Q: HOW DOES THE VA FUNDING FEE WORK?
Hey all, this is Tony Dayton here with VLG. Today we are going to be talking about the VA funding fee.
Quick Overview
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.
Structure for Active Duty
For those that served Active Duty, the first loan it is 2.15% of the loan amount and after that, each loan 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.
National Guard and Reservists
As you can see, there is a bit of a different schedule for our National Guard and Reservists.
Exemptions
The good news though is if you are receiving a service-connected disability of 10% or more, you are exempt from the funding fee.
Additional Questions and Special Circumstances
For any questions and special circumstances, please reach out!
