VA funding fee
A one-time fee on VA loans that helps fund the program, figured as a percentage of the loan and often added to the balance. The rate depends on down payment and prior VA use; veterans with service-connected disability are generally exempt.
Also called: funding fee, VA fee
Related terms
A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans, service members and some surviving spouses. It usually needs no down payment and no monthly mortgage insurance, but most borrowers pay a one-time funding fee.
Fees and charges paid at closing on top of the price, such as lender fees, title insurance, recording fees, taxes and prepaid items. Buyers often pay around 2% to 5% of the price; sellers pay their own set of costs.
The part of the purchase price you pay in cash rather than borrow. A larger down payment lowers the loan amount and can remove the need for mortgage insurance on a conventional loan.
Mortgage insurance on FHA loans, made up of an upfront premium usually added to the loan plus an annual premium paid monthly. With less than 10% down, the annual premium lasts for the life of the loan.
A mortgage a buyer can take over from the seller, keeping its rate and remaining term. FHA, VA and USDA loans are generally assumable with lender approval; most conventional loans are not. The buyer pays the seller's equity in cash or other financing.