A basic funding
fee of 2 percent must be paid to the VA (Veterans'
Administration) by all but certain exempt veterans.
A down payment of 5 percent or more will reduce the fee to 1.5 percent.
A 10 percent down payment will reduce the fee to 1.25 percent.
A funding fee
of 2.75 percent must be paid by all eligible Reserve/National Guard
individuals. A down payment of 5 percent or more will reduce the
fee to 2.25 percent. A 10 percent down payment will reduce it to
fee for loans to refinance an existing VA home loan with a new VA
home loan to lower the existing interest rate is 0.5 percent.
are using entitlement for a second or subsequent time, who do not
make a down payment of at least 5 percent, are charged a funding
fee of 3 percent.
all VA home loans, the funding fee may be paid in cash or it may
be included in the loan.
reasonable closing costs may be charged by the mortage company.
These costs may not be included in the loan. The following items
may be paid by the veteran purchaser, the seller, or shared. Closing
costs may vary among mortgage companies, and also throughout the
nation, because of differing local laws and customs.
brokerage fees or "buyer broker" fees may be charged to the veteran
Nathan Toler is Vice-President of Internet Operations for Sharp
Mortgage Group, a zero-down home mortgage specialist. Click here
for more about
VA home loans and mortgage
rates for Virginia.