VA Funding Fee: Everything You Need to Know
The Truth Behind the VA Funding Fee.. Veterans are exempt from paying traditional mortgage fees. These payments are called "non-allowable costs". While veterans who enroll for a VA loan are free from most financial obstacles that most potential homebuyers aren't, they may still have to pay the VA funding fee. Below, you'll learn all about the VA funding fee to determine your eligibility and how much you could spend.
What is the VA Funding Fee? The VA funding fee is a VA administrative fee that applies to all VA purchase and refinance loans. Unlike PMI (conventional) and MIP (FHA), the funding fee is a one-time payment. It can be rolled into the loan amount or paid at closing.
Is the VA Funding Fee Required? Not always. If the veteran receives disability compensation, the fee could be waived by the VA. A Certificate of Eligibility will indicate a waiver.
How Much is the VA Funding Fee? Traditionally, it's 0.50%-3.6% The amount of the funding fee is determined by the loan purpose and down payment. You can refer to the table below for precise figures.
Want to Learn More? If you still have questions about the VA funding fee and have a client that could use our expertise, give us a call today at (901) 759-4400 to be paired with the right loan officer. If you want to pass this helpful information along to your colleagues and clients, click here to download this helpful guide for understanding the VA funding fee.