VA Funding Fee Information

No Monthly Mortgage Insurance on VA Loans
If you are purchasing a home using your VA Loan benefit, chances are you want to take advantage of the fact that you are not required to put any money down.  One of the greatest advantages of the VA loan is that you will not be charged monthly mortgage insurance if you choose to put no money down or very little down as compared to FHA and Conventional home mortgages.  For comparison’s sake, an FHA Mortgage on a $110,000 house would require you to pay an EXTRA $75 per month just for mortgage insurance.  Veterans Administration Home Loans do not come with this additional cost attached to them.The item that takes the place of monthly mortgage insurance on VA Loans is called the VA Funding Fee.  This fee gets rolled into your loan when you purchase a home or if you choose to refinance your original mortgage later.  The VA funding fee for first time home buyers is 2.15% or $2,365 on a $110,000 home purchase.  Below is a comparison between a VA Mortgage and an FHA Mortgage if you were purchasing a $110,000 home.VA                                                          FHADown Payment                      $0                                                           $3850

Funding Fee                          $2365                                                      $1858

Initial Loan Amount               $112,365                                                  $108,008

MTG Insurance/Mo                 $0                                                           $75

Total MTG PMT                      $520.38                                                   $575.20

It’s amazing how much of a difference monthly mortgage insurance can make in your house payment.  A home buyer would have to put down over $10,000 just to get an equal monthly mortgage payment that a Veteran would receive under similar circumstances.

Over the thirty year loan period the Veteran would pay over $23,000 less than the non-veteran purchasing a home with an FHA loan and they are buying the same house!  What if I told you that the house currently listed at $110,000 came with a $23,000 discount just because your a Veteran, pretty good deal right?

To learn more about VA Loans visit our Facebook page at Facebook.com/eaglehomeloans or call us at 931-896-2903. We serve the Nashville, Clarksville and Fort Campbell communities and specialize in VA Loans for first time home buyers.