VA Funding Fee

1. VA Funding Fee Any Veteran that ever uses a VA Home Loan will pay a VA Funding Fee. There are exceptions to this which we will cover shortly. Simply stated the VA Funding Fee is fee required by law which makes Veterans contribute towards the cost of using the his or her VA Home Loan benefit. Typically, the VA Funding Fee is paid 3 ways…Financed into the loan, paid for out of pocket, or paid by the seller. In my experience, most Veterans have opted to finance the VA Funding Fee into their loan amount so they can avoid paying the VA Funding Fee out of pocket. Let’s talk about how much this VA Funding Fee will cost you, the Veteran. For a first-time user, the VA Funding fee is typically 2.15% of the loan amount. However, for a first-time user that happens to be a Reservist or National Guard the VA Funding Fee goes up slightly to 2.4%. Anybody that has used a VA Home Loan more than once is considered a subsequent user and is subjected to a higher VA Funding Fee. For these Veterans using a VA Home Loan for a second time or more are required to pay a 3.3% VA Funding Fee. There are ways to reduce the VA Funding Fee or possibly not pay it at all. To reduce the VA Funding Fee the Veteran has the option of putting anywhere from a 5%-10% down towards the purchase of their home. If their Veterans puts as little as 5% down the VA Funding Fee will be reduced to 1.5% and if the Veteran puts down 10% The VA Funding Fee will be reduced to 1.25%. As you can see the VA encourages Veterans to put money down towards the purchase of their home if they are able. For Disabled Veterans, meaning you are have a service connected disability from the VA and are as little as 10% rated your VA Funding Fee is waived. If a Veteran and have this benefit it can literally save your tens of thousands of dollars over the life of the loan. Keep in mind you must prove this to your lender for it to be waived. To do so, simply provide a copy of your VA service connected disability paperwork to the company originating your VA Home Loan to get your VA Funding Fee waived. For more information about the VA Funding Fee and your VA Home Loan please click on the link below and fill out an application and we can follow up with you shortly thereafter. https://www.valoansforvets.com/apply/ Semper Fidelis, Jimmy Vercellino