VA Mortgage (2026): Rates, Rules & Approval Path

Your Military Service Earned You More-Now It's Time to Cash In. From no down payment to zero PMI and lower interest rates, VA loans are a financial power move. But in 2025, picking the right VA loan type could mean the difference between saving a little-and saving a lot. In this guide, we’ll break down your smartest options, answer real veteran questions, and help you buy with confidence.

A VA mortgage is a zero-down home loan backed by the U.S. Department of Veterans Affairs. Designed for veterans, active-duty service members, and eligible surviving spouses, VA loans offer:

• $0 Down – No need to drain your savings.
• No PMI – Save hundreds/month vs FHA or conventional.
• Competitive Rates – Typically 0.5%-1% lower.
• Flexible Credit Guidelines – Approval possible even with mid-600s scores.

You may qualify if you:

• Served 90 days in wartime or 181 in peacetime
• Completed 6 years in the Reserves/National Guard
• Are the unremarried spouse of a qualifying veteran

Get your Certificate of Eligibility (COE)

Get Pre-Qualified and Save Up to 1.5% at Closing with reAlpha

Save up to 1.5% at closing when you combine real estate and mortgage services with reAlpha.

Check If You Qualify

1. Shop Multiple Lenders: Don’t settle for the first offer. Rates, fees, and VA knowledge vary. 2. Boost Your Credit: Even a 20-point jump can save thousands. 3. Act Strategically: Rates are volatile. Lock in when favorable. 4. Use VA-Savvy Platforms: Some commission-free platforms like reAlpha help you save more.

A VA mortgage loan is a government-backed home loan available to qualifying military personnel, veterans, and some surviving spouses. The VA doesn’t lend money itself (except in rare direct-loan cases); instead, it guarantees a portion of your loan through approved lenders. This lowers the lender’s risk, translating to friendlier terms for you.

Key Benefits:

• $0 Down Payment: In most cases, you can finance 100% of the home price.
• No PMI: Unlike conventional or FHA loans that often require mortgage insurance, VA loans skip this extra cost.
• Competitive Interest Rates: Generally 0.5% to 1% lower than conventional, saving you thousands over the life of the loan.
• Flexible Credit Requirements: The VA itself has no strict FICO minimum; many lenders aim for 620+, but you may find lenders accepting lower scores if you have strong compensating factors.
• Reference: VA Pamphlet 26-7, Chapter 4

To secure a VA mortgage, you’ll need to meet service eligibility. According to VA Pamphlet 26-7, Chapter 2, typically you must:

1. Serve 90 consecutive days of active duty during wartime,
2. 181 days during peacetime, or Six years in the National Guard/Reserves,
3. OR be an unremarried surviving spouse of a service member who died in the line of duty or from service-connected causes.

Active-Duty Tip: If you’re on active duty, you need a Statement of Service from your command. This letter verifies your rank, start date, and (if applicable) your expected separation date.

1. No Down Payment Especially helpful if you’d rather keep your savings for renovations, emergencies, or investment.
2. No PMI This can save you a chunk of change every single month compared to FHA or conventional loans with less than 20% down.
3. Competitive Rates Typically 0.5%–1% lower than conventional rates, depending on your credit profile and the lender.
• Example: If a conventional rate is 6.0% APR, a VA rate might be closer to 5.0%–5.5% APR.
4. Flexible Credit Requirements The VA isn’t fixated on a single “must-have FICO.” Lenders do have overlays, but if one says no at 610, another might say yes, especially if your recent payment history is strong.
5. Foreclosure Prevention The VA has built-in assistance programs. If you run into financial trouble, they may help you avoid foreclosure.

Heads Up: Closing costs exist, even with zero down. They might include appraisal fees, title fees, and the VA funding fee, unless you’re exempt. Consider requesting seller concessions or using lender credits to reduce your out-of-pocket.

As of 2025, VA mortgage rates are still tracking roughly 0.5%–1% below conventional options-though actual APR varies.

• Credit Score: While a higher score can snag a better rate, the VA emphasizes overall credit history and residual income.
• Loan Amount: Jumbo VA loans might carry slightly different rates or guidelines.
• Fixed vs. ARM: A fixed-rate mortgage gives stable monthly payments, while ARMs offer a lower initial rate that can adjust later.
• Market Conditions: Economic shifts and Federal Reserve actions can push rates up or down. Monitor daily updates from reputable lenders or broker sites.

• Who It’s For: Buyers planning to stay put long term, who value predictability.
• How It Works: Interest rate stays the same for the entire loan term. Monthly payments won’t change (barring tax/insurance adjustments).

• Who It’s For: If you anticipate moving or refinancing within a few years, you could benefit from a lower initial rate.
• How It Works: Rate is fixed for a set period (e.g., 3 or 5 years), then can adjust annually.

• Who It’s For: Homebuyers purchasing above the conforming loan limits (currently $726,200 in most counties, though it may adjust in future years).
• How It Works: You can still potentially do no down payment or a reduced down payment compared to a conventional jumbo loan.

• Who It’s For: Homeowners needing funds for debt consolidation, home improvements, or emergencies.
• How It Works: You replace your current mortgage with a larger VA loan, pocketing the difference in cash. Requires a new appraisal and a full credit review.

• Who It’s For: Veterans looking to lower their rate or monthly payment on an existing VA loan.
• How It Works: Often no income verification or appraisal. A straightforward process if you’re simply aiming for a better rate.

Pro Tip: VA loans are assumable, meaning another qualified individual can take over your existing VA loan-possibly scoring your lower rate. This could be a huge selling point if you list your home in a higher-rate market.

Veterans Can Save Up to 1.5% at Closing with reAlpha

Save up to 1.5% on your purchase price by using reAlpha Realty and Mortgage together.

Unlock Savings

1. Boost Your Credit Score (If Possible) Even a small jump from 610 to 640 might shave off a fraction of a percent.
2. Compare Multiple Lenders Rates, fees, and service vary widely. Don’t settle for the first quote.
3. Consider a Fixed-Rate Loan If you’re staying in the home for a while, a fixed might save money long-term if rates rise.
4. Act Timely Rates can shift daily with market news or Federal Reserve signals.

• Commission Savings: Some veterans pocket extra cash by working with a commission-free real estate platform in certain transactions (like reAlpha), or by negotiating with their agent.
• VA-Savvy Lenders: Whether you choose a local lender or work with reAlpha Mortgage, make sure they specialize in VA loans for a seamless and stress-free experience.Delays often come from lenders unfamiliar with VA guidelines, not the VA itself.

• Deep VA Expertise: reAlpha Mortgage supports buyers across 29 states with personalized VA loan guidance tailored to local housing markets.
• Personal Guidance: First-time VA buyer? reAlpha Mortgage helps you navigate your COE, credit profile, and property criteria from start to finish.
• Competitive Rates: reAlpha Mortgage prioritizes VA loan optimization-offering competitive rates that reflect your earned benefits.

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

• Explore homes that fit your budget today.

• Your next move could come with thousands back at closing.

Estimate your savings → Rebate Calculator

Your military service earned these benefits. Let us help you cash them in. Start smart and save more with reAlpha Mortgage.