Meta Description: VA loan fees are affordable! Learn about funding fees and exemptions. #VALoanBenefits

Some veterans avoid VA loans, fearing high fees, but this is a myth. While VA loans include a funding fee, it’s reasonable, can be rolled into the loan, and is often waived for disabled veterans. Let’s debunk this misconception and break down the true cost of VA loans.

Why the Myth Persists

The VA funding fee, a one-time charge, can seem daunting compared to other loans. However, it’s offset by the lack of private mortgage insurance (PMI) and no down payment, making VA loans cost-effective overall. Misunderstandings about the fee’s purpose and exemptions fuel this myth.

The Truth About VA Loan Fees 

Funding Fee Structure: 

First-Time Use: 0% down: 2.15%; 5% or more down: 1.5%; 10% or more down: 1.25%. 

Subsequent Use: 0% down: 3.3%; 5% or more down: 1.5%; 10% or more down: 1.25%.

Roll-In Option: The fee can be added to the loan balance, requiring no upfront payment. 

Exemptions: Veterans with a 10% or higher disability rating are often exempt from the fee.

How to Manage VA Loan Fees

Confirm your disability status with the VA to check for fee exemptions. Discuss with your lender whether to roll the fee into the loan or pay it upfront. Compare the long-term savings of no PMI (hundreds monthly) against the one-time fee to see the value.

VA loan fees are far from excessive, especially with exemptions and no PMI. This benefit makes homeownership affordable for veterans. Don’t let myths about costs stop you from using your VA loan.

Call-to-Action: Ready to save with affordable VA loan fees? Contact John Burke, VA Mortgage Specialist, at jburke@valoansdoneright.com or call (877) 228-9069 to explore your VA loan options.