FF - Funding Fee (VA)
The definition of mortgage term: Funding Fee (VA)
A one time fee paid to the VA for the purchase of a loan. The amount of the fee is a percentage dependent on the type of loan, your military category, whether there is a down payment, and if you have uses your eligibility in the past. Those who collect disability from the VA are exempt from the funding fee. The larger the down-payment the smaller the funding fee. The funding fee is also larger after the first use on both new purchases and cash-out refinances. The funding fee for an Interest Rate Reduction Refinance Loan the funding fee is a constant regardless of whether it is the first use or any additional use. The funding fee is typically rolled into the loan. The funding fee is paid to the VA loan so that the benefits, like no down-payment, are available to veterans in the future.
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