VA Funding Fee

As a company founded by veterans, J.G. Wentworth is proud to offer service members and their families the opportunity to become homeowners with the VA loan program. We are an approved lender with the capabilities to offer low VA loan rates with no points or hidden fees.

VA loans are one of the few home loan programs that require no down payment and minimal out-of-pocket costs. These benefits allow borrowers to put their money towards what really matters. One of the few costs future homeowners are required to pay with VA loans is the VA Funding Fee. Here are some answers to universal questions about this fee and the purpose that it serves.

What is the VA Loan Funding Fee?

The VA Funding Fee is a specified fee applied to VA home purchase loans and VA refinancing. Proceeds of the VA Funding Fee go directly to the Department of Veterans Affairs. The purpose is to sustain the VA home lending program and to ensure that future generations of military homebuyers are able to receive the same benefits and at no cost to taxpayers. The VA loan Funding Fee also guarantees against loss in the case of loan default by a borrower. 

How is the VA Funding Fee Calculated?

The fee is based on a percentage of the purchase price of your home, so the amount can vary. The VA Funding Fee may change depending on several factors, such as the nature of the borrower’s service, if the borrower has a prior VA loan, and if there is a down payment involved. 

Military members tend to pay slightly lower VA Funding Fees than Reservists or National Guard members. For example, if you are using the VA loan program for the first time and you are regular military personnel, your funding fee could begin around 2.15 percent. If you are in the Reserves or National Guard and using the VA loan program for the first time, your funding fee could be around 2.4 percent. For subsequent use of a VA loan, the Funding Fee could rise and be around 3.3 percent for military members and those in the Reserves or National Guard. 

The amount of your VA Funding Fee can also be offset by adding a down payment. Although not required, a down payment can decrease your Funding Fee amount up to a whole percent.

Not everyone who takes advantage of a VA loan is required to pay the VA Funding Fee. Veterans receiving disability benefits for service-related disability are just one example of those who are exempt. Contact our VA loan specialists to find out whether or not you will be required to pay the VA loan Funding Fee. 

As a result of the VA Funding Fee, the VA loan program will continue to benefit the lives of military members and their families for generations to come. Learn more about VA entitlements and VA loan limits by contacting J.G. Wentworth today.

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J.G. Wentworth® is a proud sponsor of Homes for Our Troops. Building homes, Rebuilding lives.

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J.G. Wentworth offers a wide variety of loan programs with low rates and no points and no hidden fees.  To get started, you can call us or let us contact you by completing a short form.  You can also get a rate quote in seconds with no personal information required. We look forward to working with you.