What does the funding fee do?
The funding fee helps reduce the cost of the VA loan program to taxpayers.
It is separate from lender fees, title charges, taxes, insurance, and other closing costs.
Can the fee be financed?
In many cases, the funding fee can be financed into the loan rather than paid in cash at closing.
Financing the fee increases the loan amount, so it can affect the monthly payment and total interest paid.
Who may be exempt?
Some borrowers may be exempt from the funding fee, including certain veterans receiving VA disability compensation and certain surviving spouses.
Exemption status should be verified as part of the loan process.