Below we will explain the VA Funding Fee, Loan Amount Limits 2022
VA Funding Fee Explained:
The VA Funding Fee is paid directly to the Department of Veterans Affairs and is the reason they can guarantee this no-money-down loan program. This fee is paid so that VA eligible borrowers can enjoy loan benefits such as $0 down financing and no PMI payments.
VA Funding Fee Chart. The Funding Fee is calculated by looking at a few factors: Loan amount, loan type (VA Purchase or VA Refinance), type of service, down payment (if any) and prior VA loan use. Take a look at the charts below to see how the VA funding fee varies based on these factors.
Borrowers are exempt from paying the funding fee if they receive any disability payments from the VA or are considered at least 10% disabled. How the Funding Fee is Paid:
The funding fee doesn’t need to be ‘paid’ separately and is typically rolled into the loan. This is a big benefit to buyers looking to take advantage of the 100% financing VA loan. Not only do borrowers not need to put anything down, but they can also finance the VA funding fee as well.
VA Funding Fee Exemption:
Remember when using the VA home loan calculator to add the funding fee amount to the loan amount. Example: The purchase price is $200,000. The funding fee is 2.30%. So the final loan amount is $204,600