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Joe Metzler, MLO. NMLS #274132

Are you exempt from the VA Funding fee?

Wednesday, October 18, 2017 - Article by: Joe Metzler, MLO. NMLS #274132 - Cambria Mortgage - Message

Minneapolis, MN: VA home loans are a true benefit to our military personal, with no down payment required, no monthly mortgage insurance, and rates lower than conventional home loans. But as with all government backed loans, including FHA loans, and USDA rural development loans, there is a one time funding fee that needs to be paid. But on VA loans, you may be exempt from paying the funding fee.

What is The VA Funding Fee

The VA doesn't actually do home loans. Rather, The Department of Veterans Affairs guarantees the loan to the lender, protecting their additional risk when you have no down payment. The VA Funding Fee is a percentage of the loan amount, and either collected as a closing cost up front, but almost always rolled into your loan amount so that it is not an out-of-pocket expense.

The cost of the loan varies based on service (regular military or reserves/National Guard). It also varies based on down payment size, first time using a VA loan or a subsequent use, cash out refinance, or streamline refinance (also known as a IRRRL loan).

The most common funding fee is 2.15% of your loan amount for a no down payment, first time use. The smallest funding fee is just .50% of the loan amount on a VA streamline refinance.


Many veterans are exempt from the funding fee, but don't know it.

1) Veterans with at least a 10% VA disability for their service-connected disabilities.2) Veterans who are entitled to receive compensation for their service-connected disabilities if they weren't receiving retirement pay.3) The surviving spouses of Veterans that died in service or as the result of a service-connected disability. The surviving spouse does not have to be a Veteran but if the spouse has his own VA entitlement and uses it for the loan, he is still exempt from paying the Funding Fee.

All VA lenders need to obtain your VA Certificate of Eligibility. It will tell us on that document if you are exempt, or need to pay the funding fee.


Regardless if you are exempt from the VA funding fee, hands down, a VA loan is truly a benefit for your service, and the best loan available in the market today. You have served us, now let us serve you an awesome VA home loan.

We offer VA home loans in Minnesota, Wisconsin, and South Dakota at

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