It is important to understand what type of fees you can expect to pay for a VA Loan. Veterans should expect to pay what is called a guaranty benefit which is referred to as the funding fee. The fee charge is set at a certain percent of the loan amount which is usually 2.1 percent. The fee is waived if you meet certain criteria: anyone who suffered a disability during their time of service, if you did not retire from the military but receives service connected disability or a surviving spouse of a veteran who lost their lives during their tour of duty. Since the loans require no down payment and no mortgage insurance, veterans are asked to pay the funding fee if they do not meet the listed qualifications.
Other Fees Associated with a VA Loan
It is important to understand that the lender and not the VA set the interest rates and closing costs. The rates vary from lender to lender but the VA keeps a close eye on private lenders who may try to overcharge. You can share the payment with the seller on the cost of the credit report, appraisal and recording fees. The VA also allows the seller to pay four percent of the Non-Recurring closing costs such as the underwriting fee and the doc preparation fee. Again, with VA loans, the fees are quite reasonable, especially since you are not required to put any money down.
Using a Professional Firm Like MortgageDepot
We are a respected mortgage firm based out of New York. If you feel that you are uncomfortable working with the lender on your loan, then you must call us. We have a team of professionals who specialize in VA Loans. They make certain that the closing costs and fees are lower than conventional loans.