment record – Lenders want to see that you have a regular, reliable income that’s likely to continue for at least 3 years. Without that, you may not be able to keep up your mortgage payments

You may be able to help yourself by improving some of those factors. For example, paying down credit card balances often boosts your credit score and lowers your monthly debts at the same time.

But if you want the best mortgage rate, you really should shop around with several lenders before choosing one.

Comparison shopping involves getting quotes from multiple mortgage companies and looking at those side by side to see which can offer the best deal for you personally.

Refinancing a VA mortgage

With some types of mortgages, the interest rate you pay when you refinance your loan is higher than the one you pay when you’re purchasing a home. But that doesn’t generally apply to VA loans.

When you refinance an existing VA loan — or refinance a different loan type into a VA loan — you can expect to see the same below-market rates as someone applying for a home purchase mortgage.

There are two main refinance options for VA-eligible borrowers:

  1. Interest Rate Reduction Refinance Loan (IRRRL) — With one of these, you reduce your interest rate and get a lower monthly payment. There’s minimal fuss, cost, and paperwork involved because these are “streamline” refinances with a speedier approval process. For more information, see: VA IRRRL rates and requirements
  2. Cash-out refinance — A VA cash-out refinance lets you tap some or all of your home equity while refinancing into a new loan, sometimes with a lower interest rate. The VA cash-out refi is the only program that lets you refinance 100% of your home’s value — and your current loan doesn’t need to be a VA loan to qualify. Keep in mind, though, that more and more lenders limit these loans to 90% of your home’s current appraised value, so you’ll need to shop for lenders that let you tap all of your equity. For more information, see: VA cash-out refinance: Guidelines and rates

Note that rates and deals for refinances vary between lenders — just like those for purchase mortgages.

Don’t refinance with your existing lender until you’re sure it’s offering the best loan possible. The only way you can be certain of that is by comparing offers from multiple lenders.

Check your VA refinance rates (Jun 20th, 2021)

VA mortgage rates FAQ

Who has the best VA home loan rates?

The lender with the ‘best mortgage rates’ varies every day — and from one borrower to the next. You need to get quotes from multiple lenders to find the one offering the best deal for you when you apply.

Does my credit score affect VA loan interest rates?

Your credit score will have a big impact on the interest rate you’re offered. Borrowers with a credit score above 720 typically get access to the lowest mortgage rates, while borrowers with a score below 580 will have trouble qualifying for a VA loan at all.

Does my down payment affect VA loan interest rates?

Yes. You don’t need a down payment for a VA loan, but you’ll likely get a lower mortgage rate if you can provide one. This saves you money both by lowering your interest rate and reducing the loan amount you’re paying interest on.

Are VA loan rates lower than other mortgages?

You bet. They’re consistently the lowest among all the major mortgage programs. If you’re eligible for a VA loan, it’s highly likely you’ll save a lot of money by getting one.

How can I find the lowest VA mortgage rate?

There’s no short cut to finding the lowest rate. You have to survey the market (probably online) and apply to multiple lenders. Then compare your quotes side by side. All mortgage quotes or “Loan Estimates” have the same format, so it’s easy to compare the rates and fees you’re offered on equal footing.  A minimum of 3 lenders is often recommended, but the more you compare, the better deal you’re likely to find

What’s better, a VA home loan or a conventional loan?

A VA loan is almost always the better choice if you’re eligible. That’s especially true for home buyers putting down less than 20%, since conventional loans will charge private mortgage insurance (PMI) which can steeply increase monthly payments and the overall cost of the loan. By comparison, VA loans have a one-time funding fee but no ongoing mortgage insurance costs.

What’s better, a VA loan or an FHA loan?

Again, if you’re eligible, a VA loan is typically a better choice than an FHA loan. Not only are you likely to get a lower rate, but you won’t have to pay mortgage insurance every month. The only added cost is a one-time VA funding fee which can be rolled into your loan amount. However, the VA funding fee isn’t much more than the FHA upfront fee. VA requires 2.3% of the loan amount in most cases, and FHA requires 1.75% upfront. But you save potentially hundreds of dollars per month in mortgage insurance by going with VA, so the extra amount upfront is well worth it.

Should I refinance my VA mortgage?

It’s typically worth refinancing your mortgage if you’ll save more money in the long run than you spend upfront in closing costs. With a VA loan, the decision to refinance may be easier for two reasons: first, because VA mortgage rates are lower than other loans. Second, because you may have access to the VA IRRRL refinance, which lets you skip the home appraisal and much of the usual documentation.

If you think a VA refinance is worth it for you, check current rates to see how much you could save month-to-month and in the long run.

Verify your new rate (Jun 20th, 2021)