What a 7% Rate Actually Costs a VA Buyer in Kaufman County

The question

Rates just crossed 7%. Freddie Mac had the 30-year fixed at 7.03% the week of September 24, 2026, the first time over 7% since January 2025. By October 1 it was 7.28%.

So if you're a Veteran or service member eyeing a house in Kaufman County, what does that really mean for you?

The straight answer

Most of the payment math you're seeing assumes 20% down on a conventional loan. Most VA buyers I work with aren't putting 20% down. That's kind of the point of a VA loan.

Here's how a VA loan is different:

• $0 down is allowed.
• No monthly mortgage insurance.
• A one-time funding fee instead: 2.15% of the loan for first use with less than 5% down, 3.3% for later use. It drops to 1.5% with 5% down and 1.25% with 10% down.
• Most Veterans with VA disability pay no funding fee.
• Qualifying looks different. VA checks your residual income (what's left each month after the bills) along with a 41% debt-to-income guide.

Same house, four ways to buy it

Let's use a $350,000 home, right around what a lot of Kaufman and Forney homes go for, new construction and resale. It's not the median, just a realistic price point. (For context, Redfin had Kaufman County's median sale price at $294,016 and Forney's at $334,778, three months ending August 2026.) Here it is four ways, all at 7.03% so it's apples to apples. Illustration only. VA and conventional rates are priced separately, and yours won't be the survey average.

What that tells you:

• Yes, the VA payment is higher. About $517 more a month, because you're borrowing the whole price.
• But you keep $70,000 in the bank. That's your emergency fund, moving money, the fence. For a lot of military families, that matters more.
• Rolling in the fee vs. paying cash is only about $50 a month. Paying $7,525 up front to save $50 takes about 12½ years to break even.
• At 7.28%, every row goes up roughly $47–$61 a month.

None of this includes taxes, insurance, or HOA. In Kaufman County, those add up.

Ways to get a lower rate right now

You can't control the market. You can control some of this:

• Use your VA benefit. On October 2, Optimal Blue's average locked 30-year rate was 7.043% for VA vs. 7.379% conventional. An average, not a promise.
• Ask the seller for a buydown. A 2-1 cuts your rate 2 points in year one and 1 point in year two. A 1-0 cuts it 1 point for year one. You still qualify at the full rate.
• Mind the 4% cap. VA caps seller concessions at 4% of the home's value. Buydown money and a seller-paid funding fee both count. Normal closing costs don't.
• Buy points. One point is 1% of the loan (about $3,575 here) for a permanently lower rate. How much lower varies by lender and day. Best if you'll keep the loan a long time.
• Find an assumable loan. Most VA and FHA loans can be taken over at the seller's old rate if you qualify. You'll need cash or a second loan to cover the gap.
• Ask about builder rates. On new construction, builders sometimes pay for buydowns. Compare the APR, not just the rate.
• Fix your credit first. Higher scores generally get lower rates.
• Shop around. Mortgage credit checks within 45 days count as one inquiry.
• Lock smart. Ask what happens if rates fall after you lock, and what a float-down costs.
• ARMs, carefully. They usually start lower. After the fixed period, your rate and payment can go up.
• Refinance later with a VA IRRRL. "Marry the house, date the rate" only works if rates fall. Nobody can promise that, so buy a payment you can live with today.

What a 2-1 buydown could look like

Illustration only, not a quote. VA, $0 down, first use, fee rolled in: $357,525 loan, 30-year fixed, 7.03% note rate, sample APR 7.358%*.

That buydown costs about $8,345, under the 4% cap ($14,000 on a $350K home). Add a seller-paid $7,525 funding fee (about $15,870 total) and you'd blow past the cap, so pick what matters most.

A Kaufman County example

Say you want that $350,000 house in Kaufman or Forney with $0 down. A seller-paid 2-1 buydown drops your first-year payment $460 a month. That's breathing room while you settle in, and your savings stay put. (Illustration only.)

Don't shop rates blind

A national average isn't your payment. If you're a Veteran or active-duty buyer looking at Kaufman, Forney, Terrell, or anywhere in DFW, text me at 972-951-6987. I'll run your real numbers: your entitlement, your funding fee status, and the actual house you want, before you write an offer.

— Dylan Hernandez, USMC Gunnery Sergeant (Ret.) | Team Leader, DH Real Estate Group | dylanhernandezsellsdfw.com

Disclosures

Illustration only, not a rate quote, loan offer, or commitment to lend. Rates shown are illustrations based on Freddie Mac's PMMS weekly average and Optimal Blue market averages, not offered rates. Sample APRs are estimates only. They assume a 30-year fixed loan, the VA funding fee where applicable, and an assumed $4,000 in other prepaid finance charges. The buydown example's sample APR is calculated on the 7.03% note rate and does not reflect the buydown; your Loan Estimate will show your actual APR. Buydown payments are estimates and buydowns are subject to lender, program, and seller approval. Your actual rate and APR depend on credit, loan type, down payment, property, and the market on the day you lock. Payments shown are principal and interest only and exclude taxes, insurance, and HOA. Rates may not go down, and a future refinance is not guaranteed. This article is for information only and is not financial, legal, or tax advice. Not all applicants will qualify.

Dylan Hernandez, Licensed Loan Officer, NMLS #2681224, One Real Mortgage, NMLS #198414. Equal Housing Opportunity. Real estate brokerage services provided by Real Broker, LLC. Dylan Hernandez, TREC #0787987. Texas Real Estate Commission Information About Brokerage Services | Texas Real Estate Commission Consumer Protection Notice

Sources (accessed October 5, 2026)

1. Freddie Mac, "Mortgage Rates Average 7.03%," Sept. 24, 2026 (PMMS press release): https://www.globenewswire.com/news-release/2026/09/24/3368592/0/en/mortgage-rates-average-7-03.html
2. Freddie Mac PMMS (current week, 7.28% as of Oct. 1, 2026; methodology: conventional, conforming, 20% down, excellent credit): https://www.freddiemac.com/pmms and archive https://www.freddiemac.com/pmms/pmms_archives
3. FRED, MORTGAGE30US (Freddie Mac series): https://fred.stlouisfed.org/series/MORTGAGE30US
4. Mortgage Professional America, "Mortgage rates top 7% for first time since January 2025," Sept. 24, 2026: https://www.mpamag.com/us/mortgage-industry/market-updates/mortgage-rates-top-7-for-first-time-since-january-2025/591091
5. Moomaw Realty Group, "Mortgage Rates Just Hit 7.03%… What That Costs a Kaufman County Buyer," Oct. 2, 2026 (cites Redfin $294,016 Kaufman County median, 3 months ending Aug. 2026; context only): https://www.moomawteam.com/blog/mortgage-rate-7-percent-kaufman-county-buyers-2026/
6. ReStar, Kaufman County home values (lists $294,016 median sale price, sourced to Redfin Data Center, Aug. 2026; context only): https://restar.io/home-values/texas/kaufman-county
7. Redfin, Forney, TX housing market ($334,778 median sale price, three months ending Aug. 2026; context only): https://www.redfin.com/city/6808/TX/Forney/housing-market
8. U.S. Department of Veterans Affairs, "VA funding fee and loan closing costs" (rates effective April 7, 2023; page updated Oct. 5, 2026): https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/
9. 38 CFR 36.4340, VA underwriting standards (residual income and 41% DTI guide): https://www.ecfr.gov/current/title-38/chapter-I/part-36/subpart-B/section-36.4340
10. FRED, Optimal Blue 30-Year Fixed Rate VA Mortgage Index (OBMMIVA30YF; 7.043% on Oct. 2, 2026): https://fred.stlouisfed.org/series/OBMMIVA30YF
11. FRED, Optimal Blue 30-Year Fixed Rate Conforming Mortgage Index (OBMMIC30YF; 7.379% on Oct. 2, 2026): https://fred.stlouisfed.org/series/OBMMIC30YF
12. VA, "Temporary Buydowns" (1–3 year buydowns, escrowed funds, qualify at full payment, seller/builder buydowns count toward the 4% seller-concession cap): https://www.benefits.va.gov/homeloans/temporary-buydown.asp
13. Congressional Research Service, "VA Home Loan Programs," R42504 (summarizes VA Lenders Handbook, Ch. 8, Topic 5: seller concessions, including the funding fee and discount points, cannot exceed 4% of reasonable value; buyer closing costs excluded): https://www.congress.gov/crs_external_products/R/PDF/R42504/R42504.20.pdf
14. CFPB, "How should I use lender credits and points (also called discount points)?" (1 point = 1% of loan; reduction varies): https://www.consumerfinance.gov/ask-cfpb/what-are-discount-points-and-lender-credits-and-how-do-they-work-en-136/
15. CFPB, "Mortgage financing options in a higher interest rate environment" (ARMs, temporary buydowns, compare APR; most FHA/VA/USDA loans assumable): https://www.consumerfinance.gov/archive/blog/mortgage-financing-options-in-a-higher-interest-rate-environment/
16. VA Home Loan Guaranty Buyer's Guide (VA loans assumable; 0.5% assumption funding fee unless exempt): https://www.benefits.va.gov/HOMELOANS/documents/docs/VA_Buyers_Guide.pdf
17. Fannie Mae Selling Guide B3-4.1-02, Interested Party Contributions (builder/seller-funded buydowns count as IPCs; builder standby commitments): https://selling-guide.fanniemae.com/sel/b3-4.1-02/interested-party-contributions-ipcs
18. CFPB, "Explore interest rates" (credit score, down payment, loan type, and term effects on rates): https://www.consumerfinance.gov/owning-a-home/explore-rates/
19. CFPB, "What happens when a mortgage lender checks my credit?" (multiple mortgage inquiries within 45 days count as one): https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/
20. CFPB, "What's a lock-in or a rate lock on a mortgage?": https://www.consumerfinance.gov/ask-cfpb/what-is-a-rate-lock-en-143/
21. CFPB, "For an adjustable-rate mortgage (ARM), what are the index and margin, and how do they work?": https://www.consumerfinance.gov/ask-cfpb/for-an-adjustable-rate-mortgage-arm-what-are-the-index-and-margin-and-how-do-they-work-en-1949/
22. VA, "Interest rate reduction refinance loan" (IRRRL): https://www.va.gov/housing-assistance/home-loans/loan-types/interest-rate-reduction-loan/