Who may pay it
Many VA borrowers pay a funding fee, but some veterans and surviving spouses may qualify for an exemption under VA rules.
VA funding fee
Know how the VA funding fee affects the loan structure.
The VA funding fee supports the VA home loan program. The applicable percentage can depend on the transaction, prior use, down payment, and exemption status.
Financing the fee
For many VA transactions, the funding fee can be financed into the loan rather than paid entirely in cash at closing.
Down payment impact
For certain transactions, the funding-fee percentage can change based on the amount of down payment.
Prior VA use
First use versus subsequent use can affect the funding-fee percentage in some scenarios.
No monthly PMI
The funding fee is different from conventional monthly PMI. VA loans generally do not carry conventional monthly mortgage insurance.
Verify the scenario
The calculator can estimate a fee, but the final amount should be confirmed through the formal VA loan process.
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