I am often asked what is a VA funding fee? A VA funding fee is just like an insurance policy for the lender that loans the money for the home. The VA ‘guarantees’ the lender against default. So if something goes wrong and the homeowner can no longer make the payments, the lender will be covered for any loss by the VA. Unfortunately just like with auto insurance, everyone pays for it and the only ones that benefit from it are the lenders and the people that have to ‘cash in’ on the policy, but EVERYONE that obtains a VA loan pays for it. There are exceptions to a VA funding fee and that is for those who are exempt. That’s another topic! If you cant’ wait for my next blog to find out who is and is not exempt from the funding fee, I encourage you to reach out to me and I’d be more than happy to discuss!
Your Lender For Life,
Maureen Martin 🙂