Calculate your VA funding fee total based on your loan type, loan balance, down payment, and other factors.
Double-check your numbers with a home loan specialist today.
The VA funding fee is a one-time fee paid to the Department of Veterans Affairs (VA) that supports the VA home loan program. This fee is paid by the Veteran or service member using the VA loan. This helps reduce taxpayer burden and ensure the program’s longevity for future generations.
These fees go directly toward supporting the VA loan program and should not be confused with origination fees — which are fees charged by your lender.
For the most part, all VA loans come with a funding fee, though there are some exceptions. In some cases, a VA borrower may be exempt from the fee. It may also be rolled into the loan amount and paid off over time.
The VA funding fee is a flat percentage of your loan. This percentage depends on the type of loan you’re getting, your loan balance, the size of your down payment, and the number of times you’ve used your VA loan benefit. If you’re able to contribute a down payment at closing, you can reduce your fee significantly. Generally speaking, you’ll pay less for your funding fee the larger your down payment is.
|Down Payment||Fee for First Use||Fee After First Use|
|Less than 5%||2.15%||3.30%|
|5% to 10%||1.50%||1.50%|
|10% or More||1.25%||1.25%|
If you’re using a product other than a VA purchase or construction loan, here’s how those funding fees break down:
|VA Loan Type||Funding Fee|
|Cash-out refinance||2.15% on first use, 3.3% on subsequent uses|
|NADL||1.25% for purchases, 0.5% on refinances|
|Manufactured home loans||1%|
Not every borrower has to pay the VA funding fee. Some Veterans and service members are exempt due to disability status or military honors.
Here are the borrowers who are currently exempt from VA funding fees when using their loan benefit:
If you’re unsure if you qualify for an exemption, look to your Certificate of Eligibility. It should indicate if you’ll need to pay a funding fee.
If you can’t afford your funding fee, you have the option to finance it. Your lender can simply add the fee to your total loan balance, and you’d pay it off monthly, as you do the rest of your mortgage.
If you’re awarded disability compensation after your VA loan closes, you may qualify for a funding fee refund. To apply for this, you’d need to talk to your VA Regional Loan Center for more guidance.