VA Funding Fee
We understand the importance of having a clear and transparent understanding of the VA Home Loan Process and the fees involved. The VA Funding Fee is paid directly to the Department of Veterans Affairs and is the reason they can guarantee this no-money-down loan program. This fee exists so that VA eligible borrowers can enjoy loan benefits such as $0 down financing and no mortgage insurance (PMI) payments.
VA Funding Fee Chart
The VA Funding Fee is calculated by looking at 4 different factors: Loan type (Purchase or Refinance), type of service, down payment (if any) and the use of a prior VA loan product. The charts below determine the amount of your VA Funding Fee.
The funding fee applies only to the loan amount, not the purchase price of the home.
| Purchase First Time Use
|
||
| Down Payment | Active Duty/Retired | Guard/Reserve |
| $0 Down | 2.15% | 2.40% |
| 5-10% Down | 1.50% | 1.75% |
| 10% or More | 1.25% | 1.50% |
| Purchase Additional Use
|
||
| Down Payment | Active Duty/Retired | Guard/Reserve |
| $0 Down | 3.30% | 3.30% |
| 5-10% Down | 1.50% | 1.75% |
| 10% or More | 1.25% | 1.50% |
| Cashout Refinance
|
||
| VA Usage | Active Duty/Retired | Guard/Reserve |
| 1st Time Use | 2.15% | 2.40% |
| Additional Use | 3.30% | 3.30% |
| RRL (Interest Rate Reduction Loan)
|
||
| VA Usage | Active Duty/Retired | Guard/Reserve |
| 1st Time Use | 0.5% | 0.5% |
| Additional Use | 0.5% | 0.5% |
How the Funding Fee is Paid
The VA Funding Fee is typically included in the loan, and it can also be paid by the seller or by the borrower at the closing table.
VA IRRRL
A VA IRRRL is a refinance of an existing VA mortgage. If you are refinancing from any other loan type that is not VA, the loan cannot be an IRRRL and standard underwriting guidelines, funding fees and appraisal requirements may apply.
VA Funding Fee Exemptions
VA borrowers are exempt from paying a funding fee if they receive any disability payments from the VA, are considered at least 10% disabled or are the surviving spouse receiving DIC (Dependency and Indemnity Compensation). The funding fee is also waived if the service member can provide evidence of receiving a Purple Heart.
For more information call us at 855-90-MORTGAGE