VA Funding Fee
The VA funding Fee is a small percentage of your loan that is paid to Veterans Affairs. This funding fee is what allows veterans to take advantage of benefits like no money down to purchase a house or no private mortgage insurance payments. The funding chart below will go over all of the different funding fees you would pay depending on the type of VA loan you are looking to get.
Interest Rate Reduction Refinance Loan
| Loan Type | Percentage |
|---|---|
| IRRRL (Interest Rate Reduction Refinance Loan) | .50% |
| Loan Assumptions | .50% |
| Manufactured Home Loans (NOT permanently affixed) | 1.00% |
| Loan Type | Percentage |
Cash-Out Refinance
| Veteran Type | Percentage for First Time Use | Percentage After First Time |
|---|---|---|
| Army Reserves or the National Guard | 2.4% | 3.3% |
| Military | 2.15% | 3.3% |
| Veteran Type | Percentage for First Time Use | Percentage After First Time |
Purchase and Construction Loan
| Veteran Type | Down Payment | Percentage for First Loan | Percentage After First Time |
|---|---|---|---|
| Army Reserves or National Guard | None 5% or more 10% or more | 2.4% 1.75% 1.5% | 3.3% 1.75% 1.5% |
| Military | None 5% or more 10% or more | 2.15% 1.50% 1.25% | 3.3% 1.50% 1.25% |
| Veteran Type | Down Payment | Percentage for First Loan | Percentage After First Time |
Questions and Answers
You are not required to pay your funding fee upfront. In fact, most people will roll this fee onto the loan. One of the biggest reasons people get a VA loan is because you don’t need any money down. This is the same case when you refinance.
Veteran’s Affairs dictates Veterans receiving any disability benefits (payments) are exempt from the funding fee.
For a list of exemptions and additional information regarding the funding fee, reference the VA funding fee rate chart here.
You are not required to roll the funding fee onto the loan. If you want to take care of it at the time of closing you can.
The Veteran funding fee is set by Veteran’s Affairs not by your lender. Your lender is going to set costs like the interest rate they are offering etc…
Many lenders will cover the additional costs that come with a purchase or refinance. The lenders cannot charge you any broker or lender fees.
If you are a surviving spouse of any Veteran that died during their service or died from a service related disability then you are still able for VA benefits and you are considered exempt from the va funding fees.
Today’s VA loan Funding Fee
To learn more about the VA funding fee and how you can get started with the refinance process please fill out a simple web form and one of our loan officers will contact you.
The products or services described in this website do not originate from the Federal Housing Administration (FHA) or any other government agency. Village Capital & Investment LLC is not affiliated with your current lender and any loan information presented was not obtained from your current lender. Estimated payment is for a 30 year fixed rate loan and does not include taxes and insurance. These products may have higher interest rates, more points, or more fees than products requiring documentation. [1] Refinancing may result in higher total finance charges over the life of the loan. Village Capital & Investment LLC NMLS ID: 3317 Arizona Mortgage Banker License No. 0909593.