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VA Loan Information
COSTS OF OBTAINING A VA LOAN
Funding Fee
A basic funding fee of 2.15 percent must be paid to VA by all but certain exempt
veterans. A down payment of 5 percent or more will reduce the fee to 1.5 percent
and a 10 percent downpayment will reduce it to 1.25 percent.
A funding fee of 2.40 percent must be paid by all eligible Reserve/National Guard
individuals. A down payment of 5 percent or more will reduce the fee to 2.75 percent
and a 10 percent downpayment will reduce it to 1.5 percent.
The funding fee for loans to refinance an existing VA home loan with a new VA home
loan to lower the existing interest rate is 0.5 percent.
Veterans who are using entitlement for a second or subsequent time who do not make
a downpayment of at least 5 percent are charged a funding fee of 3.3 percent.
NOTE: For all VA home loans, the funding fee may be paid in cash or it may be
included in the loan.
Other Closing Costs
Reasonable closing costs may be charged by the lender. These costs may not be
included in the loan. The following items may be paid by the veteran purchaser,
the seller, or shared. Closing costs may vary among lenders and also throughout
the nation because of differing local laws and customs.
- VA appraisal
- Credit report
- Loan origination fee (usually 1 percent of the loan)
- Discount points
- Title search and title insurance
- Recording fees
- State and/or local transfer taxes, if applicable
- Survey
No commissions, brokerage fees or "buyer broker" fees may be charged to the
veteran buyer.
NEED MORE INFORMATION ABOUT VA LOANS?
Veterans seeking more detailed information concerning the VA home loan program
may request VA Pamphlet 26-4
or VA Pamphlet 26-6 from the nearest VA office.
Loan Guaranty personnel at that office will also be pleased to answer specific
questions and provide any other assistance they can.
Remember, VA-guaranteed financing is a benefit which Congress intended eligible
veterans should have. If you are a veteran homebuyer or know of one, it makes
sense to look into the VA loan program as a good way to finance a home
purchase.
FREQUENTLY ASKED QUESTION # 21 [ -more VA Loan questions- ]
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Q: The VA Loan for Home Equity Refinancing - Can I refinance with the VA?
A: " If you own a home and are considering refinancing, VA refinancing may be just what you need. Under the terms of VA refinancing, your current real estate debt is paid out of the proceeds of a new VA mortgage. The requirements? The same borrower must use the same property as before. This type of refinancing is also known as a 'Cash Out"" refinance, and is only good for homes that are used as the owner's residence.
Refinancing is available for up to 90% of the appraised value plus all closing costs in many cases. Your home must have enough equity to cover the loan. These terms may not be available in all states, depending on local lending laws. Check with your local VA rep to learn more."
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not a government agency.
Remember, the VA does not make home loans. They insure the loans that we can assist you in getting.
Let us help you get a VA insured mortgage loan at the lowest possible rates.
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