VA Funding Fees for 2012

VA Funding Fees for 2012

The VA funding fee is required by law.

The VA Funding Fee is paid directly to the Department of Veteran's Affairs and is the reason they can guarantee this no-money-down loan program. This fee is paid so that VA eligibile borrowers can enjoy loan benefits such as $0 down financing and no PMI payments.

So as a reference i created this for you the VA Funding Fees for 2012

For a first-time buyer the fee, is currently 2.15% of loan amount financed.

For second time users who do not make a down payment is 3.3%

The reason for the difference is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users should have had time to accumulate equity or save money towards a down payment.

For purchases or construction loans by active military or retired is:

Zero down for a 1st time user the VA Funding Fee is: 2.15%

5% down for a 1st time user the VA Funding Fee is: 1.5%

10% down or more for a 1st time user the VA Funding Fee is: 1.25%

Zero down 2nd time or more user the VA Funding Fee is: 3.3%

5% down for a 2nd time user the VA Funding Fee is: 1.5%

10% down or more for a 2nd time user the VA Funding Fee is: 1.25%

For Reserves or National Guard

Zero down for a 1st time user the VA Funding Fee is: 2.4%

5% down for a 1st time user the VA Funding Fee is: 1.75%

10% down or more for a 1st time user the VA Funding Fee is: 1.5%

Zero down 2nd time or more user the VA Funding Fee is: 3.3%

5% down for a 2nd time user the VA Funding Fee is: 1.75%

10% down or more for a 2nd time user the VA Funding Fee is: 1.5%

Cash-out refinancing loans

Regular military require a 2.15% fee for first time users and a 3.3% VA Funding Fee for subsequent users.

Reserves or National Guard, the requirement is a 2.4% VA Funding Fee for first time users and a 3.3% fee for subsequent users.

If there are down payments involved, refer to the information above. On interest rate reduction loans, the VA funding fee is .50% and it is 1.0% on Manufactured Home Loans.

Good news there are exceptions

• 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.
• 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).

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