Mortgage Glossary
Funding Fee
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A funding fee is a one-time charge on VA and USDA loans that helps sustain the programs in place of monthly mortgage insurance.
What Funding Fee means
On VA loans the fee ranges roughly 1.25%–3.3% of the loan, depending on down payment and prior use, and can be financed. Disabled veterans are usually exempt.
Florida example
A Florida veteran using a VA loan for the first time with no down payment pays a 2.15% funding fee, about $7,525 on a $350,000 loan, which can be rolled into the balance instead of paid in cash.
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