A VA loan allows you to buy your home with zero down or to refinance the full value of your existing home all with relaxed credit requirements. Unfortunately, there are veterans and service members who have reservations about using this benefit because of the funding fee associated with it.
They’re missing out on a HUGE benefit because they simply don’t understand what the funding fee is and why it’s there. The funding fee is the cost that is associated with obtaining a VA loan, and helps to offset the cost of administering the loan. In other words, the funding fee allows the loan to require no down payment or mortgage insurance.
And while all VA loans require a funding fee, the fees are not the same across the board. In fact, there are cases in which the VA waives the funding fee!
In our live VA Loan Q&A Google Hangout with the Department of Veterans Affairs, Military.com and the National Association of Realtors, we spoke in depth about the purpose of the funding fee, which veterans are exempt from paying it, and how you can roll it into your loan.
Check it out here: