Yes, you can buy points on a VA loan. The funding fee is a separate cost. Points reduce your rate permanently just like on other loan types.
Compare the total cost including the funding fee when evaluating points on a VA loan. The math still works the same: divide the point cost by monthly savings to find your break-even. Patrick Kevin Fagan helps veterans and military families in San Antonio evaluate VA loan points.
VA Loan Points
VA loans allow discount points just like conventional and FHA loans. One point typically costs 1% of the loan amount and reduces your rate by about 0.25%. The rate reduction is permanent for the life of the loan. Patrick Kevin Fagan explains how VA points work for veterans buying homes in San Antonio and the Texas Hill Country.
VA Funding Fee
The VA funding fee is a separate charge that goes to the Department of Veterans Affairs. It is not related to points. The funding fee can be rolled into the loan amount or waived for veterans with service-connected disabilities. Points are in addition to this fee. Patrick Kevin Fagan guides military buyers through the full VA loan cost structure.
Total Cost Analysis
When evaluating points on a VA loan, factor in the total upfront cost including both points and any portion of the funding fee you choose to pay upfront. Compare against the monthly savings to find your true break-even. Patrick Kevin Fagan runs these numbers for clients throughout greater San Antonio.
When Points Are Worth It on VA
VA points make sense when you plan to stay in the home long enough to break even, typically 3-5 years. With zero down payment and no PMI, VA loans already have strong monthly payment advantages. Adding points can further optimize your payment. Call 210-317-6514 to discuss your VA loan options.
