February 3, 2026
8 minutes
Wondering if all VA loan rates are created equal? Spoiler: they're not-and choosing the right one could save you thousands. In 2025, understanding how VA mortgage rates work isn’t just smart. It’s essential. This guide breaks down how to decode your rate, what influences it, and how to lock in the lowest number possible.
Key Takeaways
- VA loan rates are often lower than conventional mortgage rates, helping you save significantly over time.
- The VA does NOT have a minimum credit score requirement. Any number you're shown is a lender overlay. However, many lenders look for a 620+ score for better rate offers. VA Handbook 26-7, Chapter 4
- Federal Reserve policy influences VA rates. Tracking interest rate trends can help you decide when to lock.
Refinance options like the VA IRRRL (Interest Rate Reduction Refinance Loan) often offer streamlined paperwork and reduced rates.
How Often Do VA Mortgage Rates Change?
VA mortgage rates can shift daily, influenced by:
- Bond market movement
- Inflation trends
- Federal Reserve policy
Current VA Mortgage Rates (March 2025)
| Loan Type | Avg. Interest Rate | Avg. APR |
|---|---|---|
| 30-Year Fixed VA Loan | 5.25% | 5.48% |
| 15-Year Fixed VA Loan | 4.75% | 5.02% |
| VA IRRRL (Refinance) | 5.00% | 5.27% |
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5 Key Factors That Affect Your VA Loan Interest Rate
1. Your Credit Score
The VA does not set a minimum credit score. Lenders often require 620 or higher, but manual underwriting is available for lower scores in some cases.
Citation: VA Handbook 26-7, Chapter 4
Tip: Improving your credit score can drop your interest rate by up to 0.50% or more.
Understand your eligibility first: Learn the full VA loan eligibility rules so you know you qualify.
Need a VA certificate? This guide on the VA Certificate of Eligibility walks you through it.
2. Federal Reserve Rate Policy
Mortgage rates-including VA-are influenced by the Federal Reserve’s interest rate decisions. When the Fed raises rates, mortgage rates tend to follow.
Keep an eye on the Federal Reserve’s rate announcements.
3. Loan Term Length
- 15-Year VA Loans: Lower rates, higher payments.
- 30-Year VA Loans: Higher rates, lower payments.
If you can afford higher monthly payments, a shorter loan term can save you tens of thousands in interest.
4. Loan Type (Purchase vs. Refinance)
- Purchase Loans: Standard VA rates.
- VA IRRRL (Streamline Refinance): Often lower rates with no appraisal or income verification required.
Reference: VA IRRRL Guidelines - VA.gov
Explore rate details deeper: Dive into VA loan pros, cons, and options.
Ready to refinance? Check out our VA Streamline Refinance walkthrough.
5. Your Lender
Not all VA lenders offer the same rate-even for the same borrower profile.
Always compare rates from 3–5 VA-approved lenders or work with a VA mortgage broker who can shop for you.
VA Loans vs. Conventional Loans: Which Saves You More?
| Factor | VA Loan | Conventional Loan |
|---|---|---|
| Down Payment | 0% | 5–20% typically required |
| Credit Flexibility | More lenient | Stricter score requirements |
| Mortgage Insurance | None with VA | PMI usually required <20% down |
| Interest Rates | Typically lower | Higher for similar borrowers |
| Closing Costs | Limited by VA | No cap; often higher |
Note: VA limits certain closing costs that can be charged to the borrower. Learn more in VA Pamphlet 26-7, Chapter 8.
How to Lock In the Lowest VA Mortgage Rate (Step-by-Step)
1. Check Today’s Rates
Use trusted sites like:
- Bankrate
- Freddie Mac PMMS
- [Lender marketplaces]
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2. Get Pre-Qualified
Pre-qualification gives you an idea of what you can afford-and shows sellers you’re serious.
3. Work with a VA Mortgage Broker
Brokers can often find lower rates than direct lenders because they shop your profile across multiple sources.
Common VA Loan Rate Myths-Busted
Myth: All VA lenders offer the same rate. Truth: Each lender sets its own rates, fees, and credit score overlays.
Myth: VA loans are only for first-time buyers. Truth: You can use your VA entitlement multiple times-even after foreclosure.
Myth: You can’t refinance with a VA loan. Truth: The VA IRRRL and cash-out refinance options are both available.
FAQs
How does my credit score impact my VA loan percentage?
Most lenders prefer 620+, but higher scores can qualify you for significantly better rates.
Can I refinance my VA loan for a better rate?
Yes. Use the VA IRRRL to drop your rate with fewer docs and no appraisal.
Do VA loans have better rates than conventional loans?
Usually, yes. Expect 0.25% to 0.50% savings.
Is it worth it to use a VA mortgage broker?
Definitely. They shop across lenders to get you the best rate.
Want the lowest VA loan rate-and thousands back at closing?
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
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reAlpha Mortgage is not making a commitment to lend. All loans are subject to credit approval and underwriting review. Rates and terms may change based on market shifts and borrower qualifications.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.