funding fee. (1) A fee charged to the borrower by the Veterans Administration for guaranteeing a loan. (2) A fee charged by lenders as additional profit,and which may be negotiated downward.What is a loan funding fee?
Definition of Funding Fee Funding Fee means the funding fee for the Loan previously paid to Lender in an amount equal to 1.5% of the Loan Amount.How do you determine the VA funding fee?
VA home loans require an upfront, one-time payment called the VA funding fee. The fee is determined by the loan amount, your service history, and other factors. VA home loan applicants can pay all or part of the fee in cash, or wrap it into the loan amount to reduce out-of-pocket expenses. Here are charts that show common funding fee amounts.