VA Home Loan Funding Fee
Most veterans pay an insurance premium called the VA Funding Fee (see exception below) as a part of their VA home loan. This fee allows the VA to continue insuring VA home loans.
The Funding Fee charged depends upon several factors. They included the veterans level of service, the type of transaction (purchase or refinance), how many times the veteran has used their VA mortgage benefits, the veteran’s disability status with VA and the down payment the veteran makes on a purchase.
VA Funding Fee Rate Table
Funding Fee Table for VA Purchase
Funding Fee Table for VA Refinance
Important Funding Fee Exemption:
When the VA considers a Veteran disabled they are exempt from paying a funding fee.
Sample Funding Fee Calculation
Determining what your VA Funding fee is simple. In fact, it takes just 3 steps to find out the total cost of your VA Funding Fee
- VA Base Loan Amount
The very first step is determining your VA Loan amount. Whether on a purchase, cash out refinance or VA Streamline (IRRRL), figuring out your loan amount is step 1. If an exact loan amount is not known you can just use a best estimate for this step.
- VA Funding Fee
After figuring your base loan amount, you then need your VA Funding Fee Rate. If you are Exempt from the funding fee your Funding Fee Rate is 0%. Otherwise, for all non-exempt veterans you want to refer to the VA Funding Fee Table above. Locate the Funding Fee Rate that applies to you and your scenario.,
- Funding Fee Math
Now that you have both your base loan amount and VA Funding Fee Rate you are ready to calculate your VA Funding Fee total cost. Simply multiply your VA base loan amount by your VA Funding Fee Rate. For example:
$450,000 (VA base loan) X 2.60% (Va Funding Fee Rate) = $11,700 VA Funding Fee Total Cost
Arizona VA Loan Resources:
Team Phone: 602.435.2149
Team Email: Team@JeremyHouse.com