This VA funding fee amount will vary
The VA funding fee you pay depending upon the type of VA loan you are getting (purchase or refinance), whether this is the first or second time you are getting a VA loan, if you are a disabled veteran, your down payment size, and if you served active duty or in the National Guard, or Reserves.
The funding fee for second time, or more, known as a VA subsequent Funding Fee is a bit more expensive. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment.
If you have at least a 10% disability due to military service, the VA funding fee is waived.
The VA funding fee on a VA cash out refinance is more expensive yet, while the VA funding fee on a VA IRRRL streamline refinance is rather low.
How you pay your VA funding fee
To pay your VA funding fee, you have a few options. You can roll it into your new loan, you can pay it cash, or you can possibly even have the seller pay it.
The most common way is to roll it into your new loan amount. For example, if you buy a home for $100,000 with zero down payment, and have a 2.30% funding fee (see chart below), your actual mortgage would be $102,300.Confused? Don't worry, just contact us at (651) 552-3681. One of our VA Loan Specialists will be happy to break down the numbers, and show you how this works for your individual situation.
We are not acting on behalf of, or under the direction of the VA or the Federal Government. The Veterans Administration does not lend directly to the public, only through approved lending institutions like us here at Cambria Mortgage.
The Department of Veteran Affairs requires mortgage companies who offer VA Loans go through a stringent approval process. We are proud tp a VA approved mortgage lender and are proud to help military families use their VA Loan Benefits.
Equal Housing Lender, Cambria Mortgage NMLS# 322798. Our lending services provided only in the following states: Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, Colorado, and Florida. This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. The information here may not be up-to-date and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal and title report. © 1998 - 2024, Joe Metzler, NMLS 274132
