What exactly is the VA funding fee?
First, what is a VA mortgage loan? It is a mortgage loan insured by the U.S. Department of Veterans Affairs for active or retired military, some surviving spouses and some civilian personnel who have worked for the military. It provides up to 100% financing on a home purchase or refinance, and it has no monthly mortgage insurance.
The VA is able to insure these loans by collecting a funding fee – a one time fee that can be added to the loan amount at closing. The amount of that funding fee will vary depending on certain factors, and it can be waived if the veteran was disabled while on active military duty. Take a look at the most recent charge below for various scenarios:
In order to determine which funding fee is applicable to you, your loan originator will help you fill out a certificate of eligibility to submit to the VA. You will need your DD-214 to start this process.
Contact me if you have any questions about the VA funding fee, VA financing, or how it can benefit you.