VA LOAN FUNDING FEE
THE VA LOAN FUNDING FEE is a mandatory fee charged by the VA on all purchase and refinance loans. It's the VA's version of mortgage insurance to help offset the cost associated with VA Loan Foreclosures. This fee is paid in one lump sum upon closing of a VA Home Loan and there are no reoccurring monthly fee's added to the payment.
The VA Funding Fee is charged based on a few different scenarios. The following lays out the amount of funding free required:
VA First Time Buyer - Regular Military - Purchase & Construction Loans:
-
First Time Borrowers with no down down payment: 2.15%
-
With up to 10% down Payment: 1.5% of the loan amount.
-
Over 10% down payment: 1.5% of the loan amount.
VA Second Time Buyers with no down payment:
- With no down payment: 3.3% of the loan amount.
- With up to 10% down payment: 1.5% of the loan amount.
- With over 10% down payment: 1.25% of the loan amount.
National Guard and Reserves - First Time Buyers with no down payment:
-
With no down payment: 2.4% of the loan amount.
-
With up to 10% down payment: 1.75% of the loan amount.
-
With over 10% down payment: 1.5% of the loan amount.
National Guard and Reserves - Second Time Buyers with no down payment:
- With no down payment: 3.3% of the loan amount.
- With up to 10% down payment: 1.75% of the loan amount.
- With over 10% down payment: 1.5% of the loan amount.
Refinance Loans: Debt Consolidation, Cash Out - Regular Military:
- First Time borrowers: 2.15% of the loan amount.
- Second Time Borrowers: 3.3% of the loan amount.
- National Guard/Reserves: 2.4% of the loan amount.
- National Guard/Reserves
Refinance Loans: Debt Consolidation, Cash Out - National Guard/Reserves:
- First Time borrowers: 2.4% of the loan amount.
- Second Time Borrowers: 3.3% of the loan amount.
Other:
- VA Streamline Refinance Loans (URRL): .50% of loan amount.
- Manufactured Home Loans: 1.0% of the loan amount.
BORROWERS EXEMPT FOR PAYING VA FUNDING FEE:
The following are borrowers who may qualify for a VA Funding Fee exemption: (Note: There may be additional restrictions and the VA has the final say on who does and does not get a VA funding Fee Exemption)
- Veterans receiving VA compensation for service-connected disabilities.
- Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
- Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).
