The VA Funding Fee If you are eligible for the benefits of a VA loan, you are required by law to pay the VA funding fee. The VA funding fee is a percentage of the VA loan that has to be paid to the Department of Veteran’s Affair. This fee is considered a contribution for all the benefits of the VA loan.

You don’t have to worry whether you have the money or not to pay for this fee. You can add it to the loan to finance it, or pay it cash. This fee must be paid when you are closing the loan.

The exemption

Please be aware that there are some exemptions for the VA funding fee rule. If you fall under the following group, you probably won’t need to pay it:

  • If you are a veteran receiving VA compensation for disability.
  • If you are a veteran that haven’t received retirement or active duty pay, and will be eligible for disability.
  • If you are a surviving spouse of a veteran.

The VA funding fee percentage

To determine the VA funding fee for your particular situation, several factors are considered:

  1. The type of loan
  2. Your military category (Active duty/Veteran or National Guard/Reserve)
  3. Your down payment
  4. If you are a first time VA user or not

If you are an active duty service member or veteran, a first time loan user, purchasing a home with $0 down payment, your VA funding fee will be 2.15% of your loan. However, if you are from the Reserve or National Guard your fee will be 2.40% of your loan. At the other hand, if you are a subsequent loan user your VA funding fee will be 3.30% (for both loan categories). For a completed list of the VA funding fee please go to VA funding fee list.

If you are eligible for a VA loan looking for more information about a mortgage loan or a cash-out refinance loan, contact us. We are a reputable mortgage broker in the New York region and we are ready to help you with any of your VA loan needs.

Contact one of our loan consultants to learn more about this program.

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