Save Thousands on VA Funding Fee

Are you a veteran who is eligible for a VA loan but hesitant to apply because of the VA funding fee? Did you know that there is a way to save thousands of dollars on this fee? Read on to find out how!

First, let's discuss what the VA funding fee is. It is a fee collected by the Department of Veterans Affairs to offset the cost of the VA loan program. This fee can vary depending on factors such as the type of loan and the down payment amount. For example, a first-time borrower with no down payment may pay a fee of 2.3% of the loan amount.

Now, let's talk about how the fee can be waived for service-connected disability. If you are a veteran who has a service-connected disability rating, you may be eligible for a waiver of the VA funding fee. This means that you can save thousands of dollars on the fee and use that money towards other expenses such as a down payment, closing costs, or home improvements.

To be eligible for the waiver, you must have a disability rating of at least 10%. This rating is determined by the VA based on medical evidence and can range from 10% to 100%. Once you have been awarded a disability rating, you can provide documentation to your VA lender to request the fee waiver.

It's important to note that even if you are eligible for the fee waiver, you should still apply for the VA loan. The benefits of a VA loan, such as no down payment and no private mortgage insurance, can save you money in the long run.

In addition to the fee waiver for service-connected disability, there are other ways to save on the VA funding fee. For example, if you make a down payment of at least 5% but less than 10%, the fee will be reduced. If you make a down payment of 10% or more, the fee will be even lower. Keep in mind that while a down payment is not required for a VA loan, it can help you save money on the overall cost of the loan.

In summary, if you are a veteran with a service-connected disability rating of at least 10%, you may be eligible for a waiver of the VA funding fee. This can save you thousands of dollars and make homeownership more affordable. If you are unsure about your eligibility or have questions about VA loans, contact a VA-approved lender for more information.