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VA
Home Loan Funding Fee
In order for VA to
guarantee the home loan, there is a closing cost assessed by the VA
to originate the loan called a funding fee. This fee will
vary, depending upon the type of VA loan, whether this is your first
time to use your entitlement, if you are a disabled veteran, the
down payment and if you served active duty or in the National
Guard/Reserves.
The following table
breaks down the funding fee charged by VA:
| First
time use, purchase of an eligible property |
| Down
Payment |
Active
Duty |
Reserves/NG |
| 0% to 4.99% |
2.00% |
2.75% |
| 5% to 9.99% |
1.50% |
2.25% |
| 10% + |
1.25% |
2.00% |
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| Second
time use, purchase of an eligible property |
| Down
Payment |
Active
Duty |
Reserves/NG |
| 0% to 4.99% |
3.00% |
3.00% |
| 5% to 9.99% |
1.50% |
2.25% |
| 10% + |
1.25% |
2.00% |
Cash-out Refinance: 3.00%
Funding Fee
The funding fee does not have to be
paid by veterans receiving VA compensation for service-connected
disabilities, or who but for the receipt of retirement pay would be
entitled to receive compensation for service-connected disabilities,
or surviving spouses of veterans who died in service or from a
service-connected disability
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