11/18/2016 0 Comments A Brief Guide to VA Funding FeeAlthough VA home loans are an economical loan type for U.S. veterans, they involve a funding fee that veterans have to pay when they take a VA loan or refinance it. The amount of VA funding fee the applicant may have to bear depends on numerous factors that include the borrower’s service type, whether they have previously secured a VA loan, and more. Through this blog post, you’ll learn about the VA funding fee - primarily how much of funding fee you need to pay - based on your service type.
General Factors that Determine the Fee Depending on the loan amount, the VA funding fee may vary from 1.25 to 3.33 percent of the total loan amount. The amount is usually higher in case of refinancing. Other factors that determine the VA funding fee include:
As mentioned earlier in the blog, the VA funding fee is different for military personnel with different service types. Reservists and National Guard members pay slightly more VA funding fee than regular military members. Here’s a brief breakdown of the fee according to their service types. Regular Military Members
Reserve or National Guard Members
The above funding fee--both for regular and reserve members--is applicable if the applicant is securing the loan for the first time. If, however, they are taking the loan for the second time, they have to pay more funding fee. Who is Exempted? The VA allows certain veteran applicants to exempt the fee. These include:
Conclusion Regardless the VA loan amount, VA home loan applicants can choose to finance the VA funding fee with the loan amount, instead of paying it in cash. A VA approved lender can provide with more detailed information on these elements to help ensure your home-purchase journey remains hassle-free. In addition, a professional banking officer can always help you with more information on closings costs and if you qualify to exempt them.
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