A basic funding fee of 2.0 percent must be paid to VA by all but certain exempt veterans. A down paymenti of 5 percent or more will reduce the fee to 1.5 percent and a 10 percent down payment will reduce it to 1.25 percent.

A funding fee of 2.75 percent must be paid by all eligible Reserve / National Guard individuals. A down payment of 5 percent or more will reduce the fee to 2.25 percent and a 10 percent down payment will reduce it to 2.0 percent.

The funding fee for loans to refinancei an existing
VA home loan with a new VA home loan to lower the existing interesti ratei
is 0.5 percent.

Veterans who are using entitlement for a second or
subsequent time who do not make a down payment of at least 5 percent are
charged a funding fee of 3 percent.

NOTEi: For all VA home loans, the funding fee
may be paid in cash or it may be included in the loan.

In addition, reasonable closingi costsi may be charged
by the mortgagei company. These costs may not be included in the loan.
The following items may be paid by the veteran purchaser, the seller,
or shared. Closing costs may vary among companies and also throughout
the nation because of differing local laws and customs.

VA loan costs may include VA appraisali, crediti reporti,
loan originationi fee (usually 1 percent of the loan), discounti pointsi,
titlei searchi and title insuranceii, recordingi fees, state and/or local transfer
taxes, if applicable, surveyi

No commissions, brokerage fees or "buyer brokeri"
fees may be charged to the veteran buyer.