VA Funding Fee

VA Loan Funding Fee Information

VA funding fees are a variable fee that is paid to the Veteran's Administration depending on a borrower's military history, service related disabilities, down-payment, and prior VA loan history. For those who qualify with active duty status:

• The VA funding fee is set at 2.15%* for a no down payment loan. This fee rate is for first-time users only.
• The funding fee increases to 3%* for second-time users purchasing a home with no down payment.
• If you can put 5% down, you can get the funding fee reduced to 1.5%*.
• If you put 10% down, the funding fee goes to 1.25%*.

The fee is different for a veteran that was in the Reserves or National Guard. For this group:

• The fee is 2.4%* for first time users with no down payment
• 5% down payment reduces the fee to 1.75%*
• 10% or more down payment reduces the fee to 1.5%*
• For second-time users not making a down payment, the fee is 3.3%*
• 5% down payment, the fee goes to 1.75%*
• 10% down payment, it falls to 1.5%*

On the streamline refinance program the funding fee is always reduced to 0.5%*. This low amount is another reason why the streamlined refinance (IRRRL) can be a very attractive to the veteran home owner.

The following persons are exempt from paying the funding fee:

• Veterans receiving 10% or more VA compensation for service related disabilities
• Surviving spouses of veterans who died in service or from service related disabilities

* Funding fees are set up by the Veteran’s Administration. For more information on VA Funding Fees, visit www.homeloans.va.gov/docs/funding_fee_tables.doc. Example: For $150,000 loan; 360 monthly payments of $809.26 are based on principal and interest only, and an annual percentage rate (APR) of 5.068%. APR is subject to borrower qualification and subject to change. Third party fees may apply.