VA Loan Percentage in 2025: What’s the Best Rate You Can Get?

Wondering if all VA loan rates are created equal? Spoiler: they're not—and choosing the right one could save you thousands. In 2025, understanding how VA mortgage rates work isn’t just smart. It’s essential. This guide breaks down how to decode your rate, what influences it, and how to lock in the lowest number possible.

• VA loan rates are often lower than conventional mortgage rates, helping you save significantly over time.
• The VA does NOT have a minimum credit score requirement. Any number you're shown is a lender overlay. However, many lenders look for a 620+ score for better rate offers. VA Handbook 26-7, Chapter 4
• Federal Reserve policy influences VA rates. Tracking interest rate trends can help you decide when to lock.

Refinance options like the VA IRRRL (Interest Rate Reduction Refinance Loan) often offer streamlined paperwork and reduced rates.

VA mortgage rates can shift daily, influenced by:

• Bond market movement
• Inflation trends
• Federal Reserve policy

The VA does not set a minimum credit score. Lenders often require 620 or higher, but manual underwriting is available for lower scores in some cases.

Citation: VA Handbook 26-7, Chapter 4

Tip: Improving your credit score can drop your interest rate by up to 0.50% or more.

Understand your eligibility first👉 Learn the full VA loan eligibility rules so you know you qualify.

Need a VA certificate? This guide on the VA Certificate of Eligibility walks you through it.

Mortgage rates—including VA—are influenced by the Federal Reserve’s interest rate decisions. When the Fed raises rates, mortgage rates tend to follow.

Keep an eye on the Federal Reserve’s rate announcements.

• 15-Year VA Loans: Lower rates, higher payments.
• 30-Year VA Loans: Higher rates, lower payments.

If you can afford higher monthly payments, a shorter loan term can save you tens of thousands in interest.

• Purchase Loans: Standard VA rates.
• VA IRRRL (Streamline Refinance): Often lower rates with no appraisal or income verification required.

Reference: VA IRRRL Guidelines - VA.gov

Explore rate details deeper👉 Dive into VA loan pros, cons, and options.

Ready to refinance? Check out our VA Streamline Refinance walkthrough.

Not all VA lenders offer the same rate—even for the same borrower profile.

Always compare rates from 3–5 VA-approved lenders or work with a VA mortgage broker who can shop for you.

Note: VA limits certain closing costs that can be charged to the borrower. Learn more in VA Pamphlet 26-7, Chapter 8.

Use trusted sites like:

• Bankrate
• Freddie Mac PMMS
• [Lender marketplaces]

Pre-qualification gives you an idea of what you can afford—and shows sellers you’re serious.

Brokers can often find lower rates than direct lenders because they shop your profile across multiple sources.

Myth: All VA lenders offer the same rate. Truth: Each lender sets its own rates, fees, and credit score overlays.

Myth: VA loans are only for first-time buyers. Truth: You can use your VA entitlement multiple times—even after foreclosure.

Myth: You can’t refinance with a VA loan. Truth: The VA IRRRL and cash-out refinance options are both available.

Most lenders prefer 620+, but higher scores can qualify you for significantly better rates.

Yes. Use the VA IRRRL to drop your rate with fewer docs and no appraisal.

Usually, yes. Expect 0.25% to 0.50% savings.

Definitely. They shop across lenders to get you the best rate.

VA limits fees, but always check lender-specific charges.

Want the lowest VA loan percentage possible?

• Compare rates online or with a VA mortgage broker.
• Understand your VA entitlement, credit profile, and eligibility.
• Consider Be My Neighbor Mortgage to explore AI-powered rate comparisons and commission-free real estate options with reAlpha.

Be My Neighbor Mortgage, LLC | NMLS #1743790

‍This is not a commitment to lend. All loans are subject to credit and underwriting approval. Rates and terms are subject to change based on market conditions and borrower qualifications.