How To Lower Your VA Funding Fee While Avoiding VA Adjustable Rate Mortgages
One of the most attractive things about VA loans is that you are not required to make a down payment. Because VA loans are backed by the U.S. Department of Veterans Affairs, the down payment is optional. But if you make no down payment or a very small down payment, that will affect your VA funding fee. Essentially, when buying a house, the lower your down payment, the higher your funding fee. So, there’s a downside to making a small down payment on your VA loan.
But there are ways to lower your VA funding fee. You may even be able avoid it completely if you’re eligible to receive VA compensation for a service-connected disability, since there are funding fee exemptions for Veterans. In this article, we’ll explain how to lower or avoid your funding fee, plus give you more tips and tricks to lower your VA mortgage costs. In particular, we’ll go over the big differences between a 15-year mortgage and a 30-year mortgage, plus let you in on the truth about adjustable rate mortgages.