Compare Current Mortgage Rates in West Virginia

Buying a home in West Virginia can be an exciting process. However, whether you decide on a midcentury modern in Charleston or a bungalow in Huntington, you won’t want to forget about mortgage rates. These play a crucial factor in determining the overall cost of your home. Mortgage rates reflect the amount of money, in addition to your home’s purchase price, that you’ll need to pay your lender back in exchange for granting you a home loan. 

In West Virginia, mortgage lenders have the power to set their rates. To make sure these rates are competitive and protect their investment, lenders consider factors such as: 

• The prime rate: Each bank sets its own prime rate, a base rate that is used as a reference point for assigning interest rates to loans. Often, lenders base this rate on the Federal Reserve’s federal funds rate, which banks use when lending to each other. 
• Inflation: Inflation refers to the rising cost of goods and services. It can play a part in determining West Virginia mortgage rates since it affects a homebuyer's buying power. Mortgage lenders will consider the effects of inflation when determining rates, often raising them to protect the value of the dollar.
• The economy: The overall state of the economy informs lenders’ rate decisions. When the economy is facing hardship, lenders typically raise their rates. On the flip side, rates typically decline when the economy stabilizes.

The West Virginia Housing Development Fund offers assistance to first-time homebuyers through the West Virginia Housing Development Fund’s homeownership program. In addition, qualifying West Virginians can access the Movin’ Up program, which is available to some first-time buyers or eligible homeowners who are looking for a new place.

Homeownership Program loan

Through West Virginia’s Homeownership Program, residents can apply for a 30-year fixed-rate mortgage for up to 100% of the home’s purchase price. This means that you can put as little as zero down on your new home if you qualify. 

To qualify for this program, you’ll need to meet income and home price limits. These limits change from year to year and vary by county and family size.

Movin’ Up 

The Movin’ Up program offers a step up for low- to moderate-income families looking to purchase a home. Although it isn’t designed specifically with first-time buyers in mind, it is available to first-time buyers who may not qualify for the homeownership program loan.

The Movin’ Up program has income limits of $130,560 for a one- to two-person family or $152,320 if there are three or more people in your household. Additionally, the home you purchase can’t exceed its home price limits, which vary by county. 

Those making at least 80% below the area median income according to the census tract may also qualify for a lower APR.

To get the best mortgage rate in West Virginia, you’ll need to prove to lenders that you’re a trustworthy borrower. Consider the following tips:

• Improve your credit score: Lenders look at your credit score as a measure of how you handle credit. If your score is low, you’ll likely see higher mortgage rates than those with more desirable scores. To improve your credit, you can take steps such as lowering your credit utilization, paying off outstanding debts, and settling debts sent to collections agencies. 
• Lower your debt-to-income ratio (DTI): Your DTI reflects how much debt you have compared to income. If your DTI is high, lenders will likely see you as a higher risk and offer you a higher mortgage rate. You can lower your DTI by paying off debt or increasing your income. 
• Compare multiple lenders: Each lender uses its own set of rules to determine the mortgage rates it offers you. That said, your rate can vary between lenders. To find the best rate, compare multiple rate offers before deciding on a particular mortgage lender. 
• Increase your down payment: The higher your down payment, the less you’ll need to borrow from a lender. By increasing your down payment, you can improve your loan-to-value ratio, which lenders use to measure your risk.
• Take advantage of rate locks: When you get a rate quote, some lenders will offer you a rate lock. Rate locks can help you lock in the rate being offered at the time of your quote, which could increase between being quoted and the time that you close on a loan. However, it’s important to note that not all lenders offer a rate lock option. 

West Virginia residents have access to many different types of mortgage loans. Each type comes with different requirements and terms that you’ll need to weigh carefully when deciding which loan is best for you: 

Homeownership program loan

• Best for: first-time homebuyers in West Virginia
• Minimum credit score requirement not disclosed
• Loan limit varies by county
• 0% minimum down payment requirement

Movin’ Up program

• Best for: West Virginia homebuyers making under $152,320 a year
• Minimum credit score requirement not disclosed
• Loan limit varies by county
• Minimum down payment requirement not disclosed

Conventional loan

• Best for: Buyers with good to excellent credit
• Minimum credit score requirement varies by lender
• $766,550 loan limit in most counties
• 3% minimum down payment requirement

FHA loan

• Best for: first-time homebuyers
• 500 minimum credit score requirement with a 10% down payment or 580 with a 3.5% down payment
• Loan limit varies by county
• 3.5% minimum down payment requirement

VA loan

• Best for: Veterans and service members
• No minimum score, but you’ll need to prove that you can repay the debt
• $766,550 loan limit depending on the county
• No minimum down payment requirement

Jumbo loan

• Best for: Those buying high-priced homes
• Minimum credit score requirement varies by lender
• Loan limits above $766,550, depending on location
• 10% minimum down payment requirement