Below we will explain the VA Funding Fee, Loan Amount Limits for 2023
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.
| Down Payment | VA Funding Fee | |
|---|---|---|
| First use | Less than 5% | 2.15% |
| 5% or more | 1.5% | |
| 10% or more | 1.25% | |
| After first use | Less than 5% | 3.3% |
| 5% or more | 1.5% | |
| 10% or more | 1.25% |
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 2.15%. So the final loan amount is $204,300
VA Loan Limit 2023:
Qualified vets are now eligible for loan amounts up to $4mil – 100% financing.