Definition
A one-time fee paid to the Department of Veterans Affairs on VA loans that helps fund the VA loan program for future veterans. The fee ranges from 1.25% to 3.3% of the loan amount depending on down payment size and whether it is the borrower's first VA loan. The funding fee can be rolled into the loan balance. Veterans receiving VA disability compensation and surviving spouses of veterans who died in service are exempt from the fee.
Related Mortgage Terms
- Closing Costs
Fees and expenses paid at the finalization of a real estate transaction, typical...
- Down Payment
The upfront portion of the home's purchase price paid in cash by the buyer. Conv...
- Private Mortgage Insurance (PMI)
Insurance required by conventional lenders when the down payment is less than 20...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
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