VA Wednesdays: The VA Funding Fee "Landmine" 💥Real Estate Tips, VA Loan, and VA Mortgages 🏡 - YouTube

The va funding fee. Yes, the va funding fee is something that's

Incredibly misunderstood and as a lender, it's fraught with loan with

Why can't I talk? Why can't I talk it is fraught with land mines. Yes. It's brought with land mines

Here's the deal with it. So

Basically, um, you've got your first time use 100 down 2.3. You've got your subsequent use 3.6

If you're exempt, it's zero, you know, this is for purchase

I'm, just going to talk about purchases and we'll get into refinances in a minute and as a lender we want to disclose

Meaning that we send you the initial loan documents as accurate as possible

however, if at the time of disclosure

We don't have your certificate of eligibility yet. I will disclose the highest amount and you're like, oh, why are you doing that?

Well, it's simple as a lender once you get burnt a couple times

You take precautions. So let me give you some examples. Um, so i've had people where they're like, no i'm exempt I swear

I'm exempt and then we get the certificate of eligibility and they're not exempt

Well, if the certificate of eligibility says you're not exempt guess what you're not exempt you have to pay the fee

We have to follow what the certificate of eligibilities tell us. Okay

um, and if as a lender

Let's say that I disclosed no funding fee. And then we get the certificate of eligibility and you have a funding fee

Well, it's a change in circumstance

But if we don't redisclose it quick enough we can end up stuck with the funding fee

which is a big problem it can make it so your loan doesn't come through because

How is the lender supposed to cover that amount? It's a lot of money. It's a lot of money

Um, so the other way it can happen is sometimes and i've had this happen twice

twice in the last 60 days

Where someone said? Oh, yeah, you know we've never used our va before and then I get the certificate of eligibility and i'm like

you have you you did use your va before and you know, you have a house that has a vehicle and they're like

Oh we forgot

And that's fair. Like I could totally forget what loan I used on buying a house 10 years ago or 15 years ago like

How are you supposed to remember that but with the va funding fee, it's so important because that subsequent use that 3.6

is a lot higher than 2.3 so

Until we have the certificate of eligibility and what's really nice is like 9 out of 10 times

if you fill out an application with us within 24 hours, I have it because

Our the guys who do our tech at guaranteed rate are pretty darn cool

So a big shout out to them they make it so that we can do stuff

Um, just so much more efficiently. So I do appreciate them for that

Um anyways, but we have a bot that goes through and it pulls the va's certificate of eligibilities

One out of ten. It doesn't work

And on the one out of ten, you know

We are going to need more documentation in order to order the certificate of eligibility directly from va and sometimes it's 24 hours

Sometimes it's three days

Sometimes we even need more documentation. I had a purchase recently where it took two weeks to get it

It was brutal and it wasn't just the va it was the borrower finding the documentation submitting the documentation

So here's the thing if the lender sends your initial disclosures and it has 3.6

Do not freak out guys, we can't legally at the end of the transaction

charge you more than we are required to we would get in so much trouble with ginny may it would be

Insane it is not worth it. We can't make money off of it

There's nothing crooked someone can do with the funding fee

So just know that at closing your funding fee is always going to be fine-tuned. So don't freak out about that. Um,

And I just keep on telling people this because i'm like without your certificate of eligibility

I'm going to disclose at the highest amount because until I have that in my hands

I'm not taking any risks with your loan. I'm not taking any risks with my company. It's that simple

so

The other thing is with refinances. So with refinances it's easier. It's really simple if you're doing a

Earl, it's 0.5. Or you're exempt now if you're exempt and I don't have your certificate of eligibility. I am going to disclose at 0.5

Gotta cover those bases. Remember guys? I'm just trying to make sure that I don't get hit with an issue on a funding fee

Um, if you're doing a cash out, well, that's a different story. So once again i'm gonna wait for that certificate of eligibility to see

If you're exempt or if you're not exempt

so a lot of times people call me and they're like the lender's so stupid they disclose this and i'm like ah,

They're not stupid. They're just being careful because the bottom line and the most important thing that you guys should take away from this video

A lender cannot charge you more of a va funding fee than what is required by the va

If they did they would face penalties fees it would be

Brutal, so you're not going to see lenders trying to rip you off on the funding fee if you get disclosures and the funding fee

Is higher it's most likely because they do not have your certificate of eligibility yet

So I hope this has been helpful as always. I am licensed in 44 states. If this was helpful, can you like it?

Apparently I really need to push like and subscribe so

like and subscribe

Or hate and don't whatever works for you. Anyways, thanks for watching and I hope you're having a good wednesday