Many Veterans have the Funding Fee Waived in Idaho & Oregon. Call TODAY to see you're one of them!
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.
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.
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.
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.
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.
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.
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.
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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