VA-backed purchase and construction loans
Rates for Veterans, active-duty service members, and National Guard and Reserve members
| |
If your down payment is… |
Your VA funding fee will be… |
| First use |
Less than 5% |
2.15% |
| |
5% or more |
1.5% |
| |
10% or more |
1.25% |
| After first use |
Less than 5% |
3.3% |
| |
5% or more |
1.5% |
| |
10% or more |
1.25% |
|
Note: If you used a VA-backed or VA direct home loan to purchase only a manufactured home in the past, you’ll still pay the first-time funding fee.
VA-backed cash-out refinancing loans
Rates for Veterans, active-duty service members, and National Guard and Reserve members
| First use |
After first use |
| 2.15% |
3.3% |
|
Note: The VA funding fee rates for refinancing loans don’t change based on your down payment amount. If you used a VA-backed or VA direct home loan to purchase only a manufactured home in the past, you’ll still pay the first-time funding fee.
Native American Direct Loan (NADL)
| Type of use |
VA funding fee |
| Purchase |
1.25% |
| Refinance |
0.5% |
|
Note: The VA funding fee rate for this loan doesn’t change based on your down payment amount or whether you’ve used the VA home loan program in the past.
Other VA home loan types
| Loan type |
VA funding fee |
| Interest Rate Reduction Refinancing Loans (IRRRLs) |
0.5% |
| Manufactured home loans (not permanently affixed) |
1% |
| Loan assumptions |
0.5% |
| Vendee loan, for purchasing VA-acquired property |
2.25% |
|
Note: The VA funding fee rates for these loans don’t change based on your down payment amount or whether you’ve used the VA home loan program in the past.
Who determines my loan details?
The VA does not determine most details of your home loan.
The lender will determine these details of your loan:
- Interest rate
- Discount points (fees you may pay to your lender at closing to get a lower interest rate on your loan)
- Other closing costs
These rates may vary from lender to lender. You should know that adding the VA funding fee and other loan costs to your loan could lead to you owing more money than the fair market value of the home. This could reduce the benefit of refinancing since your payment wouldn’t be as low as you may want it to be. It could also make it harder for you to get enough money out of the future sale of the home to pay off your loan balance.
Who pays for which closing costs?
The seller must pay these closing costs (sometimes called seller’s concessions):
- Commission for real estate professionals
- Brokerage fee
- Buyer broker fee
- Termite report (unless you’re using a refinancing loan)
You (the buyer) or the seller can negotiate who will pay other closing costs such as these:
- VA funding fee
- Loan origination fee
- Loan discount points or funds for temporary “buydowns”
- Credit report and payment of any credit balances or judgments
- VA appraisal fee
- Hazard insurance and real estate taxes
- State and local taxes
- Title insurance
- Recording fee
Note: The VA requires that a seller can’t pay more than 4% of the total home loan in seller’s concessions.
But this rule covers only some closing costs, including the VA funding fee. The rule doesn’t cover loan discount points.
Have questions? Speak with a trusted VA-lending specialist
In addition to the VA Loan, Florida’s VA Mortgage Center is proud to offer several other financing options for homebuyers; including USDA loans, FHA loans, and traditional mortgages.
Just ask if one of these options is better for you!
