Q: HOW DOES THE VA FUNDING FEE WORK?
Hey all, Tony Dayton here with Veterans Lending Group. Today we are going to be talking about the VA funding fee. The VA funding fee covers the cost of maintaining the VA loan program and goes to the Department of Veterans Affairs directly and here is what that schedule looks like.
For those that served active duty, the first loan it is 2.15% of the loan amount and each loan after would be 3.3%. This is typically rolled into your loan.
However, if you come in with 5-10% down it would be 1.5% and 10% or more down would be 1.25% of the loan amount. As you can see there is a bit of a different schedule for our National Guard and Reservists.
Good news though, if you are receiving a service connected disability of 10% or more, you are exempt from the funding fee.
For any questions and special circumstances please comment below so we can get you squared away.