funding fee definition
The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. Examples are: payment of pre-paid closing costs, VA funding fee, payoff of credit balances or judgments for the Veteran, and funds for temporary buydowns. Payment of discount points is not subject to the 4% limit.). 2  You are not allowed to pay for the termite report, unless the loan is a refinance.