The Veterans Administration has typically offered only VA Fixed Rate Loans in the past.  However this has recently changed with the addition of the new Hybrid Adjustable Rate Loans.

VA mortgage loans are typically Fixed Rate Loans for 30 or 15 years.  Though some lenders may offer other VA mortgage terms such as 10, 20 or 25 year terms.

VA no longer prescribes interest rates for VA guaranteed home loans. The VA fixed rate mortgage's interest rate is negotiated between the veteran-borrower and the lender to allow the veteran to obtain the best available VA fixed rates.

The lender and borrower are expected to honor any lock-in or other agreements they have entered into which impact the interest rate on the VA loan. VA does not object to changes in the agreed upon interest rate, as long as no lender/borrower agreements are violated. The following procedures apply in such cases.

Any increase in the VA loan interest rate of more than one percent requires

• reunderwriting to ascertain the veteran’s continued ability to qualify for the loan
• documentation of the change, and
• a new or corrected loan application (URLA) with any corrections initialed and dated by the borrower.

Veterans may pay reasonable discount points on VA guaranteed home loans. The amount of discount points is whatever the borrower and lender agree upon. Discount points can be based on the principal amount of the loan after adding the VA funding fee, if the funding fee will be paid from loan proceeds.

VA Fixed Rate mortgages are an excellent choice for veterans who want stability in their monthly payments.