Are Conventional Mortgage Rates Better Than VA Rates?

By Kevin Landis

The VA offers favorable home and business loans to members of the military before and after their military service ends. While the rates for Veteran’s Administration loan are not high, they are not always better than the rate than you can get elsewhere. A military member may wonder if he can get VA loan rates are conventional mortgage rates.

Factors That Determine Rates

A military member of a veteran with a perfect or an excellent credit rating may find that conventional mortgage rates are better than VA rates, but the difference is that the applicant is not guaranteed a conventional loan. As long as a person can prove that he spent enough time in the service to qualify for benefits and did not receive a bad conduct or dishonorable discharge, he can get a loan from the Veteran’s Administration. VA loans are backed by the federal government and the governing agency does not feel the same pressure to make a profit that commercial institutions do.

Conventional Mortgage Rates Versus VA Loans

Conventional mortgage rates are sometimes better than VA rates, but this is not usually the case. A person with a less than perfect or tarnished credit rating who qualifies for a VA loan will generally get better rates from the Veteran’s Administration. Another advantage of the VA loans is that they do not suffer from the same terms unfavorable to the lender that bad credit mortgages might suffer from. A person considering a mortgage, regardless of the source, should shop around and see what types of rates he can get. If a military member or a veteran can get a better conventional mortgage rate, he should apply for that loan instead of trying to get a guaranteed home loan from the Veteran’s Administration. Both types of loans must be paid back.

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1. Are The VA Interest Rates Different Than Conventional Loans?
2. Are Conventional Mortgage Rates Better Than Va Rates?
3. How Do Conventional Home Loans Compare To FHA Loans?
4. What Is PMI For A Conventional Home Mortgage Loan?
5. What Does The Conventional Loan Limit Mean?