VA home Loan funding fee

February 25, 2013 | Valery Behr, iFreedom Direct®

VA Loan FAQ- What is the funding fee? | width= One common question asked by many servicemembers is “What is the funding fee?” Veterans applying for a VA Home Loan may find they have to pay a funding fee. Because the VA Home Loan Guaranty benefit requires no down payment and has no monthly mortgage insurance, the funding fee is paid to the Department of Veterans Affairs to reduce the loan’s costs to taxpayers. However, the prospect of paying a funding fee shouldn’t discourage veterans from taking advantage of all a VA Loan has to offer. Here’s everything you need to know about the VA Home Loan funding fee before you break out your checkbook:

How much is the funding fee?
The funding fee is a percentage of your loan amount (between 0 and 3.3 percent). It is determined by the type of loan, your military category, whether you make a down payment and if you are a first-time or subsequent loan user. If you are a second time user and did not make a down payment on your initial VA Home Loan, the funding fee will be slightly higher. National Guard and Reserve Veterans also pay a slightly higher funding fee than other military personnel.

Who has to pay a funding fee?
All veterans using the VA Home Loan Guaranty benefit must pay a funding fee unless you are a veteran receiving VA compensation for a service-connected disability or are a veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay. Surviving spouses of a veteran who died in service or from a service-connected disability also do no not have to pay a funding fee.

When do I have to pay the funding fee?

Great Amer Dream The Great American Dream: Home Buyer's Guide to Using Your Va Entitlement
Book (Great Amer Dream)

You should 100% use a VA loan

2008-06-18 18:36:14 by tparealtor

As a veteran you are entitled to a loan that offers no down payment. The maximum price of the home that you can use your VA entitlement is up to 4 times that entitlement and not need any money down. The lenders do not normally do more than that because it is not insured by VA. You do not have mortgage insurance but you do have a funding fee. You can buy homes that need fixing up (short sale, reo) as long as the home is safe, sound and sanitary. If the inspection states that something needs to be fixed before they will fund you can appeal that and they will remove the item as long as the home is safe

Another Short Sale Question - from short seller

2010-03-15 11:21:53 by asb9ab

So about a year ago we sold our home via shortsale.
My question is of course, how can we buy a home now. Please consider my story.
We bought a house in OCT 05 that we COULD afford. When I graduated college 2 years later I got a job offer in KC and we had to move. We ended up doing the short sale after our house was on the market for 20 months. We made the payments for the first year, but then stopped for a multitude of reasons that all probably sound stupid now. The other thing is that I am a veteran, so the VA actually paid the bank the difference. However, this was reported and closed as a short sale before the VA made the payment for the difference and is therefore reflected on our credit just as a short sale even though the bank was actually "Paid in Full

You might also like:

VA Funding Fee effective October 1, …
VA Funding Fee effective October 1, …
VA Funding Fees for 2012
VA Funding Fees for 2012

ICICI Bank inaugurates a new branch at Indirapuram, Ghaziabad  — Parda Phash
The branch will offer the entire gamut of ICICI Bank products including a comprehensive range of deposits, loans, NRI Services and locker facilities to cater to different customer profiles and needs. Speaking on the occasion Mr.

Atlantic Publishing Group, Inc. The Complete Guide to Veterans' Benefits: Everything You Need to Know Explained Simply
eBooks (Atlantic Publishing Group, Inc.)

Related posts:

  • Avatar meetul Procedure for premature Fill up homeloans?
    Feb 14, 2010 by meetul | Posted in Men's Health

    Hai i had home loan from ICICI of which installment due on 10of everymonth which date should i give up all mony including charges and penulty that i have last instalment

    • First of the month