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Idaho & Oregon's Experienced Home Loan Lender for Veterans Home Loan

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VA Funding Fee in Idaho: What Veterans Need to Know

The VA funding fee in Idaho is a one-time cost that veterans and service members may need to pay when using a VA loan. This fee helps support the VA home loan program and allows it to continue offering zero-down financing to those who serve. In this article, we'll explain how the fee works, who pays it, and who might be exempt.


What Is a VA Funding Fee?

The VA funding fee is a one-time charge on VA home loans. The Department of Veterans Affairs requires it to help support the loan program.

It's not paid every year. Instead, it's added once - either at closing or rolled into your loan. This makes it easier to handle.

The fee amount is based on:

  • Your military service history

  • Whether this is your first or second VA loan

  • The type of VA loan

  • The size of your down payment

While this may sound like a lot, the VA funding fee is usually much lower than the cost of mortgage insurance on other loan types.


How Much Is the VA Funding Fee?

The fee is a percentage of your total loan amount. Here are a few examples:

  • First-time use, 0% down payment: 2.15%

  • Second-time use, 5% down payment or more: 1.5%

  • Loans for refinance or other uses may have different fees

Most people choose to roll the fee into the loan so they don't pay it out of pocket.


Who Pays the VA Funding Fee?

Nearly all veterans, active-duty service members, and surviving spouses pay this fee. It applies to both purchases and refinances.

However, the fee helps the VA keep offering zero down payment loans. That means it helps you - and future veterans - buy homes with fewer hurdles.


Who Doesn't Have to Pay the VA Funding Fee?

There are a few important exemptions. You don't have to pay the VA funding fee in Idaho if:

  • You receive VA disability compensation

  • You're a surviving spouse of a veteran who passed away from a service-related cause

  • You're eligible for disability, but instead receive retirement pay

Before applying, ask your lender to check your Certificate of Eligibility (COE). It will show whether you qualify for a waiver.


Why the VA Funding Fee Matters

Although it adds to your loan, the funding fee allows the VA to offer loans with:

  • No down payment

  • No monthly mortgage insurance

  • Competitive interest rates

Even with the fee, VA loans are one of the best options for Idaho veterans.


Let's Wrap It Up

The VA funding fee in Idaho is a one-time cost. But it supports a loan program that helps thousands of veterans buy homes each year. In many cases, it's more affordable than traditional loan fees.

Want help understanding your funding fee or seeing if you’re exempt? Give 1st Choice Mortgage a call. We’re Idaho's trusted VA loan experts.

Veterans Administration Funding Fee Chart, Updated February 14, 2023, effective as of 04/07/2023.

Purchase:  First Time Home Buyer
Down Payment Active Duty/Retired Guard / Reserve
$0 Down 2.15% 2.15%
5-10% Down 1.50% 1.50%
10% or More 1.25% 1.25%
     
Purchase:  Additional Use
Down Payment Active Duty/Retired Guard / Reserve
$0 Down 3.30% 3.30%
5-10% down 1.50% 1.50%
10% or More 1.25% 1.25%
     
Cashout Refinance
VA Usage Active Duty/Retired Guard / Reserve
1st Time Use 2.15% 2.15%
Additional Use 3.30% 3.30%
     
IRRL (Interest Rate Reduction Loan or Streamline)
VA Usage Active Duty/Retired Guard / Reserve
1st Time Use 0.50% 0.50%
Additional Use 0.50% 0.50%

Questions on VA Loans? Don’t hesitate in calling us, we are VA experienced! We Serve Veterans in
Boise, Meridian, Nampa (208) 375-5626

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