The VA LOAN FUNDING FEE IN MN, WI, or SD


In order for the VA to guarantee the your loan to the mortgage company  you are using to get your home loan in Minnesota, Wisconsin, or South Dakota, there is a closing cost assessed by the VA to originate the loan called a funding fee

 

The VA funding fee is required by law. The fee, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers.

 

This VA funding fee amount will vary

 

The VA funding fee you pay depending upon the type of VA loan you are getting (purchase or refinance), whether this is the first or second time you are getting a VA loan, if you are a disabled veteran, your down payment size, and if you served active duty or in the National Guard, or Reserves.

 

The funding fee for second time users is a bit more expensive. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment.

 

If you have at least a 10% disability due to military service, the VA funding fee is waived.

 

How you pay your VA funding fee

 

To pay your VA funding fee, you have a few options.  You can roll it into your new loan, you can pay it cash, or you can possibly even have the seller pay it.

 

The most common way is to roll it into your new loan amount. We will be happy to break down the numbers, and show you how this works.

 

The following table breaks down the funding fee charged by VA for your VA Loan.

 

First time use, purchase of an eligible property

Down Payment Active Duty Reserves/NG
0% to 4.99% 2.15% 2.4%
5% to 9.99% 1.50% 1.75%
10% + 1.25% 1.50%

Second time use, purchase of an eligible property

Down Payment Active Duty Reserves/NG
0% to 4.99% 3.30% 3.3%
5% to 9.99% 1.50% 1.75%
10% + 1.25% 1.50%

Cash-Out Refinance

  Active Duty Reserves/NG
First Use 2.15% 3.3%
2nd Use 2.40% 3.3%

IRRRL Streamline Refinance

  Active Duty Reserves/NG
All Homes .50% .5%

We provide VA Homes Loans for properties located anywhere in Minnesota, Wisconsin, or South Dakota


 

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