 TITLE: What Is a VA Loan? CONTENT: What Fees Come With VA Loans?\n-----------------------------\nAs with conventional home loan lenders, financial institutions that issue VA loans may charge origination fees to cover the costs of processing the loan. The amount of these fees varies by lender, and is typically higher for applicants with lower credit scores.\nIn addition, most VA loan recipients must pay a percentage of the purchase value, known as the funding fee, to help offset the cost of VA benefits to U.S. taxpayers. Details are spelled out at the VA website, but the fee varies depending on several factors, including:\n*   The nature of your service (reservists pay higher fees than full-time military)\n*   Whether or not you make a down payment on the purchase. As with origination fees on many conventional mortgages, you can \"buy down the points\" on your funding fee by making a down payment on the loan.\n*   Whether you're using your VA entitlement for the first time, or applying it to a new loan after paying off your initial one. (Fees are higher the second time around.)\nThis table summarizes the 2019 funding fees for first-time VA loan borrowers:\nThe following individuals are exempt from paying VA funding fees:\n*   Those receiving VA compensation for a service-related disability\n*   Those who would be eligible for compensation for a service-related disability if they were not receiving retirement or active-duty pay\n*   Surviving spouses of those who died in service or from a service-related disability\nLender origination fees and VA funding fees can be added to the purchase price of your home and financed over the life of the loan. This increases your monthly payments somewhat and adds to the total cost of the loan over its lifetime, but enables you to close on the loan without having to pay any cash up front. END