VA
Loan Costs
A
basic funding fee of 2.0 percent must
be paid to VA by all but certain exempt
veterans. A down payment of 5 percent
or more will reduce the fee to 1.5
percent and a 10 percent down payment
will reduce it 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 and a 10 percent
down payment will reduce it to 2.0
percent.
The
funding 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.
Veterans
who 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.
NOTE:
For all VA home loans, the funding
fee may be paid in cash or it may
be included in the loan.
In
addition, reasonable closing costs
may be charged by the mortgage 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 companies and also
throughout the nation because of differing
local laws and customs.
VA
loan costs may include VA appraisal,
credit report, loan origination fee
(usually 1 percent of the loan), discount
points, title search and title insurance,
recording fees, state and/or local
transfer taxes, if applicable, survey
No
commissions, brokerage fees or "buyer
broker" fees may be charged to the
veteran buyer.
