If you're a veteran or service member shopping for a home in Texas, you've probably searched for VA loan rates and found a dozen different numbers. Here's why: there isn't one VA rate. Your rate is set by your lender, and it depends on your situation and the day you lock.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage (The Wood Group) in Belton, and VA loans are a big part of what I do with Fort Hood right here in Bell and Coryell counties. I won't quote a rate in a blog post, because any number would be outdated fast and might not fit you. Instead, here's how VA rates actually work, so you can compare offers like a pro.
Want a personalized quote? Get Pre-Approved or Book a Free Consultation.
Who Sets VA Loan Rates?
The VA doesn't set your interest rate. According to the VA, your lender determines:
- Your interest rate
- Discount points (fees you may pay at closing to get a lower rate)
- Other closing costs
The VA notes that these details may vary from lender to lender. That's why comparing offers matters.
Why VA Loans Often Come With Good Terms
The VA guarantees part of each VA-backed loan, which lowers the lender's risk. The VA says its purchase loans often offer better terms and interest rates than other loans from private lenders, plus no down payment in most cases and no private mortgage insurance. "Often" is the key word, though. Your own terms depend on your full profile.
What Can Move Your VA Rate
Every lender prices loans a little differently, but these are the factors I talk through with buyers most often:
Your Credit Profile
The VA doesn't require a minimum credit score, but lenders do review your credit, and many have their own minimums. A stronger credit history can help your pricing.
Discount Points
Paying points upfront can lower your rate. Whether that's worth it depends on how long you plan to keep the loan. If you might move again with your next PCS, paying a lot upfront may not pay off.
Loan Type and Term
A refinance, a purchase, and different loan terms can all price differently.
Timing and Rate Locks
Rates move with the market. Once you're under contract, locking your rate protects you from changes for a set period. We'll talk through timing so your lock lines up with your closing date.
Look at Total Cost, Not Just the Rate
A low rate with high fees isn't always the better deal. When you compare VA offers, look at the whole picture on your Loan Estimate.
The VA Funding Fee
The funding fee is a one-time charge set by the VA, not your lender, and it doesn't change your interest rate. For a first-time VA purchase with less than 5% down, the VA lists 2.15% of the loan amount. It's 3.3% after first use with less than 5% down, and lower with 5% or more down. Veterans receiving VA disability compensation, and some others, are exempt. You can pay it at closing or finance it into the loan.
Closing Costs and Seller Help
On a VA purchase loan, only the funding fee can be financed. Other closing costs are paid at closing. The good news: you and the seller can negotiate who pays costs like the loan origination fee, discount points, the VA appraisal fee, and title insurance. The VA limits seller concessions to 4% of the home's reasonable value, but it doesn't limit credits for a loan's closing costs.
How to Compare VA Loan Offers
- Get quotes around the same time. Rates change, so compare offers from the same day when you can.
- Compare Loan Estimates line by line. Look at the rate, points, lender fees, and cash to close.
- Ask what's included. Is the rate based on paying points? Is the lock period long enough?
- Think about your timeline. How long will you keep the home and the loan?
The VA itself encourages buyers to contact more than one lender to compare.
Texas Options That Can Pair With Your VA Benefit
Texas veterans may have extra help available. TSAHC's Homes for Texas Heroes program includes veterans and pairs a fixed-rate mortgage with down payment assistance of up to 5% of the loan amount. TDHCA offers exceptions to its first-time buyer rule for qualified veterans, and veterans may qualify for a Mortgage Credit Certificate. Learn more in my Texas first-time home buyer programs guide and my down payment assistance in Texas guide. For VA basics, visit my VA loans page. Buying near the base? See my Killeen page.
Frequently Asked Questions
What are VA loan rates in Texas today?
Rates change daily and depend on your credit, loan type, points, and lock timing, so I don't publish them here. Get pre-approved or book a consultation for a personalized quote.
Does the VA set the interest rate on my loan?
No. The VA says your lender determines your interest rate, discount points, and other closing costs, and these can vary from lender to lender.
Are VA loan rates lower than conventional rates?
The VA says its purchase loans often offer better terms and rates than other loans from private lenders. Your own rate depends on your profile, so it's worth comparing options side by side.
Does the VA funding fee raise my interest rate?
No. The funding fee is a one-time charge set by the VA. You can pay it at closing or finance it, and some veterans, including those receiving VA disability compensation, are exempt.
Can I lower my VA rate later?
If rates drop, you may be able to refinance with a VA Interest Rate Reduction Refinance Loan (IRRRL). The VA lists the funding fee for an IRRRL at 0.5%.
Let's Find the Right VA Loan Offer for You
You earned this benefit. Let's make sure you get the most out of it, with clear numbers and no pressure.
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Taylor Ring, NMLS# 2809683 | Fairway Independent Mortgage Corp, NMLS# 2289 | Equal Housing Opportunity