VA Funding Fee

Phoenix Arizona VA Funding Fee

The VA Funding Fee is a fee VA charges military veterans for the usage of a VA Mortgage.  The VA Funding fee is a form of mortgage insurance that your Phoenix Arizona VA Mortgage Lender typically finances into a veterans VA home loan at closing.  The Arizona Veteran does not pay this out of pocket unless they want to.  Instead, it is a part of their total and final VA loan amount.  The VA funding fee allows the VA to insure VA loans against defaults.  Therefore it is what allows Arizona VA lenders provide our nations veterans with VA mortgage options.

Apply for a VA Home Loan

How Much Does the VA Funding Fee Cost? 

The cost of the VA Funding Fee is based on a set of factors set forth by the VA.  These Fee factors vary based on the veterans level of service, the number of times a veteran has used a VA mortgage in the past, the type of transaction (purchase or refinance) and the amount of money the Phoenix area veteran puts down as a down payment on a purchase.  Learn more about this on VA’s Home Loan portal.  Here is a sample calculation using the VA fee factor of 2.15% on a $200,000 purchase with 0% down:

Step 1:  Loan Amt/Purch Price $200,000    x    Fee Factor 2.15%   = VA Funding Fee  $4,300
Step 2:  Loan Amount $200,000  +   Va Funding Fee $4,300   = Veterans Final VA Loan Amount $204,300

In this example, the veteran borrows a total of $204,300.  Please contact me today if you have any questions.  As your Arizona VA Mortgage Lender I can help answer any and all questions you have regarding a VA mortgage.  You may also click HERE to apply online today!

** Important** If a veteran is considered disabled by VA than that veteran is exempt from paying the VA Funding fee.

Learn more about VA Home Loans

By Jeremy House

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