FAQ: How is the VA Funding Fee Percent Calculated in Charlie?

Modified on Sat, 29 Mar at 9:26 AM

The VA funding fee percent is determined based on loan type, borrower usage (first-time or subsequent use), down payment percentage, and VA exemption status. Charlie automates this calculation to ensure accuracy and compliance with VA guidelines.

This FAQ explains how the VA funding fee percent is applied within Charlie, including rounding rules, required inputs, and the percentage structure for different loan scenarios. By using Charlie’s automated system, lenders can efficiently calculate the correct VA funding fee percent for each loan transaction.

Details:

Input Fields

The following fields are used to trigger the calculation of the VA funding fee amount percent:
- Mortgage Type = VA
- Loan Purpose Type = Purchase, Refinance or Other
- Refinance Type = IRRRL, Cash Out
- Previous VA home loan indicator
  - If no = first use
  - if yes = subsequent use
- Down Payment Percent
- VA Loan Program Type

Parameters

Based on Loan Fee Rates for Loans Closing On or After April 7, 2023 and prior to November 14, 2031

Purchase Loan - First-Time VA Loan Borrower Funding Fee:

Down Payment Percent Less than 5% = 2.15%.
Down Payment Percent Between 5% and 10% = 1.5%.
Down Payment Percent Greater than or Equal to 10% = 1.25%.

Purchase Loan - Subsequent VA Loan Borrower:

Down Payment Percent Less than 5% = 3.3%.
Down Payment Percent Between 5% and 10% = 1.5%.
Down Payment Percent Greater than or Equal to 10% = 1.25%.

Cash-Out Refinance:

First-Time VA Loan Borrower: = 2.15%.
Subsequent VA Loan Borrower = 3.3%.

Interest Rate Reduction Refinance Loan (IRRRL)

0.5%.

Native American Direct Loan (NADL)

1.25%