# VA Funding Fee Explained (And How Some Buyers Avoid It)
If you’re buying a home near **Fort Campbell** or in **Clarksville, TN**, you’ve probably heard the phrase “VA funding fee” tossed around like everyone is supposed to already know what it means.
And if you’re thinking, “Cool. Another mysterious fee with a name that sounds like it belongs in a government filing cabinet,” you’re not wrong.
But here’s the good news: the VA funding fee is **not** a monthly charge, it’s often **financeable**, and some buyers are **exempt**.
Think of this like **Google Maps for mortgages**: you don’t need to memorize every road name. You just need to know what’s ahead, what it costs, and which exits to take so you don’t get surprised at the last minute.
I’m Kate Deiboldt (NMLS **18487**), and I help military families and veterans in **Clarksville/Fort Campbell** map a clear, calm path to closing—even if you’ve been told no before.
### Quick summary (so you can breathe)
– The **VA funding fee** is a **one-time fee** on most VA purchase loans.
– It helps keep the VA loan program running for future service members.
– Many buyers can **roll it into the loan** instead of paying it out of pocket.
– Some borrowers are **exempt** (often those receiving VA disability compensation, and certain surviving spouses).
– Strategy matters: we look at exemption status, cash-to-close, and payment impact—then choose the cleanest route.
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## What is the VA funding fee?
The VA funding fee is a **one-time charge** that applies to many VA loans. It’s not interest, it’s not PMI, and it’s not a recurring monthly fee.
It’s essentially the VA’s way of helping fund the program so it can continue offering big benefits like:
– **$0 down** options
– **No monthly mortgage insurance (PMI)**
– More flexible guidelines than many conventional loans
In plain English: it’s part of how the VA keeps the VA loan benefit strong.
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## Do all VA borrowers have to pay the funding fee?
Nope—and this is where things get interesting.
Many VA borrowers do pay it, but **some are exempt**.
### Common exemption situations (not a full legal list)
– Veterans receiving **VA disability compensation**
– Veterans who are **eligible to receive** disability compensation (even if it’s not currently being paid)
– Certain **surviving spouses**
If you’re not sure whether you’re exempt, that’s normal. We verify it properly—because guessing is not a strategy.
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## What affects how much the funding fee is?
The amount can vary based on factors like:
### 1) First-time vs. subsequent VA use
Generally, first-time use is different than using your VA benefit again.
### 2) Down payment amount (if any)
Some borrowers choose to put money down even on a VA loan. That can affect the fee.
### 3) Loan type
Purchase vs. other VA loan types can be treated differently.
The key takeaway: **there isn’t one universal number**. That’s why I always prefer to map it to your exact scenario.
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## Can the VA funding fee be financed?
In many cases, yes—the funding fee can be **rolled into the loan amount**.
That means you may not have to bring that money to closing as part of cash-to-close.
### The tradeoff (because there’s always a tradeoff)
Financing it can:
– lower cash needed at closing
– slightly increase your loan amount
– slightly increase your monthly payment
Whether that’s a good idea depends on your goals, timeline, and comfort level.
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## The real-world strategy: how we decide what’s best
This is where my “Deal Doctor” brain kicks in.
When we map your path, we look at:
### 1) Are you exempt?
If yes, amazing—that can simplify the math.
### 2) If not exempt, should you finance it?
Sometimes financing is the cleanest route. Sometimes paying it (or covering it through other strategies) makes more sense.
### 3) What’s your real cash-to-close?
Online calculators are notorious for leaving out key pieces—or assuming things that don’t apply to VA.
### 4) How does it affect your payment?
We build your payment around *real* numbers: taxes, insurance, and any HOA—not just principal and interest.
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## A quick note on other VA-related fees (and what we waive)
For VA homebuyers, **we waive underwriting and processing fees**.
Important compliance note: that does **not** mean there are no other closing costs involved, and it does **not** imply there is no origination fee.
My goal is simple: no surprises, no vague answers, and no “gotcha” moments at the closing table.
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## Practical takeaways
– The VA funding fee is **one-time**, not monthly.
– Many buyers can **finance** it into the loan.
– Some buyers are **exempt** (often disability-related).
– The smartest move depends on your exemption status and your cash-to-close goals.
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## FAQ: VA Funding Fee (10 questions)
### 1) What is the VA funding fee?
A one-time fee on many VA loans that helps fund the VA loan program.
### 2) Do all VA borrowers pay it?
No. Some borrowers are exempt.
### 3) Can the funding fee be financed?
Often, yes—it can be rolled into the loan.
### 4) How do I know if I’m exempt?
We verify your VA eligibility/exemption status through the proper channels.
### 5) Does disability rating matter?
Disability-related exemptions are common, but the best approach is to verify your specific status.
### 6) What if my disability is pending?
In some cases, borrowers may be eligible for exemption if disability is awarded. We’ll map the timing and documentation.
### 7) Is the funding fee refundable?
In certain scenarios it may be—depending on VA determinations. We’ll talk through what applies to you.
### 8) Does the seller pay the funding fee?
Typically, the funding fee is tied to the borrower, but there are negotiation strategies that can help with overall closing costs.
### 9) How does it affect my payment?
If financed, it slightly increases the loan amount and payment. We’ll show you the exact difference.
### 10) What should I do before I make an offer?
Get a true pre-approval and a clear cash-to-close estimate that accounts for the funding fee correctly.
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## Your next step (soft, simple, and actually helpful)
If you’re a **Fort Campbell** buyer, tell me whether you receive **VA disability benefits** (or if a claim is pending), and I’ll map what to expect—clearly and calmly.
**CTA:** Want your real cash-to-close number with the funding fee handled correctly? Visit **www.justcallkate.info** and I’ll create a personal “Google Maps” route to mortgage approval.
**Kate Deiboldt (JustCallKate)**
**NMLS #18487**
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