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VA Loan Funding Fee Exemption

The Veteran’s Administration (VA) Loan is an excellent loan with unique benefits listed below:VA Loan Captain

  • 100% Financing (although the more you put down, the lower the VA Funding Fee)
  • No PMI (Private Mortgage Insurance)
  • VA Appraisal makes sure home is safe, sound, and sanitary

The VA Funding Fee is usually a cost that VA benefit holders are unaware of, but it is a fee that should be known about upfront. Most lenders will allow you to put the VA Funding Fee into the loan balance which still allows for a zero down payment. But don’t confuse zero down payment with no closing costs. You will still incur closing costs, but a seller credit or a lender credit may help offset those costs. If you are on active duty or a veteran, the VA Funding Fee for first time purchasers are as follows:

  • Less than 5%, Funding Fee is 2.15%
  • 5% to 9.99%, Funding Fee is 1.50%
  • 10% or more, Funding Fee is 1.25%

For Guard and Reservists, the fee is slightly higher.

An exemption to the VA Funding Fee exists for anyone with a 10% or more disability rating.

If you are interested in utilizing your VA Home Loan benefits, please contact us, and we will put you in touch with a reputable VA Lender that will help you achieve your homeownership goals.