I’ve noticed the same thing with VA rates lately and it’s made me a little nervous, honestly. I’m always watching my credit and trying to keep things as clean as possible, but it feels like even with a solid score, VA rates aren’t as competitive as they used to be. I wonder if it’s just lenders padding the rates because they know VA loans have extra protections for buyers? Or maybe it’s just the general rate environment right now.
I had a weird experience last year—applied for a VA refi thinking I’d get a break, but the rate was actually higher than what my buddy got on a conventional. My DTI was better too. It made me wonder if lenders are just less motivated with VA loans these days, or if there’s something else behind the scenes. Anybody else notice lenders tacking on extra fees or “points” to bring the rate down? I’m always double-checking the fine print now... can’t be too careful.
I get where you’re coming from, but I’ve actually had the opposite experience a couple of times. Last fall, I helped a client close on a VA loan and their rate was right in line with conventional offers—sometimes even a hair lower, depending on the lender. The catch was, not every lender seemed equally “into” VA loans, if that makes sense. Some just didn’t seem to want the paperwork or hassle, so they padded the rates or slipped in extra fees. It’s not always the program, sometimes it’s just the lender’s appetite for VA business. Shopping around made a huge difference for us.
The catch was, not every lender seemed equally “into” VA loans, if that makes sense. Some just didn’t seem to want the paperwork or hassle, so they padded the rates or slipped in extra fees.
That’s been my experience too. When I refinanced last year, I noticed a huge spread in rates and fees for VA options—sometimes it almost felt like certain lenders just didn’t want my business unless I was going conventional. I’m not convinced it’s always about the actual VA program being more expensive; sometimes it’s just who you happen to talk to. Shopping around took way more effort than I expected, honestly.
I get what you’re saying, but I’m not totally convinced it’s just about the lender’s attitude. When I dug into it, some of the higher rates seemed tied to how the VA loans are structured—like, stricter appraisal stuff or funding fees. Maybe some lenders just aren’t set up for that extra work, but I don’t think it’s always personal. Still, yeah, shopping around is a pain...
“some of the higher rates seemed tied to how the VA loans are structured—like, stricter appraisal stuff or funding fees.”
- You’re right, it’s not just about the lender’s attitude.
- VA loans do have extra hoops—appraisals can drag things out, and that funding fee isn’t nothing.
- Some lenders just don’t want to mess with the paperwork, so they pad the rate to cover their hassle.
- I’ve seen some banks treat VA loans like a side gig, not a priority.
- Shopping around is a pain, but I’ve saved a chunk by doing it. Not fun, but worth it if you can stomach the calls.