Quick Answer: What Is The VA Funding Fee For First Time Use?

How is the VA funding fee calculated?

The VA funding fee is expressed as a percentage of the loan amount.

For regular military borrowers with no down payment, the funding fee is 2.15%.

The fee increases to 3.3% for borrowers with previous VA loans.

For those with a down payment of 5% to 9%, the funding fee is 1.5%..

Is the VA funding fee worth it?

“Any kind of upfront fee on a government home loan is effectively a de facto down payment,” says Bowden. … But even though the VA Funding Fee can make purchasing or refinancing a home slightly more expensive, the benefits of VA loans can often outweigh the initial costs, making a VA home loan worth considering.

Why do sellers not like VA loans?

VA loans come with red tape, appraisal delays and fees borne by sellers instead of buyers — all reasons offers are being rejected, agents say. In addition, real estate agents and veterans say, some sellers reject offers because of misconceptions about the VA program.

Is FHA or VA loan better?

If you look at the numbers you can see that the VA requires a lower down payment — nothing versus 3.5 percent. The upfront funding fee for VA loans is typically higher than the upfront mortgage insurance premium for FHA loans — but unlike the FHA the VA has no annual premium, a substantial savings.

What is the VA funding fee for subsequent use?

(If you have, a new loan is called “subsequent use.”) Fees for a first VA purchase loan are 2.3% with a zero down payment, 1.65% with a down payment of 5% to 9.9%, and 1.4% with a down payment of 10% or more. The funding fees for a VA cash-out refinance loan are the same as for a purchase loan.

Is the VA funding fee a one time fee?

The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance.

What are the new VA funding fees?

VA funding fees are based on a percentage of the loan amount, but not all loans require the same percentage. Funding fees for home buying range from 1.4 percent to 3.6 percent of the loan amount. Funding fees for a VA refinance range from 0.5 percent to 3.6 percent.

Who is exempt from VA funding fee?

Veterans who were injured while in service are exempt from paying the VA funding fee if they receive disability compensation or have a disability rating of 10% or higher. Surviving spouses of veterans who died in the line of duty also qualify for a funding fee exemption.

How do I get my VA funding fee waived?

According to the VA, you may be exempt from paying the VA funding fee if:You’re receiving VA disability income for a disability related to your military service.You’re eligible to receive disability income for a service-related disability but instead receive retirement or active-duty pay.More items…•

Can I get my VA funding fee back?

You may be eligible for a refund of the VA funding fee if you’re later awarded VA compensation for a service-connected disability. The effective date of your VA compensation must be retroactive to before the date of your loan closing.

Who pays closing costs on VA loan?

VA buyers can ask the seller to pay for — or share — some or all of your closing costs, including discount points, the VA appraisal, credit report, state and local taxes and recording fees. Seller concessions. You also may ask a seller to pay other closing-related expenses, up to a limit of 4% of the loan amount.