Good news! Starting April 7th 2023 VA has announced the reduction in VA funding fees for VA loans.

Washington State New VA funding fee schedule for VA loans

A VA funding fee is a fee charged by the Department of Veterans Affairs (VA) to help fund the VA home loan program.

The VA home loan program offers eligible veterans, active-duty service members, and some surviving spouses the opportunity to purchase a home with no down payment and lower interest rates than other types of home loans.

The VA funding fee is typically a one-time fee that is added to the total loan amount. The fee amount varies depending on several factors, such as the type of loan, the veteran’s service history, and the size of the down payment. For example, the funding fee for a first-time use of a VA loan with no down payment is 2.3% of the loan amount for regular military and 2.4% for National Guard or Reserve members. However, the fee can be lower for veterans who make a down payment of at least 5% of the loan amount.

The VA funding fee helps to offset the cost of the VA home loan program, which does not require mortgage insurance and offers other benefits to eligible veterans. The fee is a percentage of the loan amount and can be paid in cash at closing or added to the loan amount. Some veterans, such as those with service-connected disabilities, may be exempt from paying the funding fee.

It’s important for veterans who are considering a VA home loan to understand the funding fee and how it may affect their total loan amount. The VA funding fee can be a significant cost, but it is also an important part of the VA home loan program that helps to make homeownership more accessible for eligible veterans.

For more information contact Kevin Tinsley at kevin@vahomeloans.com