The VA Loan Guaranty Program charges an up front “funding fee” that is rolled into most VA home loans. This fee pays for the VA loan program and allows the Veterans Administration to offer and insure this excellent and special 100% financing program to American servicemen and veterans. This post will explain how much the funding fee is for different types of California VA loans.
Here are some facts about the VA funding fee:
- It’s calculated on the base loan amount
- The fee can be paid in cash at closing or financed into the new loan amount
The funding fee for California VA loans varies by:
- Type of veteran
- Down payment amount
- Whether purchase or VA streamline
- Whether the veteran is using their VA eligibility for the 1st time or subsequent times
VA loan requirements allow certain veterans/borrowers to be exempt from paying the VA funding fee:
- Veterans receiving any VA disability pay do NOT have to pay ANY funding fee
- Surviving spouses of veterans who died in service or from service-connected causes are exempt
Below are examples of VA funding fees for different types of California VA loans:
- Regular Military
- 0% down = 2.15% 1st use, 3.3% subsequent use
- 5% down =1.5% 1st use, 1.5% subsequent use
- 10% down = 1.25% 1st use, 1.25% subsequent use
- VA streamline IRRRL = .5%
- VA cash out refinance = 2.15% 1st use, 3.3% subsequent use
- Reserves and National Guard
- 0% down = 2.4% 1st use, 3.3% subsequent use
- 5% down = 1.75% 1st use, 1.75% subsequent use
- 10% down =1.5% 1st use, 1.5% subsequent use
- VA streamline IRRRL = .5%
- VA cash out refinance = 2.4% 1st use, 3.3% subsequent use
So I hope this helps you understand the VA funding fee on a California VA loan.
Here are some very up-to-date advantages of California VA loans:
- VA streamline loans allow you to easily lower your current VA loan rate to current historically low VA loan interest rates
- VA loan limits in California allow 100% financing loans all the way up to $962,000 in San Francisco, Alameda, San Mateo and Contra Costa County. Los Angeles and Orange County allow VA loan limits to $597,000 with zero down. You can go above these VA loan limits with a small amount down
- VA loan credit scores do not have to be perfect. We can help you get your score where it needs to be. You can get a VA loan 2 years after a bankruptcy, short sale or foreclosure.
Best Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
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- Re-using Your VA Loan Eligibility Multiple Times The VA guidelines only allows VA borrowers to have one...
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