VA Mortgage Rates

Turbo Takeaways

One major benefit for military veterans and their families is access to better mortgage rates when purchasing a home. VA mortgage rates are often lower than many civilian loans, thanks to backing from the Department of Veterans Affairs (VA)

Military veterans are encouraged to apply for a VA loan when purchasing a home, saving thousands of dollars on interest fees, closing costs, and private mortgage insurance. This article explores the benefits of VA mortgage rates, how VA loans work, and looks at trends in VA loan interest rates.

What’s Different About VA Mortgage Rates?

Mortgage rates refer to the interest charged on the total amount of the loan used to purchase a home. VA mortgage rates are usually much lower than traditional prime mortgage rates. This is an effect of the VA backing a portion of your loan, making your transaction less risky for private lenders.

While VA mortgage rates fluctuate based on the current interest rate. They typically average between 0.25% to 0.50% lower than conventional rates, though exact differences vary. Before deciding on a loan, check with lenders to determine the current VA mortgage rate.

Here’s a look at how VA loan rates compare to conventional mortgage rates:

*Rates reflect the time of publication (April 07, 2025) and may vary by lender

How Do VA Mortgage Rates Save You Money?

VA loans offer lower interest rates, helping you save on monthly payments. Lower rates also mean you’ll pay less over the life of the loan because more of your payments go directly toward the principal.

Most VA loans also don’t require a down payment, reducing your upfront costs. Many borrowers struggle to save for a down payment and may even take on additional debt to cover it. With a VA loan, that’s one less expense to worry about.

Skipping private mortgage insurance (PMI) is another way VA loans help you save. Conventional loans often require PMI, adding to your monthly costs. VA loans don’t have this requirement, which helps keep your payments lower from the start.

Trends in VA Mortgage Rates

VA mortgage rates have shown a downward trend, aligning with broader market movements. As of April 2025, the average 30-year fixed VA mortgage rate stands at approximately 6.18%, reflecting a slight decrease from the previous month.

In 2023, Texas and Florida led the nation in VA loan originations. Texas accounted for over 43,000 loans, representing more than 10% of all VA loans that year, with 98% being purchase loans. Florida followed closely, being the only other state with more than 40,000 VA loan recipients in 2023.

The rising interest rates in 2023 led to a significant decline in VA loan refinancing. The total number of VA loans decreased by 46% between 2022 and 2023, primarily due to a sharp drop in refinance loans. 

These trends highlight the importance for veterans and active-duty service members to stay informed about current mortgage rates and market conditions when considering home purchases or refinancing.

What Is a VA Loan?

A Veterans Affairs (VA) loan is a government-backed mortgage loan available for servicemembers, veterans, and their surviving spouses. While many of these loans are offered through VA-approved lenders, the funds come from private, not government organizations.  Traditional banks, credit unions, and private mortgage lenders offer VA loans.

The VA loan program began in 1944 as part of the GI Bill of Rights. A VA loan is a lifetime benefit, so you can use it multiple times for various mortgages. Here are more key benefits of using a VA loan:

• Lower interest rates: Since the VA backs your loan, lenders give you better rates.
• No money down: Unlike other mortgages, VA loans don’t require a down payment. 
• Limited costs and fees: VA loans have limited closing costs, and certain fees associated with purchasing a home are waived. 
• Exempt from PMI: Taking out a VA loan means you don’t need private mortgage insurance (PMI), which lenders usually require if you don’t put at least 20% down.
• Effective for different properties: A VA loan allows you to purchase multiple property types, including single-family homes, condos, and new construction. 
• Compatible with low credit: VA loan vendors are often willing to provide funds for individuals with lower credit scores.

How Do You Secure a VA Loan?

To secure a VA loan, you must prove your service record and receive a Certificate of Eligibility (COE) from the Department of Veterans Affairs. Veterans with the following time and character of service requirements are eligible for a COE:

• Active duty service members
• Veterans 
• National Guard or Reserves
• Surviving spouses (who fulfill specific requirements)

Typical eligibility requirements include the following types of service:

• 90 consecutive days of active duty in wartime
• 181 consecutive days on active duty in peacetime
• 6 years in the National Guard or Reserve or 90 days under Title 32 orders with 30 consecutive days served

Once you meet all requirements, the VA issues you a Certificate of Eligibility. You’ll use this to pursue lenders and shop for the best VA mortgage rates.

When you apply for a VA loan, lenders are flexible about credit, but they do look at your monthly income and debt-to-income ratio to ensure you have sufficient funds to repay the money. Working with a lender to get pre-approved for your mortgage simplifies the application process because you’ll submit information about your income, debts, and assets.

VA Loan Limits

Caps on VA loan limits have changed over the years to reflect rising home prices. In most cases, veterans with full VA loan entitlement aren’t subject to loan limits at all. But if you’ve already used part of your entitlement and didn’t restore it, loan limits will apply based on where you’re buying.

For 2025, the standard VA loan limit is $806,500 in most counties. In high-cost areas, the limit increases to $1,209,750. Veterans typically have no VA loan limit if any of the following apply:

• You’ve never used your VA loan benefit
• You’ve fully repaid a previous VA loan and sold the property
• You lost a home to foreclosure but repaid the VA in full

Even with a loan limit, you can still buy a home that exceeds it if you’re able to make a down payment to cover the difference. Just remember — VA loans are for primary residences only, so you can’t use one to buy a rental or vacation property.

Which VA Loan Is Right for You?

Multiple types of loans offer low VA mortgage rates and assist vets in purchasing, improving, or refinancing a home. Here’s a look at the different VA loans available:

Purchase Loan

A purchase loan allows you to buy an existing house or newly constructed home with no down payment. Veterans can also use this loan to buy a condo, duplex, or manufactured home.

Cash-Out Refinance

Vets can use this loan to refinance up to 90% of their home’s value or cash out of their home’s equity. Cash-out refinance loans can be used by vets without a current VA loan.

Interest Rate Reduction Refinance Loan

An interest rate reduction refinance loan (IRRL) simplifies the refinancing process and, in many cases, may not require you to verify your income or get an appraisal. To qualify for an IRRL, you’ll need a current VA loan.

Refinancing through an IRRL also requires you to find a rate lower than your existing one and may come with time restrictions that determine the length of the new loan.

Native American Direct Loan (NADL)

Veterans or spouses of veterans who are Native American qualify for a specific VA loan used to buy or improve a home on federal trust lands. You can also use an NADL to refinance an existing Native American Direct Loan.

Overcome Debt Before You Get a VA Mortgage

It’s a good idea to get your debt under control before you apply for a VA loan. Saving money through low VA mortgage rates is an effective way to restart your finances after ending large debt balances.

With TurboDebt, you can become debt-free in as little as 12 months using our customized debt repayment plans. We’ll work with you to set up an affordable monthly payment so you don’t have to take out another loan or declare bankruptcy.

Break free from debt and put more money toward home payments at lower VA mortgage rates! Contact us today to learn how we can help you get out of debt and prepare to buy your dream home.