VA Mortgage Rates 2026: How to Get the Best VA Loan Rate

Current VA mortgage rates: the short answer

VA mortgage rates are usually lower than comparable conventional mortgage rates because the U.S. Department of Veterans Affairs guarantees part of the loan for the lender. That guaranty lowers lender risk, which can translate into better pricing for eligible veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses.

Last verified: June 2026. Freddie Mac's latest weekly survey showed the average 30-year fixed conventional mortgage rate at 6.47% as of June 18, 2026. VA rates are not set by the VA and change daily, but strong VA borrowers often see offers below similar conventional quotes.

That does not mean every VA loan is automatically cheap. Your rate still depends on your credit profile, debt-to-income ratio, loan term, discount points, lender margins, property type, and whether you roll the VA funding fee into the loan.

If you are shopping today, start with a broad mortgage lender comparison, then request Loan Estimates from at least three VA-approved lenders for the same loan amount, term, and points. That is the only clean way to compare real offers.

What is a VA loan?

A VA loan is a mortgage made by a private lender and backed by the Department of Veterans Affairs. The VA does not lend the money on most VA-backed loans. Banks, credit unions, mortgage companies, and online lenders do.

The VA guaranty is the reason the product is different from a standard mortgage. If the borrower defaults, the VA agrees to reimburse the lender for a portion of the loss. In practice, that support can make lenders more willing to approve $0-down financing and offer competitive VA home loan rates.

The biggest benefits are straightforward:

The trade-off is also real. Most borrowers pay a one-time VA funding fee unless they qualify for an exemption. You may pay it at closing or roll it into the loan, but financing the fee means paying interest on it for as long as you keep the mortgage.

Why VA loan rates can be lower

VA loan rates can be lower because the lender is not taking the same level of loss risk as it would on a fully private mortgage. The VA guaranty does not protect you from foreclosure, but it does protect the lender enough to support better terms for qualified borrowers.

That is why you will often see VA loan rates quoted slightly below conventional rates for similar 30-year fixed loans. The difference is not guaranteed. Some weeks it may be small. Some lenders may price VA loans aggressively, while others may not.

The VA also does not set your rate. VA.gov is clear that lenders determine the interest rate, discount points, and many closing costs. So if one lender gives you a weak quote, that is not the VA program speaking. It is one lender's pricing.

This is where shopping matters. A difference of 0.25 percentage point on a 30-year mortgage can add up to thousands of dollars over time. A difference in points or lender fees can do the same.

Who qualifies for a VA loan and COE

To use a VA-backed loan, you first need to qualify for a Certificate of Eligibility, usually called a COE. The COE tells the lender that your service history or survivor status may qualify you for the VA home loan benefit.

In broad terms, eligibility can apply to active-duty service members, veterans, National Guard members, Reserve members, and certain surviving spouses. The exact service requirement depends on when and how you served. For example, current service members can generally meet the active-duty requirement after 90 continuous days, while many Guard and Reserve paths use 90 days of qualifying active-duty service or 6 creditable years.

The COE is not the same thing as loan approval. You still need to meet the lender's credit, income, debt, occupancy, and property requirements. VA.gov also notes that the VA does not require a minimum credit score, but many lenders set their own minimums.

If you are early in the process, get pre-approval and ask the lender to pull your COE electronically. You can also request it yourself through VA.gov. A COE should come before serious house hunting, not after you already love a property.

VA funding fee: the cost many borrowers miss

The VA funding fee is a one-time charge that helps support the VA home loan program. It is not monthly PMI, and it is not a lender junk fee. It goes to the VA.

For purchase and construction loans, the fee depends on three things: your loan amount, whether this is your first or subsequent use of the VA benefit, and your down payment. Current VA funding fee rates have been effective since April 7, 2023.

Many borrowers are exempt. You generally do not pay the funding fee if you receive VA compensation for a service-connected disability, are eligible for that compensation but receive retirement or active-duty pay instead, receive Dependency and Indemnity Compensation as a surviving spouse, have an eligible pre-discharge rating, or are an active-duty Purple Heart recipient who provides evidence before closing.

If you are not exempt, look at the funding fee before you celebrate a lower rate. Rolling a 2.15% fee into a 30-year loan may still be worth it, but it increases your principal from day one.

No down payment and no PMI: the real monthly impact

The two most powerful VA loan benefits are $0 down and no monthly PMI. Together, they can make homeownership possible sooner for eligible borrowers who have stable income but do not want to spend years saving a 20% down payment.

On a conventional mortgage, putting less than 20% down usually means paying private mortgage insurance. PMI protects the lender, not you. It can add a meaningful monthly cost until you reach enough equity to remove it.

With a VA loan, you can often finance 100% of the purchase price if you have full entitlement and the home appraises. That is a major advantage, especially in expensive housing markets where saving $20,000 to $80,000 for a down payment can take years.

The trade-off is that financing 100% means starting with a larger balance. If you roll the funding fee into the loan, the balance rises again. That is why VA is not automatically the cheapest path in every case, even when the rate looks better.

For a deeper affordability check, compare your estimated payment against your income with our mortgage-to-income guide before you lock a rate.

VA loan vs conventional loan: sample payment comparison

Here is a simple example to show why the answer is not just rate shopping. Assume a $400,000 purchase price, a 30-year fixed mortgage, and no taxes or homeowners insurance included.

For the VA option, assume $0 down, a 6.25% interest rate, and a first-use funding fee of 2.15% rolled into the loan. That makes the financed balance $408,600. The estimated principal and interest payment is about $2,516 per month.

For the conventional option, assume 5% down, a 6.60% interest rate, and a $380,000 loan. The estimated principal and interest payment is about $2,427 per month. Add a rough PMI estimate of $158 per month, and the payment moves to about $2,585 before taxes and insurance.

In this example, the VA loan needs less cash upfront and avoids PMI. The conventional loan has a smaller starting balance but requires $20,000 down and still carries PMI because the down payment is below 20%.

Change the rate, down payment, funding fee exemption, PMI cost, or discount points, and the winner can change. That is why you should compare full Loan Estimates, not just the rate printed at the top of an ad.

What affects the VA mortgage rate you are offered?

VA mortgage rates today are not one fixed number. Two eligible borrowers can apply on the same day and receive different quotes from the same lender.

The main drivers are:

This is also why APR matters. APR attempts to show the broader yearly cost of credit, including certain fees. It is not perfect, but it helps you compare two offers with different rates and fees.

VA refinance rates: IRRRL vs cash-out refinance

VA refinance rates depend on the type of refinance. There are two main paths.

An Interest Rate Reduction Refinance Loan, usually called an IRRRL or VA streamline refinance, is for borrowers who already have a VA-backed home loan. It can help lower the monthly payment or move from an adjustable rate to a fixed rate. The VA funding fee for an IRRRL is 0.50%.

A VA cash-out refinance is broader. You can use it to replace your current mortgage with a new VA-backed loan and, if you have enough equity, take cash out. You can also use it to refinance a non-VA loan into a VA-backed loan. The current funding fee is 2.15% for first use and 3.30% after first use.

Do not refinance just because the new rate is lower. Closing costs can run into the thousands. Divide the total refinance costs by your expected monthly savings to find the break-even point. If you expect to sell or refinance again before that month arrives, the lower rate may not save you money.

If your decision is really between cash-out refinance and another equity product, compare it against our cash-out refinance vs HELOC guide. A lower mortgage rate is useful, but replacing your entire first mortgage to access cash is a big decision.

How to get the best VA mortgage rates

The best VA mortgage rates usually go to borrowers who combine eligibility with clean documentation and real lender competition.

Start with your COE, income documents, bank statements, and a realistic home price. Then ask each lender for the same scenario: same purchase price, same down payment, same credit assumptions, same rate-lock period, same points, and same closing date.

When the Loan Estimates arrive, compare page 1 for rate, APR, monthly principal and interest, and whether the rate is locked. Then compare page 2 for origination charges, points, lender credits, and closing costs. If a lender is offering a lower rate by charging higher points, calculate the break-even period before choosing it.

Practical moves that can improve your offer:

Finally, remember that VA loans are not the only government-backed mortgage. If you are not eligible for VA, or if you are comparing low-down-payment options, our FHA loan guide is the next place to look.