VA Funding Fee Calculator
Calculate your VA funding fee total based on your loan type, loan balance, down payment, and other factors.
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Latest VA Funding Fee Rates and Exemptions
What is the VA Funding Fee?
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.
How to Calculate the VA Funding Fee
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.
VA Purchase Funding Fee Rates in 2023
| Down Payment | Fee for First Use | Fee After First Use |
|---|---|---|
| None | 2.30% | 3.60% |
| 5% to 10% | 1.65% | 1.65% |
| 10% or More | 1.40% | 1.40% |
If you’re using a product other than a VA purchase or construction loan, here’s how those funding fees break down:
VA Refinance and Other Funding Fee Rates in 2023
| VA Loan Type | Funding Fee |
|---|---|
| IRRRLs | 0.5% |
| Cash-out refinance | 2.3% on first use, 3.6% on subsequent uses |
| NADL | 1.25% for purchases, 0.5% on refinances |
| Loan assumptions | 0.5% |
| Manufactured home loans | 1% |
| Vendee loans | 2.25% |
Can the Funding Fee Be Waived?
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:
- Service members who receive VA compensation for a service-connected disability (or who are eligible to, but receive retirement or active-duty pay instead)
- Surviving spouses (if eligible for a VA home loan)
- Purple Heart recipients
- Service members eligible for compensation based on a pre-discharge review
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.
Can the VA Funding Fee Be Financed?
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.
VA Funding Fee Refund
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.
