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Extras insurance fees on VA loans?

comm officer told me he bought a house and did not have to pay mortgage insurance but then my wife said we will have to? (she is a real estate agent) hoping she is wrong or mistaking dor home insurance by jessalbrecht784452 from Dayton, Tennessee. Sep 8th 2014 Reply


Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 213 contributions

You do not have mortgage insurance on a VA loan no matter what the loan to value is. You will have a funding fee. This funding fee amount is determined by several different parameters.

Sep 8th 2014
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Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 213 contributions

If you google VA funding fee charts it will bring up a chart that indicates how much your funding fee will be based on your situation.

Sep 8th 2014
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Bruce Dawson (bdawson)
#20 ranked lender in Tennessee - 27 contributions

Nancy is correct, there is no mortgage insurance on a VA loan, VA guarantees the loan. If it's your 1st time using VA the Funding Fee (FF) is 2.15% and it is financed into the loan, unless you elect to pay it at closing. If you put money down the FF could be less. If you receive VA disability of 10% or more you will not have a funding fee.

Sep 8th 2014
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,782 contributions

Your wife needs to get educated.. VA does not charge mortgage insurance at all. They do however charge an upfront "VA Funding Fee" and it varies based on your service type and whether or not your disabled. Of all the different lending programs available, VA is hands down the best financing you can get.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Sep 8th 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

It sounds like someone is confused or misinformed. The VA funding fee (usually minimum 2.15% of the loan amount) is instead of the normal requirement for mortgage insurance - that may be where your wife is confused. The VA funding fee is waived if you are receiving VA disability income, but there is never monthly mortgage insurance on a VA loan, you will of course need to get homeowners insurance and 1/12 of that cost plus 1/12 of the annual property taxes on the property and any required flood insurance will be escrowed (included) with your monthly mortgage payment. The funding fee is added to your loan amount, so if the starting mortgage were $100,000 the total mortgage with the funding fee would be $102150 which adds less than $11 to your monthly payment. (You can of course pay it in cash if you wish.)

Sep 8th 2014
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,106 contributions

This is the one time you can tell your wife she is wrong. :) VA does not have any mortgage insurance. However, if you don't have a 10% or greater disability you will have to pay a VA funding fee that is applied to the loan balance. The amount of the VA funding fee will depend on several different factors. I would speak with a local loan officer and have them go over all of your VA options. Best wishes, Sean

Sep 8th 2014
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