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Module 3 Discussion: Funding Fees
  • 2.In order to defray costs of administering the VA Home Loan program, borrowers pay a funding fee at time of closing.

    What is your experience with funding fees?

    After you have posted to this discussion, review your colleagues’ comments and reply to at least one other post.
  • I have no experience with funding fees.
  • no experience with funding fees yet
  • No experience with funding fees.
  • I do not have any experience with funding fees.
  • With zero down...First time 2.15% . Then 3.3% thereafter. Fees are imposed on VA refi's too. Some vets are exempt from funding fee with disability status.
  • I do not have any experience with funding fees.
  • Funding fees may not need to be paid by veterans with service connected disabilities.
  • I have had personal experience due to 2 home purchases using VA financing. I have worked with one client who obtained VA financing for a home purchase.
  • no experience with funding fees but i can see buyers getting upset thinking these are hidden fees nobody told them about up front.
  • In order to defray costs of administering the VA Home Loan program, borrowers pay a funding fee at time of closing.

    What is your experience with funding fees? My experience is that veterans with service connected disabilities are exempt from paying the funding fee in some cases (depends upon % disability rating). Also, if they are in the process of obtaining a disability rating from the VA, and are subsequently awarded, they may be entitled to a refund of the funding fee! This happened for my husband when we purchased our first home together.
  • no experience with funding fees. But the lenders I use do a great job of explaining them to the clients
  • No experience with funding fees.
  • Disabled vets don't have to pay funding fees. Sellers can pay them for the veteran. Or, funding fees can be rolled into the loan.
  • I have no experience with funding fees.
  • I do not have experience with funding fees.
  • I have not worked with any Vets yet that will be using a VA loan, I however have used my VA loan and did not have a funding fee because I am disabled and this has not been covered in this class yet but is also very important to point out if you have a Veteran that is receiving at least 10% disability from the VA then there is no funding fee/participation fee.
  • No experience.
  • No experience.
  • The funding fee added to the mortgage often has the Buyer upside down on their mortgage from day one. Example; $100,000 house, finance 100%, roll in VA funding fee; Vet owes more than $100,000 on the home they just purchases.
    It makes it more difficult for someone moving in 2-3 years to have enough equity to resell.
  • Funding fees can be rolled into the loan financing.
  • Funding fees may be waived if the veteran is disabled 10% or more.
  • No experience with funding fees.
  • I don't have experience with funding fees yet, but it is good to know about the waiver of fees for disabled veterans.
  • no experience with funding fees. I will leave that up to the lender to explain. But I am glad to hear that the fees are waived for disabled veterans.
  • I have no experience with a funding. I have heard lenders state that going VA doesn't always make sense for a borrower. This is probably what they were referring to.
  • I have had a couple clients utilize VA Loans in the last 3 years, including one Vet with 100% disability.
  • I'm very familiar with funding fees. I've moved multiple times on active duty and understand the ins an outs. The 3.3 fee for second and beyond time using the VA was a surprise to some when I told them about it. The fee can be reduced if the veteran puts down 5% or more. I recommend that if possible. Disabled vets and even their dependents in case of death can have the funding fee waived. It's a little thing they can pass on to their loved ones after passing.
  • I have no experience with funding fees. I did like Jacqueline Frye's comment. It makes sense, and it's good to know. Thank you for the information Jacqueline!








    1
  • no experience with funding fees.
  • no experience. Once again I can see the importance of educating yourself for clients. There is so much misinformation and misconceptions out there. Bringing good accurate info shows the client your dedication.
  • Funding fee is also 0 if 100% disabled. I always ask my borrowers if they are because you cant always visually tell and it can save a heck of a lot of $$ on the loan balance.
  • ALSO a disabled vet may apply with the county and have property taxes lowered or waived altogether.
  • More the downpayment, less the funding fee.
  • The funding fee was included but because of the disability the veteran will be able to recoup that once the final paperwork was completed.
  • Funding fees are unfair. Why impose a fee to the veteran. If it’s 100% financing, why the funding fee, and why so much? Because it’s a business. It’s very embarrassing to explain the100% financing, then tell them they have to come up with the funding fee. If they role the funding fee into the mortgage, they are already at least 2.5 to 3 percent over and above the value of the home. If they try to sell in 3 years, they loose.
  • No experience.
  • I was surprised the first time I became aware of the funding fee on a VA loan. But if a buyer needs help getting a loan for whatever reason, credit or not enough funds and the VA loan can provide an avenue to help, then, the funding fee is worth paying.
  • No experience with funding fees, but currently searching for a home for a vet. The information is very helpful.
  • The VA funding fee is a certain percentage of the loan. For subsequent VA loans that fee goes up slightly. If there is a certain disability rating by the VA, already in place, the funding fee is waived. Active duty members have to pay the funding fee, as they don't get rated until they get out. So unless they got out and then got back in, they are going to pay that fee. I don't think that aspect is fair to our service members that have disabilities but can't get rated until they get out.
  • No experience with funding fees. I've only been on Seller side of working with VA buyer and appraiser. People's comments are extremely helpful and insightful.
  • While I do not have experience with funding fees as an agent, I sold my home to a veteran, and I am familiar with the seller's assistance provided to a VA buyer (closing costs, etc.).
  • Own personal experience - first home and second purchase was rolled into loan. When we refinanced it was waived due to husband's disability rating. Good information to know and educate client about how much it could impact them if they do not have a large down payment.
  • I try to get veteran to put 5% down if at all possible. This lowers funding fee and they have a little more equity if they need to move in 2-3 years.
  • I am fortunate that the majority of the vets I have worked with had a great lender who explained to them the funding fee that is in place. However, there is always that one. I had a client who was very upset that he thought the loan was 100% financed and didn't realize he needed to come up with this. The key is having a great team in place (agent and lender) to explain these fees upfront.
  • My experience with funding fees is personal rather than professional. My husband is retired army and when we bought a house when he was active duty the funding fee was nearly 10K. After he obtained disabled veteran status, we purchased another home and the funding fee is waived due to his disabled status. It saved us 12K so it's a big benefit. Even as a military spouse I didn't know that with 10 percent down it lowers the fee to 1.5% so im glad I took this course!
  • The funding fee is non-negotiable. I currently work along side the VA as an advocate, and when service connection is obtained, the funding fee is waived.
  • to defray cost of administrating VA home loan program, borrower must pay a funding fee at the time of closing. Funding fee can be financed or baked into the loan amount but no other fees or discount points can be included. compared to origination fees for regular mortgage...the funding fee for loan assumption is a bargain. You can assume a mortgage at .50% funding fee on remaining mortgage balance... big savings
  • I have only had one VA client eligible for disability so he was exempt from the funding fee.
  • I have not had any experience with funding fees.
  • I have not had any issues with the VA Funding fees. The lender has been very helpful in guiding and verifying paperwork.