
Chapter 8 Borrower Fees and Charges and the VA Funding Form


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People also ask
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Do VA loans have funding fees?
The VA funding fee structure is the same whether you're buying a home with less than 5 percent down or doing a cash-out refinance: 2.15 percent for first-time use and 3.3 percent for each subsequent use. For IRRRLs, the funding fee is just 0.5 percent.
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What is the 4% rule on a VA loan?
Seller concessions are financial incentives or contributions that a home seller offers to a homebuyer to help reduce the buyer's out-of-pocket expenses associated with purchasing the home. The VA's policy on seller concessions is rather flexible but requires that they do not exceed 4 percent of the loan amount.
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Are any borrowers exempt from paying the VA funding fee?
Who is Exempt from Paying The Funding Fee? The following persons are exempt from paying the funding fee: Veterans receiving VA compensation for service-connected disabilities. Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
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When did the VA funding fee change?
Looking to purchase a home using a VA loan? Early in 2023, the VA made a scheduled change to VA funding fee rates. These fees apply to loans closed on or after April 7, 2023 and prior to November 14, 2031.
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How to avoid a VA funding fee?
You may be exempt from the VA funding fee if: You're an active-duty service member who has received the Purple Heart. You're the surviving spouse of a veteran who died while on duty or because of a service-related illness or disability.
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What fees are waived with a VA loan?
Real estate broker fees: You cannot pay for real estate broker fees when buying a home with a VA loan. Agent or REALTOR® fees: VA borrowers cannot pay real estate agent fees. In many cases, these fees will be paid by the seller. Application fees: The lender cannot charge you an application fee.
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What fees can a VA borrower not pay?
VA non-allowable fees include: Attorney fees. Real estate agent fees. Prepayment penalties. Inspection fees charged by the U.S. Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA) An appraisal ordered by a lender or seller to dispute a low VA appraised value.
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Do funding fees apply to VA loans?
For all types of VA loans, the loan amount may include the VA funding fee. No other fees and charges or discount points may be included in the loan amount for regular purchase or construction loans.
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