VA Approved Lender USAVA | NMLS ID 966439 | MB 0921703
Dec
22 2015

Funding fee: who pays what?


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banner-resourcesThe VA home loan program allows military families to purchase a home without a down payment. However, any military member using the VA Home Loan Guaranty, must pay a funding fee.

The VA funding fee is a percentage of the loan that varies depending on the loan type and military category. The funding fee is applied to any VA loan, including IRRL.

Borrowers have two options:

The fee must be payed in full at closing.

The VA funding fee is NOT considered a down payment for a loan.

Veterans are exempt from the fee if they are:

Regular military members pay a 2.15 percent fee while Reserves and National Guard members pay 2.4 percent.

For the latest chart of funding fee guidelines, click here.five star rated lender