The VA funding fee is a governmental fee expected of VA borrowers. Although, a few Veterans are excluded, and the fee differs by using the VA loan and other elements.
Here we will be examining the intricate details of the VA loan funding fee, recent charts, who is exempted, and a modest bunch of exceptional situations.
VA loans provide qualified Veterans and military spouses one-of-a-kind advantages to assist them with accomplishing home ownership. From a $0 down payment and no PMI to a reliably lower interest rate, the VA loan is, in many cases, the ideal decision available today.
To ensure this program is available for future Veteran home buyers, the Department of Veterans Affairs encourages most lenders to pay the VA loan funding fee.
A few veterans are exempted from paying a funding fee for any VA home loan. We will discuss those exempted from paying this fee in a later sub-heading.
Down Payment First-Time VA Loan Use Subsequent Use
No Down Payment 2.3% 3.6%
5% or more 1.65% 1.65%
10% or more 1.4% 1.4%
For standard mortgage or cash out refinance, first-time borrowers will pay a 2.3% VA loan funding fee, while regular borrowers pay 3.6%. For Interest Rate Reduction Refinance Loans, a VA Streamline refinance (a situation where you’re refinancing your ongoing VA loan into another VA loan), the financing charge is 0.5% for all borrowers.