What Is The VA Loan Funding Fee? Do I Have To Pay It? Can It Be Waived?

The wars going on in Iraq and Afghanistan have created a lot more Veterans. One of the Veterans greatest benefits is the VA Mortgage Loan. The VA Loan allows a Veteran to purchase a home with no down payment and the seller can contribute to the closing costs.

Unlike other types of loans such as Conventional and FHA the VA loan does not have private mortgage insurance or a monthly MIP fee. VA Loans do have a one time fee that in most cases can be financed into the loan known as the VA Funding Fee.

The fee varies from 0.50% to 3.30% depending on whether you are/were regular military or the reserves / national guard, the purpose of the loan, the size of the down payment or loan-to-value, and whether it's a first time or subsequent use. Despite what a lot of people have heard or think the VA Loan benefit can be used over and over again and under certain circumstances you can have two VA Loans at the same time.

Can the VA Funding Fee be waived. Yes, in certain circumstances. Reasons to waive the fee include Veterans receiving VA compensation for service-connected disabilities, Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay, and Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).

The maximum VA Loan varies by location. In most areas the maximum VA Loan is $417,000 but can go as high as $1,094,625. In the Washington, DC area the maximium loan is $818,750. In the Baltimore, MD area the limit is $500,000. To see the limit in your area go to VA Loan Limits.

You can get answers to your VA Loan questions such as Interest Rate Reduction Refinances (IRRRLs), Refinancing VA Loans, Proof Of Service Requirements, Pre-Loan Questions, and Eligibility Questions by visiting DCMilitaryVALoans.com.


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Your source for Conventional, FHA and VA loan information.

My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.

Alan Gross
Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878
Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
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