{"id":4713,"date":"2020-11-18T12:08:46","date_gmt":"2020-11-18T12:08:46","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/?p=4713"},"modified":"2020-11-18T12:10:50","modified_gmt":"2020-11-18T12:10:50","slug":"va-funding-fee","status":"publish","type":"post","link":"https:\/\/dreamhomefinancing.com\/va-funding-fee\/","title":{"rendered":"VA Funding Fee – Calculation and Exemptions"},"content":{"rendered":"

VA Funding Fee<\/strong><\/span><\/h1>\n

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What is the VA Funding Fee?<\/strong><\/span><\/h2>\n

The VA funding fee is an upfront payment made by the borrower on every eligible VA loan. This fee in lieu of a down payment requirement so funds can be returned to the VA to help offset the costs needed to insure the loans.<\/strong><\/span><\/p>\n

How is the VA Funding Fee Calculated?<\/strong><\/span><\/h2>\n

The funding fee follows a standard calculation that is determined by the VA and one that every lender must follow. The funding fee calculation will vary based upon whether it is a purchase, a refinance, a cash out refinance, and also whether this is the first time you are applying for a VA loan.<\/span><\/p>\n

This VA funding fee chart details how the fee is calculated today:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
VA Loan Type<\/strong><\/span><\/td>\nFunding Fee<\/strong><\/span><\/td>\n<\/tr>\n
Purchase –\u00a0 First Use<\/strong><\/span><\/td>\n<\/td>\n<\/tr>\n
0% down\u00a0<\/span><\/td>\n2.30%<\/span><\/td>\n<\/tr>\n
5% down\u00a0<\/span><\/td>\n1.65%<\/span><\/td>\n<\/tr>\n
10%+ down\u00a0<\/span><\/td>\n1.40%<\/span><\/td>\n<\/tr>\n
Purchase\u00a0 – After First Use<\/strong><\/span><\/td>\n<\/td>\n<\/tr>\n
0% down\u00a0<\/span><\/td>\n3.60%<\/span><\/td>\n<\/tr>\n
5% down\u00a0<\/span><\/td>\n1.65%<\/span><\/td>\n<\/tr>\n
10%+ down\u00a0<\/span><\/td>\n1.40%<\/span><\/td>\n<\/tr>\n
Cash Out Refinance<\/strong><\/span><\/td>\n<\/td>\n<\/tr>\n
First Use\u00a0<\/span><\/td>\n2.30%<\/span><\/td>\n<\/tr>\n
After First Use\u00a0<\/span><\/td>\n3.60%<\/span><\/td>\n<\/tr>\n
IRRRL (Refinance)<\/strong><\/span><\/td>\n0.50%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

4 VA Funding Fee Exemptions<\/strong><\/span><\/h2>\n

There are four VA funding fee exemptions that you potentially could be eligible for. Your VA lender would submit the exemption request on your behalf if you meet one of the four exemption requirements:<\/span><\/p>\n

    \n
  1. Veterans who are receiving a service related disability benefit<\/strong> \u2013 if you have a disability claim pending when you close on your loan, you are required to pay the funding fee. If your disability claim is approved after you close on the loan, you will need to ask the VA for a refund<\/span><\/li>\n
  2. Veterans on active duty<\/strong> – If you are still serving in the military, no funding fee will be required.<\/span><\/li>\n
  3. Purple heart recipients<\/strong> – As a “thank you” for your bravery, purple heart recipients are not required to pay a funding fee.
    \n<\/span><\/li>\n
  4. Surviving spouses of Veterans<\/strong> – Surviving spouses of veterans who have served this country also are exempt from the funding fee.<\/span><\/li>\n<\/ol>\n

    Only the VA can decide whether you are eligible for an exemption. Therefore, your lender would need to request this exemption for you. If your lender informs you that your request for an exemption has been denied, it is the VA that has made that decision.<\/span><\/p>\n

    If two veterans are applying for the mortgage and one is exempt, the funding fee is cut in half. However, if the exempt veteran is not contributing entitlement, then the full funding fee must be paid.<\/span><\/p>\n

    Click to speak with a VA lender who can help with your VA loan and a possible funding fee exemption<\/strong><\/span><\/a><\/p>\n