Facts About the VA Loan Funding Fee in California

VA financing includes a VA funding fee that is rolled into the new loan balance (or can be paid up front) on almost all VA purchase and VA refinance loans.   This fee is VA’s version of mortgage insurance.  It helps pay the cost of the VA guaranteeing the loans they make to active military and veterans.  Below are some bullet points on VA funding fees:

VA funding fee for first time use of your VA loan eligibility

• Regular Military
  • Veterans that receive any disability pay 0% (no funding fee!)
  • Zero down 2.15%
  • 5-10% down 1.5%
  • 10%+ down 1.25%
• Reserves and National Guard
  • Zero down 2.4%
  • 5-10% down 1.75%
  • 10%+ 1.5%

VA funding fee for subsequent use of your VA loan eligibility

• Regular Military
  • Veterans that receive any disability pay 0% (no funding fee!)
  • Zero down 3.3%
  • 5-10% down 1.5%
  • 10%+ down 1.25%
• Reserves and National Guard
  • Zero down 3.3%
  • 5-10% down 1.75%
  • 10%+ 1.5%

VA funding fee for IRRRL VA Streamline refinances

• Regular military and Reserves and National Guard .5%

And to repeat a point I made above in the bullet points, veterans with any disability rating at all are except from the VA funding fee.  This means you pay no funding fee at all even with 100% financing. 

Also another item to note, VA financing does not have any monthly mortgage insurance.  This is a really great benefit of VA loans over FHA loans and conventional loans which all carry mortgage insurance with less than 20% down payment.

Don’t hesitate to give me a email (homeloan8@gmail.com) or call (858-922-7899) if you would like to get approved for a VA loan or have any questions.

Regards,

Rob Chomentowski

Sr. Loan Officer (and VA specialist)

homeloan8@gmail.com

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