VA Funding Fee Chart

February 23, 2012 United States

VA funding fee chart will help you identify how much money you will need to pay after applying for a VA loan. The law requires veterans to contribute to their mortgage by paying funding fees so that taxpayer burden can be reduced. Second-time borrowers usually need to pay for higher fees because the law presumes that they already have equity in the home and they have plenty of time to save money before paying for that extra amount of money. VA refinance loans may also require fees that are usually just above the two percent for first-time borrowers.

An Overview of VA funding fees chart

After looking for the latest VA funding fee chart, you can find out how much money you will need to pay upfront before qualifying for a loan. Funding fees also offer more flexibility because you have the option to finance them or pay them in cash. Upon closing, the veterans will fully earn the fee but they will not receive it as pro-rated funds even if they try refinancing it to another loan. If you are one of the veterans who are not eligible for an exemption, you will be charged the appropriate fee depending on the type of loan you wish to apply for.

The only way to qualify for a VA loan is to pay the required fees as stated in VA funding fee chart 2010. In fact, most veterans already know that a funding fee applies whenever they need to get a loan from the Department of Veterans Affairs. If you understand the entire process of applying for a VA loan, you probably already know that paying for funding fees is standard. Since the government supports VA loans, they also have the right to raise or lower its rates. However, you can still get the lowest rates by shopping around before settling for any loan.

How much is the VA funding fee?

Active service members, veterans, and their families are already familiar with the VA home loans that the Department of Veterans Affairs offers. However, most of them do not know that the government actually shoulders the expenses so they require borrowers to contribute to the program at some point. VA funding fee chart shows how much money a borrower will need to pay upfront in addition to the other expenses related to buying a property. Once borrowers learn about the fee, the first question they usually ask is when they need to pay the fee and how much they will need to pay.

VA funding fee chart will show you that there are no flat rates when it comes to the cost of VA funding fees. The price of the fee will greatly depend on various factors such as how much money you are willing to pay for the down payment as well as the status of the applicant. However, veterans actually have the chance to qualify for an exemption so that they will no longer need to pay for a fee. Veterans who incurred service-related disabilities as well as the spouses of veterans who died on duty are not required to pay for the VA funding fee.

VA funding fee chart will help you determine how much your VA fund will cost by considering important factors such as loan amount, down payment, and type of service. First-time borrowers will be charged 2.15% on no down payment loans. Second time users who cannot make a down payment will need to pay a higher fee of 3.3% because they already had the chance to benefit from VA loans. Veterans who were members of the National Guard will need to pay for a 2.4% fee for a loan with no down payment or a 1.75% fee for a loan with 10% down payment.

va funding fee chart

VA funding fee exemption
While it is important to review VA funding fee chart before applying for this type of loan, some veterans may skip this part if they are exempt from paying the fee. Veterans who are receiving disability compensation due to service-related injuries or those who are not receiving retirement pay are exempt from paying a fee when applying for a VA home loan. Surviving spouses of veterans who died in duty are also exempt. However, it is important to remember that the Department of Veterans Affairs has the last word on who is exempt especially when dealing with issues on a case-to-case basis.

In 2010, VA funding fee chart also showed how the exemption has been expanded to cater to the needs of veterans who received disability compensation due to service-related disabilities in the past. It is also meant to protect the rights of those who were recalled to active duty or were re-enlisted but were not receiving active pay in line of the disability compensation. Veterans who are eligible to receive compensation due to pre-discharge disability examinations are also exempt from paying funding fees.

VA funding fee refund
The Department of Veterans Affairs ensures that the home loan program for veterans is not being a huge burden to taxpayers by issuing VA funding fee chart. Borrowers will be required to pay for the fee unless they were able to show proofs of disability. As previously mentioned, those who are eligible for disability payments as well as surviving spouses of veterans who died on duty are also exempt from paying the VA fee. Since the VA funding fee costs 2.15% of the loan amount, it can be an overwhelming amount for most borrowers so they immediately want to know if the fee is refundable.

VA funding fee chart also comes with clauses on whether or not the VA fee is refundable under certain circumstances. For example, borrowers who moved forward on the purchase of a VA loan but did not receive proof of exemption will be required to pay for the fee anyway. Veterans who are exempt from paying the fee must also know that it will be refunded as soon as their proof of exemption has been approved. These are the only times that borrowers will be entitled to receive a refund of the VA funding fee.
VA home loans will greatly benefit veterans who wish to buy their own home in exchange for their years of service in the military. Through VA funding fee chart, they can immediately prepare for whatever fee they will be required to pay before they get an approval for a VA loan.

Now you understand how to use VA funding fee chart