Understanding The VA Funding Fee And Closing Costs
In this blog, we will discuss and cover understanding the VA funding fee on VA loans. VA loans are the best home mortgage program in the United States. However, not everyone can qualify for VA loans. You need to be an active and/or retired member of the U.S. Military with a certificate of eligibility (COE). Due to the government guarantee of the Veterans Administration (VA), lenders can offer VA home loans with no down payment required and 100% financing. Mortgage rates on VA loans are among the lowest out of any other home loan program. Even lower than conventional loans. There is no maximum loan limit on VA loans.
Seller Contribution To Pay For Closing Costs on VA Loans
Most of our VA borrowers at Gustan Cho Associates do not have to pay closing costs out of their pockets. Closing costs are often covered with a sellers’ concession by the home seller. In the event, that the borrower is short of closing costs with a seller’s concession, the mortgage company can give the borrower a lender credit in lieu of a higher mortgage rate to cover the shortage in closing costs.
Closing Costs On VA Home Loans
The maximum amount of seller’s concession to the home buyer to homebuyers is a 4.0% seller’s concession to the homebuyer. VA loans do not have a mandatory mortgage insurance premium requirement. This holds true even with no down payment and 100% financing. However, the VA does require a one-time VA funding fee on all VA loans. Understanding The VA Funding Fee On VA Home Loans is important. There is a chart on the amount the borrower is charged on the funding fee. The funding fee can be rolled into the VA loans and does not have to come out of pocket. Gustan Cho Associates is a national mortgage company licensed in multiple states with no lender overlays on VA loans. In this article, we will discuss and cover Understanding The VA Funding Fee On VA Home Loans.
Understanding The VA Funding Fee When Qualifying For A VA Loan
One of the greatest rewards and benefits earned by our members of the armed services is becoming eligible for VA loans. Only U.S. military members with a certificate of eligibility (COE) can qualify for a VA loan. The VA funding fee is a one-time fee that can be rolled into the VA loan balance. Frequently asked questions about the VA funding fee are the following:
- What is the VA funding fee?
- Who pays for the funding fee and how much is it?
- Why do certain borrowers get a discounted rate on the VA funding fee
In this blog, we will discuss and explain all about the VA funding fee.
VA Funding Fee Explained
Instead of charging borrowers an annual mortgage insurance premium, the VA has a one-time VA funding fee to support the existence of VA loans. Borrowers are responsible to pay for the one-time VA funding fee. Jammi Cash, a vice president of mortgage banking at Gustan Cho Associates, is a VA home mortgage expert.
2022 VA Funding Fee Chart
Understanding The VA Funding Fee On VA Home Loans is important. Please study the VA funding fee chart below for 2022:
As mentioned earlier, VA loans are hands down the be home mortgage program in the U.S. The federal government created and launched VA loans as a reward for our men and women in uniform to thank them and their families for their service in protecting our country.
VA Lenders With No Overlays On VA Loans
To qualify for a VA loan with a mortgage lender with no lender overlays on government and conventional loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.
January 5, 2022 - 3 min read