VA Funding Fee for VA Loans, Miami Florida

VA Funding Fee for VA Loans, Miami Florida

For VA guaranteed home loans, the borrower must pay the VA Funding Fee (exemptions further down). A borrowing veteran will be given the option of paying this fee at closing or financing into their VA loan. Although a VA loan provides veterans a no-money-down benefit, the VA Funding Fee acts as a contribution toward the cost of this unique benefit.

For first time veteran borrowers looking for 100% financing, the VA Funding Fee is currently at 2.15% of the loan amount while second-time users who don't want to make a down payment are asked to pay 3.3% of the loan amount for their VA Funding Fee. Why are second-timers asked to pay more for their VA Funding Fee? It's pretty simple, these veterans have already taken advantage of a VA loan benefit in the past and in theory have had more time to save money to use towards a down payment.

Another important aspect of the VA Funding Fee is the fact that the VA Funding Fee can vary depending on the type of service rendered and whether the loan is a purchase, a streamline refinance (IRRRL), or simply a cash-out transaction. The following charts show the details and amount required to pay by the VA for the VA Funding Fee.

Type of Veteran	Down Payment	First Time Use	Subsequent Use for loans 1/1/04 to 9/30/11
Regular Military	None 5% - 10% 10% or more	2.15% 1.50% 1.25%	3.3%* 1.50% 1.25%
Reserve/National Guard	None 5% - 10% 10% or more	2.4% 1.75% 1.5%	3.3%* 1.75% 1.50%

Cash-Out Refinancing Loans

Type of Veteran	Percentage for First Time Use	Percentage for Subsequent Use
Regular Military	2.15%	3.3%*
Reserve/National Guard	2.4%	3.3%*

* The higher subsequent use fee does not apply to these types of loans if the veteran's only prior use of entitlement was for a manufactured home loan.

Type of Loan	Percentage for Either Type of Veteran Whether First Time or Subsequent Use
Interest Rate Reduction Refinancing Loans (IRRRL)	0.50%
Manufactured Home Loans	1.00%
Loan Assumptions	0.50%

Although almost all veteran home buyers pay the VA Funding Fee, there are some exceptions that would make a veteran exempt from the VA Funding Fee:

• Veterans with service-related disabilities who are receiving VA compensation

• Veterans with service-related disabilities who did not receive retirement pay but are entitled to receive compensation
• Surviving spouses of veterans who died while rendering service or from any service-related disabilities

Please view our latest VA Loan Testimonial from Miami Florida