25 Feb Mortgage Rates for VA Home Loans
The overwhelming majority of service members and veterans receive lower interest rates with the VA home loan program over traditional mortgages. This is thanks to the financial backing given by the Department of Veterans Affairs as the loan guarantor, which allows lenders to assume less risk and in turn, provide lower interest rates.
If you’d like to find a qualified VA Loan specialist near you, visit our Specialists page.
How will a lender decide a borrower’s interest rate?
There are several factors involved in determining the interest rate of a loan, including:
- Ratio of debt-to-income
- Current conditions of the housing market
- A borrower’s credit score
- Duration of loan (15 year, 20 year, 25 year, or 30 year)
A good credit score will nearly guarantee you a lower interest rate. This is again due to the risk a lender is assuming in financing the loan. Like before, though, thanks to the federal government guaranteeing the mortgage, most borrowers will still see a lower interest rate even if their credit isn’t perfect.
What steps need to be taken to secure an interest rate?
The first thing you’ll need to do is find the house. Once you’ve located your future residence, your next step is to enter into a contract with the seller(s). That’s when your VA home loan lender will be able to determine your interest rate. Their underwriters are going to want to look over the loan as well as know your estimated closing date.
You don’t have to wait until entering into a contract to start the process, though. Visit our Specialist page to talk with a qualified VA mortgage specialist in your area who can help walk you through the process and get you on the path to homeownership.
What is the benefit of signing up with a Veterans Anonymous specialist?
Getting an interest rate as low as possible is important for your long-term financial health. There are private lenders who attempt to gain your business by initially telling you that to qualify for an extremely low interest rate is practically guaranteed. This is hardly the case as super low interest rates are usually very tough to qualify for.
The specialists on our site have been vetted and have demonstrated a knowledge of the VA Loan process and a track record of setting realistic expectations from the beginning.