Can my closing costs be financed?

The VA funding fee must be paid by the Vet unless he/she qualifies not to have one because of disability. Even though closing costs can’t be directly rolled in the loan; builder credits can accomplish the same objective.

Can closing costs be rolled into the loan?

The VA funding fee must be paid by the Vet unless he/she qualifies not to have one because of disability. Even though closing costs can’t be directly rolled in the loan; builder credits can accomplish the same objective.

Can surviving spouses get a VA loan?

Based on the COE it is possible when a surviving spouse of a Veteran or the spouse of a Veteran who is missing in action or being held as a prisoner of war.

Who pays for which closing costs?

The seller must pay these closing costs (sometimes called “seller’s concessions”): Commission for real estate professionals Brokerage fee Buyer broker fee Termite report (unless you’re using a refinancing loan) You (the buyer) or the seller can negotiate who will pay other closing costs such as the: VA funding fee Loan origination fee Loan discount points or funds for temporary “buydowns” Credit report and payment of any credit balances or judgments VA appraisal fee Hazard insurance and real estate taxes State and local taxes Title insurance Recording fee Note: We require that a seller can’t pay more than 4% of the total home loan in seller’s concessions. But this rule only covers some closing costs, including the VA funding fee. The rule doesn’t cover loan discount points. More VA home loan resources VA home loan types Learn how VA-backed and VA direct home loans work—and find out which loan program might be right for you. Eligibility Find out if you can get a Certificate of Eligibility (COE) for a VA-backed or VA direct home loan based on your service history and duty status.

How much will I pay?

This depends on the amount of your loan and other factors. For all loans, we’ll base your VA funding fee on: The type of loan you get, and The total amount of your loan. We’ll calculate your funding fee as a percentage of your total loan amount. Depending on your loan type, we may also base your fee on: Whether it’s your first time, or a subsequent time, using a VA-backed or VA direct home loan, and Your down payment amount Note: Your lender will also charge interest on the loan in addition to closing fees. Please be sure to talk to your lender about any loan costs that may be added to your loan amount. VA funding fee rate charts Review the VA funding fee rate charts below to determine the amount you’ll have to pay. Down payment and VA funding fee amounts are expressed as a percentage of total loan amount. For example: Let’s say you’re using a VA-backed loan for the first time, and you’re buying a $200,000 home and paying a down payment of $10,000 (5% of the $200,000 loan). You’ll pay a VA funding fee of $3,135, or 1.65% of the $190,000 loan amount. The funding fee applies only to the loan amount, not the purchase price of the home. VA-backed purchase and construction loans Rates for Veterans, active-duty service members, and National Guard and Reserve members If your down payment is… Your VA funding fee will be… First use Less than 5% 2.3% 5% or more 1.65% 10% or more 1.4% After first use Less than 5% 3.6% 5% or more 1.65% 10% or more 1.4% Note: If you only used a VA-backed or VA direct home loan to purchase a manufactured home in the past, you’ll still pay the first-time funding fee. VA-backed cash-out refinancing loans Rates for Veterans, active-duty service members, and National Guard and Reserve members First use After first use 2.3% 3.6% Note: The VA funding fee rates for refinancing loans don’t change based on your down payment amount. If you used a VA-backed or VA direct home loan to purchase a manufactured home, you only need to pay the first-time use funding fee. Native American Direct Loan (NADL) Type of use VA funding fee Purchase 1.25% Refinance 0.5% Note: The VA funding fee rate for this loan doesn’t change based on your down payment amount or whether you’ve used the VA home loan program in the past. Other VA home loan types Loan type VA funding fee Interest Rate Reduction Refinancing Loans (IRRRLs) 0.5% Manufactured home loans (not permanently affixed) 1% Loan assumptions 0.5% Vendee loan, for purchasing VA-acquired property 2.25% Note: The VA funding fee rates for these loans don’t change based on your down payment amount or whether you’ve used the VA home loan program in the past. Other loan closing costs Who determines my loan details? We don’t determine most details of your home loan. Your home loan lender will determine these details of your loan: Interest rate Discount points (fees you may pay to your lender at closing to get a lower interest rate on your loan) Other closing costs These rates may vary from lender to lender. You should know that adding the VA funding fee and other loan costs to your loan could lead to you owing more money than the fair market value of the home. This could reduce the benefit of refinancing since your payment wouldn’t be as low as you may want it to be. It could also make it harder for you to get enough money out of the future sale of the home to pay off your loan balance.

How will I pay the VA funding fee?

You’ll pay this fee when you close your VA-backed or VA direct home loan. You can pay the VA funding fee in either of these ways: Include the funding fee in your loan and pay it off over time (called financing), or Pay the full fee all at once at closing