Posts
VA Guaranteed Loan Funding Fee
July 20th, 2009 | 
Author: There are a lot of questions about VA Guaranteed Loans in the Eugene/Springfield Oregon area and this is my second installment to answer some of those questions. Today, I am going to discuss the VA Funding Fee. A Veteran that makes use of a VA loan will pay a funding fee unless they are exempt from the collection of said fee by having a 10% or greater service connected disability.
The VA Funding fee is financed into the loan amount and not an up front closing cost. Take a look at this chart for the breakdown of funding fee requirements:
Funding Fee Tables |
Purchase And Construction LoansNote: The funding fee for regular military first time use from 1/1/04 to 9/30/04 is 2.2 percent. This figure drops to 2.15 percent on 10/1/04. | |||||
| Type of Veteran | Down Payment | First Time Use | Subsequent Use for loans from 1/1/04 to 9/30/2011 | |||
| Regular Military | None
5% or more (up to 10%) 10% or more |
2.15%
1.50% 1.25% |
3.3% *
1.50% 1.25% |
|||
| Reserves/National Guard | None
5% or more (up to 10%) 10% or more |
2.4%
1.75% 1.5% |
3.3% *
1.75% 1.5% |
|||
| Cash-Out Refinancing Loans |
| Type of Veteran | Percentage for First Time Use | Percentage for Subsequent Use |
| Regular Military | 2.15% | 3.3% * |
| Reserves/National Guard | 2.4% | 3.3% * |
| * The higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan. |
| Other Types Of Loans | ||
| Type of Loan | Percentage for Either Type of Veteran Whether First Time or Subsequent Use | |
| Interest Rate Reduction Refinancing Loans | .50% | |
| Manufactured Home Loans | 1.00% | |
| Loan Assumptions | .50% |
Please note the following:
- Most VA buyers do not put any down payment on a purchase, but note that with 5% down on subsequent usage, instead of a 3.3% funding fee, the veteran will only pay a 1.5% funding fee.
- Manufactured home loans at a lower funding fee refer to home only loans, and currently, I have no lender that will make this loan.
- Interest Rate Reduction Refinancing Loans are only .5%, no matter how many times they are done.
- There is a difference between regular military and Reserve/National Guard on first time usage.
I am available to help anyone that wants more information about VA Loans. I am a Vietnam era veteran and have had 4 VA loans, including my current loan. You can reach me at 541-342-7576/541-221-3455 Cell or e-mail at eugeneloanguy@gmail.com.
Posted in 
Tags: 
