{"id":1707,"date":"2010-03-08T00:11:14","date_gmt":"2010-03-08T00:11:14","guid":{"rendered":"http:\/\/www.mortgageblogarticles.com\/?p=1707"},"modified":"2010-03-08T00:11:14","modified_gmt":"2010-03-08T00:11:14","slug":"what-is-the-va-funding-fee","status":"publish","type":"post","link":"https:\/\/dev203k.orbitwebx.com\/dev203k\/what-is-the-va-funding-fee\/","title":{"rendered":"The VA Funding Fee and What It Means to You"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-21038\" title=\"VA Funding Fee\" alt=\"\" src=\"https:\/\/dev203k.orbitwebx.com\/dev203k\/wp-content\/uploads\/2013\/12\/iStock_000003465437_ExtraSmall.jpg\" width=\"434\" height=\"276\" srcset=\"https:\/\/dev203k.orbitwebx.com\/dev203k\/wp-content\/uploads\/2013\/12\/iStock_000003465437_ExtraSmall.jpg 434w, https:\/\/dev203k.orbitwebx.com\/dev203k\/wp-content\/uploads\/2013\/12\/iStock_000003465437_ExtraSmall-300x191.jpg 300w\" sizes=\"auto, (max-width: 434px) 100vw, 434px\" \/><\/p>\n<p>Any eligible applicant of a VA mortgage loan is required to pay a <a title=\"VA Funding Fee\" href=\"https:\/\/dev203k.orbitwebx.com\/dev203k\/why-do-i-need-to-pay-a-va-funding-fee\/\">VA Funding Fee <\/a>unless of course they are exempt.\u00a0 This fee is passed directly from the <a title=\"We are a VA Lender - Apply Now\" href=\"https:\/\/dev203k.orbitwebx.com\/dev203k\/application\/\">lender <\/a>to VA and deposited into a pool.\u00a0 The funds collectively make up the insurance or guarantee pool.<\/p>\n<p><span style=\"text-decoration: underline;\">There are a few exceptions that allow for the fee to be waived:<\/span><\/p>\n<ul>\n<li>Veterans who are getting VA compensation due to service related disabilities.<\/li>\n<li>Veterans who would be receiving VA compensation due to service related disabilities if they were not already receiving retirement pay.<\/li>\n<li>Loans for spouses of veterans who passed away in service or because of service related disabilities.<\/li>\n<\/ul>\n<p><strong>VA funding rates have changed over time, but the rates listed in this article are for <a title=\"VA Home Loan Information\" href=\"http:\/\/benefits.va.gov\/HOMELOANS\/index.asp\" target=\"_blank\">VA loans <\/a>that will be closed before October 1, 2011.<\/strong> If you are interested in taking out a VA loan past this date, please feel free to contact us for the current fee amounts.<\/p>\n<p>The amount of the VA funding fee required varies based on the amount of the down payment, whether this is the first time the borrower has taken out a VA loan, and whether the borrower served in active duty or in the reserves or National Guard.<\/p>\n<p>For VA loans, borrowers who have served in active duty are categorized as either a first time user or a subsequent user.<\/p>\n<p><strong>For first time users, the fee structure is set up as follows:<\/strong><\/p>\n<ul>\n<li>No down payment: 2.15% fee<\/li>\n<li>Up to 10% down payment: 1.5% fee<\/li>\n<li>More than 10% down payment: 1.25% fee<\/li>\n<\/ul>\n<p><strong>For subsequent users the fee structure is:<\/strong><\/p>\n<ul>\n<li>No down payment: 3.3% fee<\/li>\n<li>Up to 10% down payment: 1.5% fee<\/li>\n<li>More than 10% down payment: 1.25% fee<\/li>\n<\/ul>\n<p>As you can see, the only change in the fee structures for first time and subsequent users is when the borrower goes with the \u201cno down payment\u201d option.<\/p>\n<p>The difference between the two ends up equaling 1.15%, which is a fairly significant amount of money.<\/p>\n<p>If you are considering taking out a VA loan and would be classified as a subsequent user (meaning you have already taken out a VA loan in the past), then you should strongly consider making a down payment.<\/p>\n<p>For military members who have served in the active duty obtaining cash-out refinancing loans, the fee for first time users is 2.15% while the fee for subsequent users is 3.3%.<\/p>\n<p>The funding fee requirement for both the Reserves and <a title=\"National Gaurd Benefits\" href=\"http:\/\/www.nationalguard.com\/benefits\" target=\"_blank\">National Guard <\/a>members is as follows.<\/p>\n<p><strong>For first time users, the fee structure is:<\/strong><\/p>\n<ul>\n<li>No down payment: 2.4% fee<\/li>\n<li>Up to 10% down payment: 1.75% fee<\/li>\n<li>More than 10% down payment: 1.5% fee<\/li>\n<\/ul>\n<p><strong>For subsequent users the fee structure is:<\/strong><\/p>\n<ul>\n<li>No down payment: 3.3% fee<\/li>\n<li>Up to 10% down payment: 1.75% fee<\/li>\n<li>More than 10% down payment: 1.5% fee<\/li>\n<\/ul>\n<p>For Reserves and National Guard member cash-out refinancing loans, the fee for first time users is 2.4% while the fee for subsequent users is 3.3%.<\/p>\n<p>In addition to the loans listed above, the VA requires funding fees for interest rate reduction loans, also known as IRRLs. The rate for an IRRL is currently set at .5%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any eligible applicant of a VA mortgage loan is required to pay a VA Funding Fee unless of course they are exempt.  This fee is passed directly from the lender to VA and deposited into a pool.  The funds collectively make up the insurance or guarantee pool.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[57],"tags":[],"class_list":["post-1707","post","type-post","status-publish","format-standard","hentry","category-va-mortgage"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The VA Funding Fee and What It Means to You<\/title>\n<meta name=\"description\" content=\"The VA funding fee is explained, and the VA funding fee amount is listed by scenario. 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