VA Loan Rates

Interest Rate Reduction Refinance Loan. The VA Interest Rate Reduction Refinance Loan (IRRRL) lowers your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable-rate mortgage (ARM) into a fixed-rate mortgage.

IRRRL Facts

No appraisal or credit underwriting package is required when applying for an IRRRL.
An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
When refinancing from an existing VA ARM loan to a fixed-rate loan, the interest rate may increase, but VA loan rates are lower.
No lender is required to give you an IRRRL, however, any VA lender of your choosing may process your application for an IRRRL.
Veterans are strongly urged to contact several lenders because terms may vary and effect the va loan rates. You may NOT receive any cash from the loan proceeds.

Eligibility

An IRRRL can only be made to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement you originally used.

A Certificate of Eligibility (COE) is not required. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement. No loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be the first mortgage. You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller if you assumed the loan. The occupancy requirement for an IRRRL is different from other VA loans. For an IRRRL you need only certify that you previously occupied the home.

Application Process

Click here to start your VA loan application with the most competitive VA loan rates.

A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or your lender may use our e-mail confirmation procedure in lieu of a certificate of eligibility.

Loan Limits

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by the county since the value of a house depends in part on its location.

The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to four times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price. See Loan Limits for more information about the limits in your county.

VA Funding Fee

Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. The VA Loan Rates are affected. This reduces the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category if you are a first-time or subsequent loan user. VA loan rates change from year to year and it’s best to check with us to see your current va loan rates on 15 yr and 30 year VA mortgages. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time. You do not have to pay the fee if you are a:

Veteran receiving VA compensation for a service-connected disability, OR
Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
Surviving spouse of a Veteran who died in service or from a service-connected disability.

The funding fee for second-time users who do not make a down payment is slightly higher. Also, the National Guard and Reserve Veterans pay a slightly higher funding fee percentage.

Contact a Security America Mortgage VA Loan Specialists today by filling out the simple form so that we can confirm your VA Loan rates.

FAQ of VA Loan Rates

How do VA loan rates and conventional loan rates compare?

If you compare conventional loans to va loans given the same credit score and loan amount the conventional rates are going to be way higher

A 740+ conventional borrower putting down 25% with might be person who may be able to get a rate comparable to a VA loan. The VA loan could have a 640 and get the same or better rate as a conventional borrower with 25% and a 740 score so VA is normally the way you want to go if you’re a Vet when it comes to purchasing. When it comes down to a construction loan one time close the rates and fees are now higher than on the conventional one time close. Also, there is only a jumbo conventional loan one time close construction loan available and no Jumbo VA construction option over $650K. A Veteran who owns their land might have equity to qualify for a conventional one time close if it’s the best option for them at that time. That’s why we are going to give you several options so that you can do what’s best for you and your family.

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