A 3rd party broker that specializes in mortgages guaranteed by the US government

Interest Rate Requirements

Interest Rate RequirementsCurrently, the VA does not decide on interest rates for VA home loans.

VA loan interest rates vary depending on the lender and market conditions. However, VA loans generally offer competitive interest rates compared to conventional loans.

Borrowers with a higher credit score and a solid financial history are likely to qualify for lower interest rates, while borrowers with low credit scores will most likely see higher interest rates.


Discount Points

VA loans can have discount points, which are fees paid upfront to lower the interest rate on the loan. One discount point typically costs 1% of the loan amount and can lower the interest rate by 0.25% to 0.50%. Paying discount points can be a good option for borrowers who plan to stay in their home for a long time and want to save money on interest over the life of the loan.

However, it’s important to weigh the upfront cost of discount points against the potential long-term savings to determine if it’s the right choice for your individual situation.

Like interest rates, discount point amounts are decided by the lender and not the Veterans Administration.

Discount points are added to the total closing costs needed to close the loan and vary from lender to lender.


Finance Your Next Home with a VA Home Loan

VA Home Loan Centers helps veterans, active duty military, and their dependents apply for the VA home loan.  apply for a VA loan.