What is the current mortgage rate for a 30-year fixed loan?

As of February 26, 2026, the average 30-year fixed mortgage rate is 5.98%, according to Freddie Mac's weekly Primary Mortgage Market Survey — the first reading below 6% since mid-2022.

Will mortgage rates continue to drop in 2026?

Economists and housing analysts have mixed outlooks. The NAHB projects an average of around 6.17% for 2026, suggesting rates may tick back up slightly from current lows. However, a softening economy or additional Federal Reserve rate adjustments could push rates lower. The safest approach is to act when rates align with your personal financial goals rather than trying to time the market perfectly.

What credit score do I need to get the best mortgage rate?

Generally, borrowers with credit scores of 740 or higher qualify for the most competitive mortgage rates. Scores between 700-739 still qualify for good rates, though slightly higher. An Azalea Mortgage loan officer can review your credit profile and help identify strategies to maximize your rate eligibility.

How much does a 1% mortgage rate change affect my monthly payment?

On a $300,000 loan, each 1% change in interest rate affects your monthly payment by approximately $170-$180. On a $400,000 loan, that figure rises to approximately $230-$240 per month — or roughly $2,800 per year.

Can I get a mortgage in Tyler, TX with a low down payment?

Yes. Several loan programs offer low or no down payment options, including FHA loans (3.5% down), VA loans (0% down for qualifying veterans and service members), USDA loans (0% down for eligible rural and suburban properties), and conventional loans (as low as 3% down for first-time buyers). Azalea Mortgage specializes in helping Tyler-area buyers navigate all of these programs.

5 VA Loan Myths Debunked for Tyler, TX Homebuyers in 2026

Ben Burks

2 minutes ago

5 min read

If you have served in the military, you have probably heard a lot of VA loan advice from friends, coworkers, and the internet. Some of it is right. A lot of it is outdated or just plain wrong. At Azalea Mortgage, we hear the same questions from Tyler, TX buyers every week, and the myths below come up the most.

Why does this matter right now? Mortgage rates are still elevated. The Freddie Mac survey put the average 30-year fixed rate at 7.24% on October 29, 2026. (Freddie Mac, October 29, 2026) The Mortgage Reports listed the average 30-year VA rate at 7.008% on November 5, 2026. When money is tight, a wrong assumption can keep a qualified veteran from using one of the best loan benefits available. Let's clear it up. For our latest rate numbers, see our November 2026 mortgage rates update.

Myth 1: VA Loans Have a Maximum Loan Amount

Fact: Veterans with full entitlement have no VA loan limit. Many buyers think VA loans cap out at a low number. In reality, the VA does not set a loan limit for borrowers with full entitlement. Your lender will still look at your income, debts, and credit to decide how much you can borrow. If you have used part of your entitlement before, a limit may apply to the part of the loan the VA guarantees.

Myth 2: A VA Loan Means No Costs at All

Fact: Most VA borrowers pay a one-time funding fee, but some are exempt. VA loans do not require a down payment or monthly mortgage insurance. That is a real savings, but it is not "free." The VA charges a funding fee to help keep the program running at no cost to taxpayers. For a first-time VA purchase loan, the fee is 2.15% with no down payment, 1.5% with 5% down, and 1.25% with 10% down. For later use with no down payment, it is 3.3%. (VA.gov funding fee rate chart, effective April 7, 2023, page updated October 5, 2026)

The good news is that veterans who receive VA disability compensation are exempt, as are certain surviving spouses and Purple Heart recipients on active duty. You can also roll the funding fee into your loan. On a purchase, it is the only cost you can finance. You will pay other closing costs at the closing table, though the seller can help. Read the full details on the official VA funding fee page.

Myth 3: Sellers Do Not Want VA Offers

Fact: A VA offer from a prepared buyer is just as strong as any other. Some people believe sellers shy away from VA buyers because of the appraisal or extra paperwork. In practice, VA loans close every day across East Texas. A pre-approval from an experienced Tyler TX mortgage lender, a clean contract, and a flexible timeline go a long way. Sellers are also allowed to pay some of your costs, up to 4% of the home's reasonable value in seller concessions. (VA.gov, funding fee and closing costs page, updated October 5, 2026)

Myth 4: You Can Only Use Your VA Loan Once

Fact: You can use your VA benefit more than once. Your entitlement does not disappear after one purchase. If you sell the home and pay off the loan, your entitlement is restored. In some cases you can also have a second VA loan with remaining entitlement, for example if you get new orders and move. Just remember that the funding fee for later use with no down payment is higher, so ask us to run the numbers.

Myth 5: The VA Appraisal Will Reject Any Older Home

Fact: The VA appraisal checks that the home is safe, sound, and sanitary, not that it is perfect. Every VA loan needs a VA appraisal that sets the home's value and checks the VA minimum property requirements. These rules look for things like a sound roof, working systems, safe water, and no major hazards. Older Tyler homes pass all the time. If something does need repair, it can often be fixed before closing, and sellers and buyers can negotiate who handles it. Talk to your lender early so you know what to expect.

Who Can Actually Use a VA Loan?

You do not need to be a combat veteran or a 20-year retiree. Veterans, active-duty service members, many National Guard and Reserve members, and some surviving spouses can qualify. Typical service minimums are 90 days of active duty during wartime, 181 days during peacetime, or six years in the Guard or Reserve, though some exceptions apply. Your first step is a Certificate of Eligibility, which we can help you request. You can also read about eligibility on VA.gov's home loans page. And if you want to see how a different program compares, our FHA loan guide for Tyler, TX is a good place to start.

Frequently Asked Questions

Can I use a VA loan to buy a home in Tyler, TX if I am still on active duty?

Yes, active-duty service members can use a VA loan if they meet the service requirements and get a Certificate of Eligibility. You must plan to live in the home as your primary residence, so timing matters if you have upcoming orders. Azalea Mortgage can help you plan the purchase around your situation.

Do I need a down payment for a VA loan?

No, eligible borrowers with full entitlement can buy with zero down payment. You will still need money for closing costs, earnest money, and the home inspection. Putting down 5% or 10% lowers the VA funding fee from 2.15% to 1.5% or 1.25% on a first-time VA purchase loan, according to VA.gov.

Is there mortgage insurance on a VA loan?

No, VA loans do not require monthly private mortgage insurance. The VA guarantee takes its place, and you pay a one-time funding fee instead unless you are exempt. That is one reason VA monthly payments are often lower than conventional or FHA payments with the same loan amount.

Can I buy a second home or investment property with a VA loan?

No, a VA loan must be for a home you will live in as your primary residence. You can buy a duplex, triplex, or fourplex with a VA loan if you live in one of the units, which lets some East Texas buyers earn rental income. Vacation homes and pure investment properties do not qualify.

What credit score do I need for a VA loan in Tyler, TX?

The VA does not set a minimum credit score, but lenders do. Many lenders look for scores around 580 to 620 and up, and each lender sets its own rules. Azalea Mortgage will review your full profile, including income and debts, and tell you where you stand.

Talk to a VA Loan Expert in Tyler, TX

Have questions about VA loans? The Azalea Mortgage team is here to help Tyler, TX homebuyers navigate every step of the financing process. Reach out today for a free consultation.

This article is general information, not financial advice. Rates and program rules change, so confirm details with your lender.