Current Funding Fee Charts for VA Guaranteed Loans
The VA funding fee is required on most VA home loans. This fee goes to the Veteran’s Administration and is used to defray the cost of the VA loan program. The fee is not due at loan application or during the loan process. It is collected by your lender when the loan closes, then the lender forwards the fee to the VA.
Fortunately, this fee can be financed into the loan amount, which allows qualified borrowers to buy or refinance a home with little or no money out-of-pocket.
Funding fees vary widely, from 0.5% to 3.3% of the loan amount, depending on the veteran’s military service and desired loan type. The funding fee also varies depending on whether veterans have used their home loan benefit before or if they have a service-connected disability. The charts below show funding fee amounts for some of the major categories.
Keep in mind that the below charts don’t cover every situation. To find out the amount of your funding fee, call 888-516-9990 or request more information.
First Time Use, Purchase & Construction Loans
| Down Payment Amount | Veteran/Active Duty | Reservist/National Guard |
|---|---|---|
| Less than 5%* | 2.15% | 2.40% |
| 5% to 9.99% | 1.50% | 1.75% |
| 10% or more | 1.25% | 1.50% |
*Or any first-time use cash-out refinance loan.
Subsequent Use, Purchase & Construction Loans
| Down Payment Amount | Veteran/Active Duty | Reservist/National Guard |
|---|---|---|
| Less than 5%* | 3.30% | 3.30% |
| 5% to 9.99% | 1.50% | 1.75% |
| 10% or more | 1.25% | 1.50% |
*Or any subsequent use cash-out refinance loan.
Used a VA loan before? Call 888-516-9990 to see if the subsequent use fee applies to you.
Streamline Refinance / Interest Rate Reduction Refinance Loan (IRRRL)
| Type of Loan | Veteran/Active Duty | Reservist/National Guard |
|---|---|---|
| First time use | 0.50% | 0.50% |
| Subsequent use | 0.50% | 0.50% |
Qualify for your VA streamline refinance here.
Other Types of VA Loans
| Type of Loan | Veteran/Active Duty | Reservist/National Guard |
|---|---|---|
| Assumption | 0.50% | 0.50% |
| Manufactured Home, not affixed | 1.00% | 1.00% |
There may be situations that fall outside these general guidelines. To determine your specific funding fee, call 888-516-9990 or contact us today.
Why Does VA Require a Funding Fee?
The Veteran’s Administration guarantees that it will repay the lender financial losses up to a certain amount if the borrower defaults on the loan. This guaranty comes at a high cost to the VA, especially in a down housing market. The VA funding fee helps the financial strength of the VA home loan program, and ensures it will be around for future veterans.
Considering that VA home loans require no down payment and no monthly mortgage insurance, the relatively small one-time funding fee is a much lower cost than the fees associated with FHA, USDA, and conventional loans.
VA Home Loan Quotes are Freely Available
The VA home loan program is an excellent resource for active duty military personnel and non-active duty veterans. Take advantage of your benefits.
- Loan amounts up to $417,000.00
- 15, 25 or 30 year loan terms
- Up to 6% seller-paid closing costs allowed
- No monthly mortgage insurance
- Finance up to $6000 in energy efficient improvements
More Information About VA Home Loans
To learn more about available home loan programs, let us guide you through the process. Call 888-516-9990.
Here are some links to additional resources
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VA Home Loan Programs
For veterans who want to refinance their homes. Percentage rates are the lowest in decades.
For veterans who want to refinance and get additional cash-out of their home.
For veterans who want to buy a new home. VA loans require No down-payment.
National VA Mortgage Rates
Sunday, May 19, 2013
| 30 Year Fixed | 3.60% APR |
| 30 Year FHA | 3.31% APR |
| 15 Year Fixed | 2.93% APR |
| 5/1 ARM | 3.01% APR |
Your individual VA rates may vary. For a customized, no-obligation quote, complete this form. It's free.
