Change Date

September 15, 2004, Change 4

This section has been changed to create subsection lettering.

a. Policy

The VA home loan program involves a veteran’s benefit. VA policy has evolved around the objective of helping the veteran to use his or her home loan benefit.  Therefore, VA regulations limit the fees that the veteran can pay to obtain a loan.

Lenders must strictly adhere to the limitations on borrower-paid fees and charges when making VA loans.

b. The VA Funding Fee

In order to defray the cost of administering the VA home loan program, each veteran must pay a funding fee to VA at loan closing.

Congress may periodically change the funding fee rates to reflect changes in the cost of administering the program, or to assist a certain class of veterans.