VA Loan Rates in March 2023
VA Loan Rates in March 2023

VA Loan Rates in March 2023

Make more-informed mortgage decisions with our calculators. Get quick estimates you can use now
Find mortgage rate by state

The first thing you need to know about VA loans is that they are fully backed by the federal government or, to be more specific, the Department of Veteran Affairs. Thus, the lenders have a luxurious relaxation of providing comparatively lower interest rates for VA loan rates. Veterans, service members, or their spouses can apply for VA mortgages at much lower rates than the conventional mortgage rates.

However, VA home loan rates are not specified by the Department of Veteran Affairs. They are set by the lender themself, based on the borrower's financial situation.

Today’s National VA Mortgage Rate Trends

VA loan rates today are ever-changing based on the market situations. There are several types of VA mortgages that come at separate interest trends. Currently, the 30-year Fixed VA Purchase is being charged a rate of 5.125% interest, the 15 Year VA loan rates are at 4.875%, and the 30-year IRRRL VA loan rates are at 5.625%.

VA loan interest rates change every day, and these interest rates mentioned above are only taken from the national average rates calculated by the current surveys. To enjoy the best market rates for VA home loans, it is important to do further research on various lenders.

Current Mortgage VA Loan Rates And Refinance Rates

Several factors create a considerable difference between current VA loan rates and VA Refinance Rates. These factors include the type of Refinance loan, the borrower’s credit score, the loan-to-value ratio, and many others.

The interest rate for 30-year Streamline (IRRRL) is 5.625%, with an APR of 5.795%. The 15-year Streamline (IRRRL) is at 5.500%, with an APR of 5.768%. The 30-year VA Cashout is 5.625%, while the APR is 5.957%. And the 15-year Cashout Refinance VA loan rates have a current interest rate of 5.500% with an APR of 6.041%.

What is a VA loan?

In the US, a VA loan is a mortgage available for active veterans, servicemen, and their surviving spouses, through a program organized by the federal government. VA loans have very generous terms, including zero down payment, no mortgage insurance, and extremely relaxed jumbo VA loan rates.

These mortgages can be availed through private lenders but are backed by the Department of Veteran Affairs. Veterans and their surviving spouses can enjoy easy home purchases with no prepayment penalties, and lenient veterans united VA loan rates with VA home loans.

Who Qualifies For A VA Loan?

Although VA loans have much more lenient credit terms and have a lot of relaxations than conventional mortgage systems, certain criteria have to be met. Though the federal government backs up all VA mortgages, the criteria for qualification and average VA loan interest rates are still set by private lenders, such as banks and mortgage companies. This is because the Department of Veteran Affairs does not provide any finances, so the lenders set the majority of the rules.

Not all who have served for some time in the Armed Forces are eligible for VA mortgages. To be part of this mortgage plan, one must fulfill at least one of the following criteria:

  • You’ve served 181 days of active service during peacetime.
  • You’ve served 90 consecutive days of active service during wartime.
  • You’ve served more than six years of service with the National Guard or Reserves or 90 days under Title 32, with at least 30 consecutive days.

VA loans are also applicable for spouses of ex-servicemen who have lost their lives in duty. However, the spouse shouldn’t be remarried, with a few exceptions.

Who Sets VA Loan Rates?

Most of the time, people are under the false assumption that since the federal government backs VA mortgages, they are responsible for setting the interest rates. However, in reality, the Department of Veteran Affairs has nothing to do with the interest rate on VA loans. Navy federal VA loan rates are set purely by private lenders, banks, or mortgage companies.

Best VA loan rates are set after evaluating various factors of the borrower. They depend on the borrower’s credit score, and a thorough evaluation of their financial situation is also made. However, you can get even lower interest rates by making an initial down payment since down payments are not a mandatory part of VA loans.

Pros And Cons of VA Loans

There are two sides to every coin. Just like that, VA loans also have a flip side for all their pros. Let us delve a little deeper into VA mortgages' various pros and cons.


  • One of the biggest pros of a VA loan is that no down payment is mandatory.
  • No PMI associated with the mortgage
  • There is no lower limit for credit score requirements
  • No upper limit to the loan amount, so you can borrow as much as required
  • You always have the possibility to opt for refinancing if the interest rates drop further
  • There are certain VA loan modifications available to help you out if you start to lag behind.


  • Since the down payment is not mandatory, it can result in a higher than normal pennymac VA loan rates
  • You have to deal with the added cost of a VA funding fee
  • Opting to finance the funding fee can consequently have you pay higher monthly payments, which can be a burden
  • Private lenders will always have their personal credit score requirements since they do all the financing
  • It is always a possibility that you could end up owing more than the house's net worth if you don't put any money down
  • Selling your home in the future can become cumbersome if you owe more than the house's worth.

Do VA home loans have better mortgage rates?

VA mortgages have a lot of alluring qualities that make them stand out from conventional home loans for veterans, servicemen, and their spouses. With no requirements of down payments, private mortgage insurance, or even marked credit scores, these loans can seem like a golden opportunity. VA mortgages have considerably flexible VA jumbo loan rates, as private lenders set them based on the borrower's financial situation.

You can also opt for refinancing options if the navy federal VA home loan rates fall further after your mortgage has been issued. VA loans also allow a higher debt-to-income ratio than that conventional loans.

What is a good VA mortgage rate?

To find the best VA loan rates just funded, you should dig around. VA home loan rates are not at all concrete. Several different loan options include 30-year fixed VA loans, 15-year Streamline (IRRRL), etc. And for each type of mortgage, the interest rates and APR keep changing.

The current average VA loan mortgage rate for a 30-year fixed VA loan is around 5.15%. But if you are interested in the long-term statistics, you should know that the 52-week high for a VA fixed mortgage rate was 5.15%, while the 52-week low was a meager 3.42%. Wells Fargo VA loan rates are decided by the private lenders and not by the federal government. Lenders usually set an interest rate depending on the financial situation and the borrower's credit scores, so depending on your current situation, the best penfed VA loan rates can vary.

How much does a VA loan cost?

One of the major flip sides of a VA mortgage is the additional costs incurred with it. Every VA loan requires a funding fee. Congress set this rule to make sure that the system keeps running smoothly, with a balanced flow of cash coming in and going out. This system protects the VA program from ever running out of resources for issuing new loans at low VA united home loan rates.

Depending on your lender, you might be charged extra closing fees; some even charge a 1% loan origination fee from their borrowers. You should go around talking to multiple mortgage agencies to pick the one that suits your best interests before finalizing the terms.

VA Loan Funding Fee

This fee is essentially a percentage of your entire mortgage. The funding fee amount depends on several factors, like whether this is your first time opting for a VA loan, how many times you have taken loans before, and the amount of your down payment. Funding fees usually range from 1.4% to 3.6% when purchasing loans.

There are two different ways of paying your VA funding fee. You can either pay it off at the closing time of the loan or choose to include it in your overall mortgage and pay it over a longer period on nbkc VA loan rates. To purchase a manufactured home, the borrower only has to pay a first-time-user funding fee.

How a VA loan compares to other mortgage rates?

When you have to choose between a VA mortgage and a conventional loan, the choice can be difficult. If you think simply, no down payments, no mortgage insurance, no credit scores, VA loans are an easy winner, but that is only superficial. If you compare the pros and cons of a VA home mortgage with other loans, you will find enough points of comparison to tilt the scale in favor of either.

You may still prefer a conventional loan if you consider investing in a second home, say a property investment. VA loans are only applicable for primary homes. But then there comes the ‘no down payments’ section. While other mortgage plans will still require you to put some money down on the property, they can go as low as 3%. It is worth noting that VA loans incur a funding fee not required for most other mortgages. And this fee, if not paid upfront during the closing, will add up to your entire mortgage and, in due time, hike the amount of money you pay along with interest.

What’s the difference between a VA interest rate and APR?

When it comes to VA mortgages, two terms are often used interchangeably. However, they are different. These are ‘Interest’ and ‘APR.’ APR stands for Annual Percentage Rate. If you don’t know what are VA loan rates, it means the percentage of money that you pay to your lender for a certain amount of loan. The lending party usually decides the interest rate in VA mortgages, and there are several relaxations available. But APR is a bit more concrete as it covers the interest rate and any additional expenses required to apply for a loan. It also covers prepaid interest, private mortgage insurance, etc.

If you look for the best interest rates on VA loans, you might find a hundred different interest rates from a hundred different lenders. Since this is completely dependent on the lender themself, it is possible to find great deals without any down payment. However, finding a low APR that suits you is not that easy; every lender has different requirements. But there are some ways by which you can lower the percentage, like paying at least a 20% down payment or by paying a Mortgage Insurance upfront.

Wrapping Up

The Department of Veteran Affairs has put a lot of thought into organizing schemes like that of the VA Home Mortgage program. This program is designed to help veterans, servicemen, and their surviving spouses to invest in a primary home for themselves. VA loans can be a viable source of mortgage for retired army personnel because of the number of perks associated with it. However, it is advised to do sufficient research before finalizing a deal that suits your best interest.

Lender Review

Show All Reviews

Frequently Asked Questions

  • Finding the lowest VA loan rates would require some serious market research. If you are not well connected with several leading mortgage companies, finding the most pocket-friendly interest rate can be difficult. VA loans are one of the most lenient mortgage programs available. Backed by the federal government, i.e., the Department of Veteran Affairs, this mortgage scheme offers several alluring perks for the borrower. If no down payment, no lower limit for credit scores, or no PMI wasn’t enough, you could still get a very handsome Rocket mortgage VA loan rates depending on your lender.

    The current 30-year VA loan rates are at around 5.625% on an average, but if you do some serious rummaging among lenders, it is possible to find one that’s ready to sink lower. Finding low APR is also possible if you are ready to let go of some VA loan perks like down payments and PMIs. The federal government has nothing to do with the setting of interest rates. It all comes down to your lender’s point of view.

  • If you did not know yet, the Department of Veteran Affairs, US, requires no credit scores to apply for a VA loan. Even though that might sound like a sweet deal, it may not always be the case. Ultimately it all comes down to your lender. Your mortgage agency has a right to issue a credit score of their choice. It is typically within the range of 580 to 660.

    Even though it is not a mandatory requirement, a good credit score makes a good impression on the lender. If you have a low credit score, meaning you have failed to commit to timely payments, it is not surprising that the lender will be reluctant to offer you a lower ncfu VA loan rates. So it is always a good plan to keep a high credit score, just in case.

  • One of the most frequent confusion veterans face while opting for VA loans is understanding the difference between VA purchase rates and VA loan refinance rates. Well, it is no rocket science once you break it down. VA purchase rates imply the interest rate you are closing your mortgage. This is the rate applied to your entire mortgage for all your payments in installments. The lender usually decides this rate based on your financial situation, credit scores, etc.

    On the other hand, refinance refers to when you trade your old mortgage for a new one. VA refinance is a scenario where you opt for a completely new loan with different USA VA home loan rates. This is usually done when the interest rate goes lower than the one you previously closed your mortgage on. VA refinancing can save you a lot of money in the long term.

  • As stated several times above, VA home loans, although backed up by the federal government of the US or the Department of Veteran Affairs, don’t play any role when it comes to determining the bank of America VA loan rates. The government does not financially aid VA loans. Rather all financing is done by private lenders.

    So it only makes sense that they are the ones that set the VA home loan interest rates as well. Usually, each lender has its loan interest rates. Depending on their unique financial situation, they also offer different rates for different borrowers. Credit scores can play a major role in determining USA VA loan rates.

  • To be fair, 2.25% can be considered a ridiculously low VA home loan rate, even when it comes to VA home loans. If at all possible, these mortgage rates go to the best borrowers with perfect credit scores and those who are willing to pay a 20% or above payment on their home loans.

    Paying for personal mortgage insurance can also help one earn low, quicken loans VA loan rates on their VA mortgage. So if you have managed to find a lender ready to offer you a mortgage rate of 2.25%, then do thorough research about the agency before moving forward and closing the deal.

  • VA mortgages certainly have much more relaxed VA small business loan rates than conventional mortgages on the same loan amount. The Department of Veteran Affairs has organized the VA mortgage program to help veterans, servicemen, and surviving spouses take advantage of the scheme to invest in a primary home.

    VA loans do not require a veteran to make mandatory down payments or pay upfront for any mortgage insurance. Here the lending party is the one that decides on the interest rate for the mortgage. They gauge several factors before fixing a rate, taking into account the credit scores of the borrower and their financial conditions.

  • Even though VA home loans are advertised to have much lower interest rates than conventional mortgage agencies, a few factors can hike up the interest. For example, borrowers with a low credit score might face discrimination from the lending party. A low score indicates an inconsistency in previous payments which is not a good impression.

    In such cases, the lender might increase the interest rate on your loan to protect their interests. Not paying the funding fee while closing the mortgage can also hike your periodic payments. This fee will then roll into your entire mortgage and can even double in an amount over the years.

  • VA refinance rates are always changing according to the market's financial situation. A good number of veterans opt for refinancing every year to save up in the long term. Currently, the refinance rates are at around 5.620%, but according to surveys, VA home loan rates 2023 are supposed to go up as the year progresses. The lowest VA refinance rates can go up to 3.87%, which is a margin that is hard to attain.