VA Funding Fee
The VA funding Fee is a small percentage of your loan that is paid to Veterans Affairs. This funding fee is what allows veterans to take advantage of benefits like no money down to purchase a house or no private mortgage insurance payments. The funding chart below will go over all of the different funding fees you would pay depending on the type of VA loan you are looking to get.
VA Funding Fee Table for Interest Rate Reduction Refinance Loan
| Loan Type
|
Percentage
|
|---|---|
| IRRRL (Interest Rate Reduction Refinance Loan) | .50% |
| Manufactured Home Loans (NOT permanently affixed) | 1.00% |
| Loan Assumptions | .50% |
VA Funding Fee Table for Cash-Out Refinance
| Veteran Type
|
Percentage for First Time Use
|
Percentage After First Time
|
|---|---|---|
|
Military
|
2.15% | 3.3% |
|
Army Reserves or the National Guard
|
2.4% | 3.3% |
VA Funding Fee Table for Purchase and Construction Loan
| Veteran Type
|
Down Payment
|
Percentage for First Loan
|
Percentage After First Time
|
|---|---|---|---|
|
Military
|
None 5% or more 10% or more |
2.15% 1.50% 1.25% |
3.3% 1.50% 1.25% |
|
Army Reserves or National Guard
|
None 5% or more 10% or more |
2.4% 1.75% 1.5% |
3.3% 1.75% 1.5% |
VA Funding Fee Questions and Answers
Do I have to pay the Funding Fee Separately?
You are not required to pay your funding fee upfront. In fact, most people will roll this fee onto the loan. One of the biggest reasons people get a VA loan is because you don’t need any money down. This is the same case when you refinance.
Do Veterans receiving disability have to the funding fee?
Veteran’s affairs dictates Veterans receiving any disability benefits (payments) or are considered at minimum 10% disabled are e xempt from the funding fee.
I have cash, can I take care of the funding fee now?
You are not required to roll the funding fee onto the loan. If you want to take care of it at the time of closing you can.
Who sets the funding fee?
The Veteran funding fee is set by Veteran’s Affairs not by your lender. Your lender is going to set costs like the interest rate they are offering etc…
Do I have to pay any other fees besides the funding fee?
Many lenders will cover the additional costs that come with a purchase or refinance. The lenders cannot charge you any broker or lender fees.
As a surviving spouse of a Veteran, am I exempt from the funding fee?
If you are a surviving spouse of any Veteran that died during their service or died from a service related disability then you are still able for VA benefits and you are considered exempt from the va funding fees.
Today’s VA loan Funding Fee
To learn more about the VA refinance funding fee and how you can get started with the refinance process please fill out a simple web form and one of our loan officers will contact you.
