As a veteran or service member, you may have heard about a VA funding fee, which is a cost associated with obtaining a VA loan in Idaho. In this article, we'll explain what a VA funding fee is, who is eligible for it, and who is not.
What is a VA Funding Fee?
A VA funding fee is a one-time payment required by the Department of Veterans Affairs (VA) to help offset the cost of the VA loan program. The fee is a percentage of the loan amount and can vary based on factors such as your military service status, the type of loan, and the size of your down payment.
The VA funding fee is intended to help keep the VA loan program self-sustaining and available for future generations of veterans and service members. While the fee can add to the cost of your loan, it is typically lower than the closing costs and fees associated with traditional loans.
Who is Eligible for a VA Funding Fee?
Most veterans, active-duty service members, and some surviving spouses are eligible for a VA funding fee. The fee amount can vary based on factors such as your military service status and the type of loan.
For example, if you're a first-time homebuyer using a VA loan and you're making no down payment, your funding fee in Idaho will be 2.15% of the loan amount. However, if you're a veteran who has used a VA loan before and you're making a down payment of at least 5%, your funding fee will be reduced to 1.5% of the loan amount.
In some cases, you may be exempt from paying the funding fee. Surviving spouses of veterans who died as a result of a service-related disability, as well as those who are receiving compensation for a service-related disability, may be exempt from paying the fee.
Who is Not Eligible for a VA Funding Fee?
If you're receiving VA disability compensation, you may be exempt from paying the funding fee, but this exemption does not apply to those receiving retirement pay. It's important to understand your eligibility for the funding fee and any potential exemptions before applying for a VA loan.
Overall, a VA funding fee is a one-time payment required by the VA to help offset the cost of the VA loan program. While most veterans, active-duty service members, and some surviving spouses are eligible for the fee, the amount can vary based on a number of factors. If you're considering a VA loan, it's important to understand the funding fee and your eligibility for it, as well as any potential exemptions. By doing so, you can make an informed decision about whether a VA loan is the right choice for you. Give 1st Choice Mortgage a call, we are experts in Veterans loans in Idaho!
Vetarns Administration Funding Fee Chart, Updated February 14, 2023, effective as of 04/07/2023.
| Purchase: First Time Home Buyer |
| Down Payment |
Active Duty/Retired |
Guard / Reserve |
| $0 Down |
2.15% |
2.15% |
| 5-10% Down |
1.50% |
1.50% |
| 10% or More |
1.25% |
1.25% |
| |
|
|
| Purchase: Additional Use |
| Down Payment |
Active Duty/Retired |
Guard / Reserve |
| $0 Down |
3.30% |
3.30% |
| 5-10% down |
1.50% |
1.50% |
| 10% or More |
1.25% |
1.25% |
| |
|
|
| Cashout Refinance |
| VA Usage |
Active Duty/Retired |
Guard / Reserve |
| 1st Time Use |
2.15% |
2.15% |
| Additional Use |
3.30% |
3.30% |
| |
|
|
| IRRL (Interest Rate Reduction Loan or Streamline) |
| VA Usage |
Active Duty/Retired |
Guard / Reserve |
| 1st Time Use |
0.50% |
0.50% |
| Additional Use |
0.50% |
0.50% |
Questions on VA Loans? Don't hesitate in calling us, we are VA experienced! We Serve Veterans in
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