VA Loan Tips

About the VA Funding Fee

There is a "VA funding fee" required by law. A first-time buyer will pay a little over two percent for a 'no money down' loan, and a second time buyer's fee is just above three percent. The reason for the fee includes the idea that the veteran is reducing taxpayer burden by contributing to the cost of his VA mortgage. The higher fee for second-time borrowers presumes that there is equity in the home, or the borrower has had plenty of time to save in order to pay for the extra percentage. There is also a fee for VA refinance loans, and they fall within the same general price guidelines; just above two percent for first-timers and just above three percent for those who borrow again.

While there is a funding fee for a VA home loan, some people are exempt from paying. If you are a veteran getting disability compensation for service-related medical issues, or are entitled to get compensation if you aren't drawing retirement pay, you are exempt from the VA funding fee for your VA home loan. Also, surviving spouses of those who died in the service, or from service related disabilities are also exempt. It doesn't matter in this case whether the spouse has any of their own entitlements. Remember that the VA has the last word on who is exempt, and some issues may be dealt with on a case-by-case basis. If you have any doubts, ask your local VA rep to review your service records (or your spouse's records) and get a determination from the VA.

1. Entitlement to a VA Home Loan
2. Advantages to the VA Guaranteed Loan
3. About VA Loans with Adjustable Rates
4. Getting Pre-approved for Your VA Loan
5. Eligibility for a VA Home Loan Guaranty
6. Your Discharge May Affect Your Chances
7. I Lost My DD214
8. For Those Who Already Have a VA Loan
9. Renewable VA Certificate of Eligibility
10. VA Loan Partial Eligibility
11. VA Loans and Rental Properties
12. VA Loans and Your Debt Ratio
13. Uses for Your VA Loan
14. About the VA Funding Fee
15. Co-signers on VA Loans
16. The Veterans Benefits Act of 2004
17. VA Home Loans and Fair Housing Laws
18. VA Pre-approved but Can't Find a House
19. VA Loan Foreclosures
20. Improving Credit to Enhance VA Loan Eligibility
21. Help for VA Homebuyers
22. VA Loans to Purchase Farms
23. VA Loans for Properties Outside of the US
24. VA Home Loans After a Borrower's Death
25. Selling a VA Loan Property
26. VA Mortgage Payments