Can the VA funding fee be financed into the loan?
Yes. Most non-exempt borrowers roll the funding fee into the loan amount rather than paying it in cash at closing. That increases the loan amount and the monthly P&I but preserves cash.
What this actually means.
Financing the funding fee is the default on most VA purchases — it pushes the loan-to-purchase ratio above 100% but the VA accepts that on funding-fee-financed files. Paying it in cash lowers the loan amount and total interest paid; it requires more cash at closing. Compare both scenarios with your lender. Subject to VA guidelines.
Where this can move.
First/subsequent use, down payment percentage, loan type (purchase, IRRRL, cash-out), and exemption status (disability, surviving spouse) drive the fee.
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Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.