Are you thinking about refinancing your current VA home loan? If so you are not alone, many veterans are taking advantage of the lower rates and refinancing either with the VA cash out refinance loan or the VA IRRRL program. One of the benefits of the interest rate reduction refinance loan is that is designed to be a quick and easy streamlined process. that being said many veterans have questions about the VA IRRRL funding fee. The VA funding fee is an important topic right now because it’s very prevalent in the market place. So in this article we are going to go over the VA IRRRL funding and hopefully answer some of the most common questions of what the VA funding fee is and why you as a veteran have to pay it when purchasing a home or refinancing.
What is the VA IRRRL Funding Fee
So as a veteran using your VA home loan benefits you are required to pay the VA funding fee. Many veterans ask why are we required to pay the funding fee and here is the simple answer, in a nutshell the fee is designed as a safety net for the VA. These fees help protect against loans that go into default and allow the VA to back the VA home loan program. Even though the Veterans Administration does not issue the loans they back up to 25% of the loan. In doing so VA lenders feel more secure and are able to offer loans with the benefits of the VA home loan program.
VA IRRRL Funding Fee Chart
|Type of Loan||Percentage for Either Type of Veteran Whether First Time or Subsequent Use|
|Manufactured Home Loans (NOT permanently affixed)||1.00%|
If you would like to learn more about the VA funding fee or the more about how refinancing could improve your situation give us a call at 855-956-4040.