Understanding the VA Funding Fee: Insights from VA Corey

What is the VA Funding Fee?

Hello, it's VA Corey again, your VA loan information hub. Today, we're delving into a topic I often get questions about: the VA funding fee. This one-time cost is essential to the VA loan program, offsetting the government's cost of offering these loans. This enables eligible veterans and service members to enjoy homeownership benefits like no down payment. The VA funding fee varies, ranging from zero for veterans with service-connected disabilities to 2.15% of the loan amount for first-time users, and up to 3.3% for those who have utilized their VA loan benefits previously.

Why the VA Funding Fee Matters

The VA funding fee impacts your finances in two major ways: it can either increase your loan amount or your closing costs. VA allows this fee to be financed, meaning it could be added to your loan amount, or it can be paid upfront at closing. Understanding these options is crucial for making the best decision for your situation.

Decreasing Your VA Funding Fee

Fortunately, there are strategies to reduce your VA funding fee. Firstly, veterans with service-connected disabilities may be exempt. For others, making a down payment can significantly decrease the fee. A 5% down payment reduces the fee to 1.5%, and a 10% down payment lowers it even further to 1.25%. This information is particularly valuable if you have savings or can obtain a gift for the down payment.

VA Corey: Your Go-To for VA Loan Advice

The VA funding fee is a small price for the vast benefits of homeownership through the VA. If you're looking for personalized advice or have more questions, I encourage you to reach out at vacorey.com. And if you've found this information helpful, don't forget to like, subscribe, and hit the notification bell for more insights into VA loans.

Stay Informed and Empowered with VA Corey

I'm here to help you navigate the complexities of VA loans, ensuring you're informed and empowered in your homeownership journey. For more tips and advice, stay tuned to my channel. Until next time, this is VA Corey signing off. Remember, staying informed is the key to making empowered decisions. Talk soon and take care!