FlexPoint, Inc is a direct lender of VA Loans which allows us to quickly and efficiently process VA Loans for clients who qualify. If you are a veteran, member of the military, or a military spouse, then you may be eligible for a VA Home Loan.

Whether you are purchasing or refinancing your home, a VA loan offers the better terms on a 30 year or 15 year fixed loan. Additionally, VA loans are easy for Veterans to qualify for and require NO MONEY DOWN and there is no PMI (Private Mortgage Insurance). If a refinance is needed, we can lend the homeowner up to 100% of the appraised value.

Understanding the VA Funding Fee

The VA Funding Fee is a fee charged to veterans using a VA home loan to help cover the costs of the VA home loan program. In 2023, the VA Funding Fee will be a percentage of the loan amount, and it varies depending on the type of loan, the military status of the borrower, and whether the borrower is making a down payment. The following guide provides a complete explanation of the 2023 VA Funding Fee, including charts to show the fee amount, and information on exemptions for certain veterans.

First, it’s important to note that the VA Funding Fee is not a one-time charge, it’s a fee that’s financed into the loan and is paid over the life of the loan.

For regular military borrowers, the VA Funding Fee in 2023 will be 2.3% of the loan amount for first-time use, 3.6% for a subsequent use, and 1.65% for borrowers making a down payment of 5% or more. For National Guard and Reserve borrowers, the fee will be 2.65% for first-time use, 3.6% for subsequent use, and 1.65% for borrowers making a down payment of 5% or more.

For veterans who are exempt from the VA Funding Fee, they include:

Veterans receiving VA compensation for a service-connected disability

Veterans who would be entitled to receive compensation for a service-connected disability if they did not receive retirement or active duty pay

Surviving spouses of veterans who died in service or from a service-connected disability

The following chart summarizes the VA Funding Fee for regular military borrowers in 2023:

It’s important to note that the funding fee is subject to change, and it’s always a good idea to check with the VA or with a lender for the most up-to-date information.

In conclusion, the VA Funding Fee is a fee charged to veterans using a VA home loan to help cover the costs of the VA home loan program. In 2023, the fee amount will vary depending on the type of loan, the military status of the borrower, and whether the borrower is making a down payment. Certain veterans may be exempt from the fee. This guide provides a complete explanation of the 2023 VA Funding Fee, including charts to show the fee amount, and information on exemptions for certain veterans.

Determining the Funding Fee Amount

To determine the exact funding fee amount, borrowers can use the VA’s Funding Fee Chart, which can be found on the VA’s website. The chart lists the funding fee percentage for each type of loan and military status, along with information on exemptions and reductions.

It’s important to note that the funding fee percentage may change annually, so it’s always a good idea to check the most up-to-date chart. Additionally, the funding fee can be financed into the loan, meaning the borrower can choose to include it in the loan amount and pay it off over the life of the loan, rather than paying it upfront.

It’s also good to know that the funding fee can be waived for certain veterans, including those who receive VA compensation for a service-connected disability, veterans who would be entitled to receive compensation for a service-connected disability if they did not receive retirement or active-duty pay, and surviving spouses of veterans who died in service or from a service-connected disability.

To summarize, the VA Funding Fee is a fee charged to veterans using a VA home loan to help cover the costs of the VA home loan program. The amount of the fee varies depending on the type of loan, military status, and whether a down payment is made. It can be financed into the loan, and certain veterans may be exempt from the fee. It’s important to use the most up-to-date VA Funding Fee Chart to determine the exact funding fee amount, and to check for any potential exemptions or reductions.