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Rates as of . 760+ FICO, $250K loan, LTV ≤80%, SFR, Primary Residence. 1 discount point. Valley West Corporation DBA Valley West Mortgage. NMLS #65506. See assumptions
VA mortgage rates don't come from the VA — they come from the bond market. Lenders price VA loans off the 10-year U.S. Treasury yield, adding a margin that covers their costs and profit. When Treasury yields rise, mortgage rates follow. When yields fall, rates drop.
The VA guarantees 25% of every VA loan, meaning lenders lose less if a borrower defaults. This reduces the spread by 0.25-0.50% compared to conventional loans. On a $400K loan, that's $50-100 less per month, or $18,000-36,000 over 30 years.
Retail lenders offer one rate — their own. Mortgage brokers like Valley West access wholesale rate sheets from 50+ lenders simultaneously. Wholesale rates are typically 0.125-0.375% lower than retail because there's no branch overhead baked in.
After peaking above 7% in late 2023, VA rates have settled into the mid-5% range. Markets expect rates between 5.5-6.0% through 2026.
If CPI trends toward 2%, rates could dip below 5.5%. If inflation reignites, rates push toward 6.5%. Spring 2026 buying season is the key test.
A $400K home appreciating 3%/yr gains $12K in equity annually — far more than the $30-50/mo a 0.25% rate drop saves. If you're ready, today's rates are solid.
On a $400,000 home over 30 years
Your VA rate isn't random — it's determined by specific factors lenders evaluate. Understanding them gives you power to improve your rate before you apply.
740+ gets the best rate. Every 20-point improvement saves ~$64/month. The VA has no minimum, but most lenders require 580-620.
VA allows up to 60% DTI, but 41% or lower gets the best pricing. Pay down credit cards before applying — every $100/mo eliminated improves DTI by ~0.5%.
$0 down is standard, but 5% down can improve your rate and eliminates the funding fee for disabled veterans. Single-family homes get the best rates.
Get your actual rate in 60 seconds. No SSN. No credit pull.
Check My Rate →FHA requires $14,000 down. Conventional requires $20,000-80,000. VA requires $0. That money stays in your savings for emergencies or investments.
Conventional charges $186/mo PMI for 7-10 years. FHA charges $283/mo MIP for life. VA charges neither — ever. That's $2,200-3,400 saved per year.
Lower rate + $0 down + $0 PMI + no loan limits. On a $400K home over 30 years, VA saves $125,000+ compared to FHA.
Three reasons VA consistently offers the lowest mortgage rates in America.
The VA guarantees 25% of every VA loan. This dramatically reduces lender risk, which translates directly into lower interest rates for you.
FHA charges lifetime MIP. Conventional charges PMI until 20% equity. VA charges neither — saving veterans $150-400+ every single month.
VA loans have the lowest foreclosure rate of any loan type — 1.73% vs 3.35% for FHA. Lenders reward this reliability with better pricing.
Rates shown are estimates based on current market conditions and may vary. Actual rates depend on credit score, loan amount, property type, and other factors. Rates subject to change without notice. Not a commitment to lend. Equal Housing Lender. NMLS #65506.