The 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.