Do I pay the VA funding fee again on a refinance?
Yes for non-exempt borrowers. IRRRLs pay a small fixed funding fee (much lower than purchase). Cash-out refinances pay a fee comparable to first/subsequent purchases. Exempt borrowers pay no funding fee on either.
What this actually means.
The funding fee is a per-transaction cost, not a one-time-ever cost. Refinances each carry their own fee unless the borrower is exempt. The fee can usually be financed into the new loan amount. Disability ratings issued retroactive to before the closing date can sometimes generate a refund.
Where this can move.
VA seasoning rules, net-tangible-benefit recoupment, current loan type, equity, credit, rate environment, and IRRRL vs cash-out eligibility can change the answer.
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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.