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VA home loans offer an affordable way for Veterans and their families to buy homes. While most VA loans do not require any money for a down payment, nor any closing costs, buyers are expected to pay a VA loan funding fee. Designed to help keep the VA loan program running, the funding fee is a percentage of the loan amount that is paid to the Department of Veterans Affairs. It also ensures that the loan guaranty program will continue to be an option for millions of military families for generations to come.

The size of your VA home loan funding fee is determined by how much you’re willing to put down on a house. Your military service history is also a factor, as is your use of the VA home loan benefits in the past. Those who can demonstrate regular military generally pay lower fees than those who have only served in the Reserves or National Guard. This VA loan funding fee chart can help you visualize how fees vary based on cost of the home you’re hoping to buy.

VA Loan Requirements and Exemptions

Funding fees, with some exceptions, are required of all Veterans who buy homes with a VA loan. There is flexibility, though, with how it is paid. Some opt to pay the entirety of the VA home loan funding fee when they close on their house. Others roll the VA funding fee into the home financing, adding to the monthly cost of their mortgage. SoCalVA Homes can help you determine which option is best, and whether or not you may qualify for a funding fee exemption.

Those who receive compensation from the VA because of service-connected disabilities are usually exempt from funding fees. Widows whose partners were killed in the line of service may also be exempt. Of course, no exemption status is always clear cut, so you’ll want to check with the VA to determine your eligibility.

Utilize Our VA Funding Fee Calculator

For a first-time homebuyer who has not used their VA loan benefits in the past, funding fees can be as low as 2.15 percent of the purchase price of the home with no down payment. VA home loan funding fees are generally 3.3 percent or less.A VA funding fee calculator can help you better understand how much you might owe towards your own funding fee.

VA Loan Funding Fee

If you’re confused about VA home loan funding fees and need help understanding how they work, SoCalVA homes can help. We specialize in connecting Veterans with their dream homes. We’ve got plenty of experience handling the red tape associated with VA home loans. In the meantime, browse our website for helpful resources that can help you adequately prepare for the various fees associated with buying your home. With so much helpful information available on our site, it’s worth a look – especially if you have plans to buy a home soon.

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