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Some borrowers vilify the VA funding fee. The fee is sometimes perceived as an added expense that makes VA loans cost more. Most first-time VA loan users pay 2.15% of their purchase amount. This fee can be paid upfront or rolled into the loan. Eligible disabled veterans and surviving spouses are exempt. In todays tough lending climate, the VA funding fee affords borrowers many cost-saving advantages over other programs. This hypothetical estimate of three 30-year loans of $200,000 can help show the savings:
