Questions? (866) 240-3742
Questions? (866) 240-3742
Posted on: January 5, 2017
VA home loans require an upfront, one-time payment called the VA funding fee. The fee is a percentage based on the loan amount. VA home loan applicants can pay all or part of the fee in cash, or wrap it into the loan amount to reduce out-of-pocket expenses. Here are charts that show common funding fee amounts.
First Time Use, Purchase & Construction Loans
| Down Payment | Veteran/ Active Duty |
Reservist/ Nat. Guard |
Eligibility |
| Less than 5%* | 2.15% | 2.40% | Check Eligibility |
| 5% to 9.99% | 1.50% | 1.75% | Check Eligibility |
| 10% or more | 1.25% | 1.50% | Check Eligibility |
*Including Cash-Out Refinance Loans
Check your VA home loan eligibility here.
Second Time Use, Purchase & Construction Loans
| Down Payment | Veteran/ Active Duty |
Reservist/ Nat. Guard |
Eligibility |
| Less than 5%* | 3.30% | 3.30% | Check Eligibility |
| 5% to 9.99% | 1.50% | 1.75% | Check Eligibility |
| 10% or more | 1.25% | 1.50% | Check Eligibility |
*Including Cash-Out Refinance Loans
Click here to check your VA home loan eligibility.
Streamline Refinance / IRRRL (Interest Rate Reduction Refinance Loan)
| Type of Loan | Veteran/ Active Duty |
Reservist/ Nat. Guard |
Eligibility |
| 1st Time Use | 0.50% | 0.50% | Check Eligibility |
| 2nd Time Use | 0.50% | 0.50% | Check Eligibility |
Other Types of VA Loans
| Type of Loan | Veteran/ Active Duty |
Reservist/ Nat. Guard |
Eligibility |
| Assumption | 0.50% | 0.50% | Check Eligibility |
| Manufactured Home | 1.00% | 1.00% | Check Eligibility |
The big benefit to a VA loan is that the Veteran’s Administration guarantees the lender against loss in the case of loan default by the borrower. Lenders are willing to approve a loan with no down payment or equity in the home, as long as the borrower meets loan guidelines.
Funding fees vary widely, from 0.5% to 3.3% of the loan amount, depending on the veteran’s service and loan type. The charts above show funding fee amounts from the VA Handbook for some of the major categories.
Some factors that affect the VA funding fee are whether the borrower is on active duty, a veteran of the regular military, Reserves or National Guard; also, the length of service, and the time at which he or she served. Another factor is whether the VA loan will be a “subsequent use” of the benefit, meaning the veteran has opened a VA loan before. Some veterans are even exempt from the funding fee, if they have a service-connected disability as determined by VA.
Click here for your personalized VA loan rate quote.
VA funding fees are small compared to the home loan cost savings veterans enjoy. The funding fee sustains the VA home lending program and ensures future veterans can receive the same benefit.
The VA home loan program is self-sustaining and does not use taxpayer dollars or use funds from other VA benefit programs. Thanks to the funding fee, VA home loans are an affordable and long-term home buying option for veterans and servicemembers.
The VA home loan program is an excellent resource for active duty military personnel and non-active duty veterans. Take advantage of your benefits by calling (866) 240-3742 or completing an online rate quote request.
To learn more about available home loan programs, let us guide you through the process. Call (866) 240-3742.
Here are some links to additional resources
