VA home loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA). They are available to eligible current or former members of the military and surviving spouses. Compared to other types of loans, VA mortgages are especially accessible since they don’t require a down payment or mortgage insurance. Other low-down payment loans typically require mortgage insurance if the borrower puts down less than 20 percent. VA loans do, however, require you to pay a funding fee. This cost can be paid upfront at closing or folded into the loan (which means you’ll pay interest on it).

How much does a VA loan cost?

If you’re borrowing using a VA loan, there will be other costs in addition to interest you pay on the mortgage. The first is the VA funding fee, which varies based on the size of your down payment, how much you borrow and your current status, as well as whether this is your first time borrowing a VA loan. There are also closing costs for a VA loan, which can include the price of a credit check, a VA appraisal fee and title insurance, among other expenses.

Are VA refinance rates different from VA purchase rates?

There isn’t much variation in VA loan refinance rates compared to the VA loan rate on a home purchase, according to Bankrate data as of December 2023. However, VA loan APRs (annual percentage rates), which account for the interest rate plus the lender’s fees and points, often differ. That’s because APR fees can be less expensive on a refinance and, if you do a VA streamline refinance, you won’t pay for additional costs like an appraisal.

Should I lock in my VA mortgage rate?

With a rate lock, you’ll freeze the rate on your mortgage so it won’t change. The lock guarantees (with some exceptions) that your desired rate will remain available for a specific period of time, so you won’t be affected if rates climb between submitting an offer and closing on the loan. Most rate locks are between 30 days and 60 days, although you might be able to obtain a lock of 90 days, 120 days or longer. Bear in mind that longer rate locks tend to come with a fee. Of course, locking a rate comes with risk. If you lock too early, you might miss out on the opportunity for a better rate prior to completing the purchase. On the other hand, you might want to secure a lower rate if rates are trending up.

Compare Current VA Loan Rates Today

Weekly national VA mortgage interest rate trends

Current mortgage rates

30 year fixed VA

6.77%

Today's national VA mortgage interest rate trends

For today, Tuesday, December 24, 2024, the national average 30-year VA mortgage interest rate is 7.04%, up compared to last week’s of 6.82%. The national average 30-year VA refinance interest rate is 7.62%, up compared to last week’s rate of 7.53%.

While these rate averages regularly fluctuate, they can help you identify changes in the market. The specific rate you’re offered depends on a number of factors, including your individual credit and finances.

Current VA loan interest rates

VA loan rates tend to be slightly lower than rates for other mortgage types, but not always. Today’s VA rates reflect the Federal Reserve’s pivot to a cutting cycle after a stretch of higher rates that began in 2022. The Fed is expected to reduce rates further in 2025, which could help further lower mortgage rates, including on VA loans.

The interest rate on a VA mortgage depends on many variables, including:
- Credit score: Unlike other mortgage products, the VA doesn’t require a minimum credit score to qualify for a VA loan — but the lender you borrow from might. Many VA lenders look for a score of at least 620.
- Loan term: Shorter-term loans typically have lower interest rates, which reduces your overall cost, but your monthly payments will be higher. By contrast, longer-term loans have higher rates, but lower monthly payments.
- Current market conditions: Broad economic trends, such as inflation, also impact mortgage rates.
- Lender: The lender you work with sets its own rate based on profit margin and other factors.

VA loan eligibility requirements

To be eligible for a VA loan:

You’re currently on active military duty or a veteran who was honorably discharged and met the minimum service requirements;
You served at least 90 consecutive active days during wartime or at least 181 consecutive days of active service during peacetime; or
You served for more than six years in the National Guard or Selective Reserve.

In addition, if your spouse died in the line of duty, you might qualify for a VA loan.If you meet these requirements, you’ll next need to obtain your certificate of eligibility (COE). You can request this online, by mail or through your VA mortgage lender.

Benefits of VA loans for service members

VA loans help eligible members of the armed forces more easily buy, build or renovate homes. Benefits include:

No down payment
No mortgage insurance
Low credit score requirements
Mortgage rates that are lower than other loan types

VA loans vs. conventional loans

Both a VA loan and a conventional loan provide home financing. VA loans don’t require a down payment; conventional loans require at least 3 percent down. With a conventional loan, however, you can buy a primary residence (the home you’ll live in), an investment property or a vacation home. The same doesn’t apply to VA loans, which can only be used to finance primary residences.

Here’s an example of the costs associated with a VA loan versus a 30-year fixed loan. Keep in mind interest rates are dependent on the market and the borrower's creditworthiness.

	30-year fixed VA loan	30-year fixed conventional loan
Home price	$400,000	$400,000
Down payment	0%	0%
Loan amount	$400,000	$380,000
Interest rate	6.25%	6.21%
Monthly mortgage payment (principal and interest)	$2,340	$2,330
Monthly mortgage insurance payment	0%	$2,330
Total monthly mortgage payment (includes principal, interest and mortgage insurance)	$2,340	$2,450
Total interest over life of loan	$462,301	$458,745
Total mortgage insurance over life of loan	$0	$15,884
Total over life of loan (includes principal, interest and mortgage insurance)	$842,301	$854,629

Note: These mortgage interest rates are as of Sept. 20, 2024. The figures do not include the VA funding fee, homeowners insurance, property taxes or other costs that might be included with your monthly mortgage payment.

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

For Bankrate’s overnight averages, APRs and rates are based on no existing relationship or automatic payments. To determine the Bankrate Monitor mortgage rate averages, Bankrate collects APRs and rates from the 10 largest banks and thrifts in 10 large U.S. markets based on no existing relationship or automatic payments.

Our advertisers are leaders in the marketplace, and they compensate us in exchange for placement of their products or services when you click on certain links posted on our site. This allows us to bring you, at no charge, quality content, competitive rates and useful tools.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.

If you qualify for both a conventional and VA loan, which should you choose?

Phil Crescenzo Jr.

Vice President, Southeast Division, Nation One Mortgage Corporation

The variables of each loan are everything in this equation. The benefits of a VA mortgage loan are significant in many ways, especially allowing 100-percent financing without PMI, whereas a conventional mortgage would require a 20 percent down payment to eliminate PMI. In the scenario where a veteran does want to put 20 percent down, the funding fees associated with VA loans can be costly. If a veteran has a service-connected disability, the funding fee is waived and the veteran is exempt. In those cases, credit score would play a major factor in this decision. Overall, VA loans will be much more flexible on credit scores and have fewer costs associated with credit when compared to a conventional loan.

How to get the best VA loan rate

When comparing VA loans to other types of mortgages, you might notice that some VA loan offers come with lower rates. Still, it’s important to put your credit and finances in the best possible position for the most attractive rates. Here are some tips:

Check your credit score. While VA lenders aren’t as strict as other types of lenders, a score above 620 gives you the most options.
Shop around. While all VA loans are backed by the VA, individual lenders offer mortgages. Rates can vary by half a point or more from one lender to the next.
Check out lender reviews. Some VA lenders have stellar reputations for customer service — but others not so much. You can learn more about individual lenders on Bankrate's review hub.

Learn more: How to get a VA loan

VA loan FAQ

VA home loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA). They are available to eligible current or former members of the military and surviving spouses.

Compared to other types of loans, VA mortgages are especially accessible since they don’t require a down payment or mortgage insurance. Other low-down payment loans typically require mortgage insurance if the borrower puts down less than 20 percent.

VA loans do, however, require you to pay a funding fee. This cost can be paid upfront at closing or folded into the loan (which means you’ll pay interest on it).
If you’re borrowing using a VA loan, there will be other costs in addition to interest you pay on the mortgage. The first is the VA funding fee, which varies based on the size of your down payment, how much you borrow and your current status, as well as whether this is your first time borrowing a VA loan. There are also closing costs for a VA loan, which can include the price of a credit check, a VA appraisal fee and title insurance, among other expenses.
There isn’t much variation in VA loan refinance rates compared to the VA loan rate on a home purchase, according to Bankrate data as of December 2023. However, VA loan APRs (annual percentage rates), which account for the interest rate plus the lender’s fees and points, often differ. That’s because APR fees can be less expensive on a refinance and, if you do a VA streamline refinance, you won’t pay for additional costs like an appraisal.
With a rate lock, you’ll freeze the rate on your mortgage so it won’t change. The lock guarantees (with some exceptions) that your desired rate will remain available for a specific period of time, so you won’t be affected if rates climb between submitting an offer and closing on the loan. Most rate locks are between 30 days and 60 days, although you might be able to obtain a lock of 90 days, 120 days or longer. Bear in mind that longer rate locks tend to come with a fee. Of course, locking a rate comes with risk. If you lock too early, you might miss out on the opportunity for a better rate prior to completing the purchase. On the other hand, you might want to secure a lower rate if rates are trending up.

Additional VA loan resources

VA loan guides: Everything you need to know about VA loans, all in one place
Best VA loan lenders: Bankrate’s top picks when shopping for a VA loan
VA loan calculator: Estimate your monthly payments, interest and more

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Compare current VA loan rates