VETERANS ADMINISTRATION (VA) LOAN COSTS

The VA sets the fees that may be charged connection with a VA loan. Some of these fees depend upon the status of the veteran. For example:

Most veterans incur a two percent funding fee, which can be reduced to a one-and-a-half percent funding fee where the down payment is as least five percent of the purchase price, and which can be reduced to a one percent funding fee where the down payment is at least ten percent of the purchase price.
Eligible reservists must pay a 2.75% funding fee, which can be reduced to 2.25% funding fee where the down payment is at least five percent of the purchase price, and which can be reduced to a 1.75% funding fee where the down payment is at least ten percent of the purchase price.
Veterans not making any down payment and using their VA entitlement for a second or subsequent time must pay a three percent funding fee.
Veterans must pay a funding fee of one-half of one percent of the loan balance to refinancing an existing VA loan.
Other fees may also be involved with the loan, including an appraisal performed by an appraiser approved by the VA, credit report, loan origination fee, any discount points, broker fees, title and recording fees and state and local transfer taxes (depending on the state) and other closing fees. The VA sets specific rules as to whether these fees may be paid by the veteran, by the seller or may be shared between buyer and seller. The VA even allows some of the fees to be rolled into the loan balance.

As with any loan program, these fees change continually. You should contact a mortgage professional to verify the current fees and determine your eligibility before selecting any particular loan program.

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