The VA Funding Fee is a one-time payment made by borrowers using the VA home loan program. The amount of the VA funding fee varies based on several factors, including the type of loan, the amount of the loan, whether it's the first time or a subsequent use of a VA loan, and the down payment amount. Here are the tables for the 2024 VA Funding Fee rates:
| Down Payment | First Time Use | Subsequent Use |
|---|---|---|
| None | 2.15% | 3.30% |
| 5% or more | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
| Usage | Funding Fee |
|---|---|
| First Use | 2.15% |
| Subsequent Use | 3.30% |
| Loan Type | Funding Fee |
|---|---|
| IRRRL | 0.5% |
| Loan Type | Funding Fee |
|---|---|
| Loan Assumptions | 0.5% |
| Manufactured Home Loans | 1.0% |
| Native American Direct Loan (NADL) | 1.25% |
The VA Funding Fee is a one-time fee paid directly to the Department of Veterans Affairs (VA) to support the VA home loan program. This fee is required for most borrowers and is used to fund the program, making it possible for the VA to offer competitive rates and benefits without requiring mortgage insurance.
The VA Funding Fee is a percentage of the loan amount and can be paid in cash at closing or rolled into the loan. If the fee is rolled into the loan, it will increase the borrower's monthly payments and the total amount paid over the life of the loan.
Certain borrowers may be exempt from paying the VA Funding Fee. These include:
The funding fee is not required for veterans who are eligible for or already receiving VA compensation for a service-connected disability. However, this exemption must be documented with a VA Certificate of Eligibility (COE).
The VA funding fee is an essential component of the VA home loan program, ensuring that it remains self-sustaining and continues to provide benefits to future veterans. Understanding the rates and how the fee can be paid helps borrowers make informed decisions when using their VA loan benefits. For more detailed information or specific scenarios, it is advisable to consult with a VA loan expert or visit the official VA website.
Alpine Mortgage provides VA loans in California, Connecticut, Florida, New Jersey, New York, Pennsylvania and Texas. Call us today at (800) 876-5626 to speak with one of our VA home loan specialists or click here to have one of our VA loan specialists contact you.
The VA Funding Fee is a percentage of the loan amount and varies based on factors such as the type of loan, down payment amount and whether it is the borrower's first or subsequent use of the VA loan benefit.
Yes, the VA Funding Fee can be rolled into the loan. However, this will increase the borrower's monthly payments and the total amount paid over the life of the loan.
To prove your exemption from the VA Funding Fee, you must provide a VA Certificate of Eligibility (COE) that documents your eligibility for VA compensation for a service-connected disability.
Yes, the VA Funding Fee rates are subject to change based on Congressional legislation.
No, the VA Funding Fee is different from other closing costs associated with a VA loan, such as appraisal fees, credit report fees, and title insurance. These closing costs are not set by the VA and may vary depending on the lender and location of the property.
Yes, the VA Funding Fee is set by the Department of Veterans Affairs and is the same for all lenders offering VA loans.
Yes, the VA Funding Fee can be included in both cash-out refinance loans and IRRRLs, and the fee rates differ depending on the loan type and usage.
As of the current tax regulations, the VA Funding Fee is tax-deductible. Borrowers should consult a tax advisor for personalized advice.
