02 Feb How Has VA Loan Rates Graph Changed Over Years?
VA loans are offered to borrowers with a little-to-no upfront cost and lower interest rates. Most VA loans are offered at zero down payment. However, some lenders may ask you to pay an upfront cost to qualify for the loan. Besides, VA loans are only offered to Veterans, army officers, and their families. If you don’t meet the requirements, you can go for an FHA loan, which offers similar benefits.
While VA loans let borrowers qualify for zero down payment, they must pay the VA funding fee to cover the Department of Veterans Affairs’ mortgage guarantee program’s cost. You can reduce your VA funding fee by making a down payment against your loan. Many private lenders offer VA loans to qualified applicants. We recommend you go through different lenders and compare their VA loan rates before applying for the loan.
VA Loan Approval Rate Has Dipped In Recent Times
If we talk about the current VA loan rates, they have declined along with conventional mortgage rates. However, the rate of VA loan approvals has also decreased because of stricter underwriting standards. Still, VA loan rates have consistently been seen to be lower than conventional mortgage loans.
Back in 2008, VA loan rates were reduced to a record low by lenders after being stimulated by the Federal Reserve. In 2018, mortgage rates were yet again on the higher side, but soon in mid-2019, interest rates declined again. If we talk about 2021, as of now, the mortgage rates are still on the lower side, and this could be an optimal time to apply for a VA loan or refinance your other loans into VA loans. We cannot guarantee that the streak of low mortgage rates will continue in the coming days. So, this could be your chance to buy your dream home using VA loan benefits.
In 2018 alone, VA loan rates stood at nearly 18 – 20 basis points less than average conventional loan rates. As per the recent data, this difference broadened till early 2019, with VA loan interest rates going 0.23% lower than conventional loans in March.
VA home loan benefits aren’t limited to low-interest rates and no upfront cost. Besides these, borrowers can also qualify for the VA loan with a low credit score. Most VA lenders don’t require the applicants to have a high credit score.
Like any other loans, VA loans are financial products that should be purchased with an expert’s guidance. We recommend you consult an experienced VA loan advisor at first.