VA Loan Funding Fees

The VA funding fee is a one-time fee paid to the Department of Veterans Affairs (VA) to reduce taxpayer burden and ensure the program's longevity for future generations.

The VA funding fee is due at closing. However, VA borrowers have the option to finance the VA funding fee into the entire loan amount to reduce the amount of cash needed at closing.

As of January 1, 2020, VA funding fees increased slightly, from 2.15 to 2.30 percent for first-time use and 3.30 to 3.60 percent for subsequent use. Below are the current VA funding fees by service type and down payment.

For Purchases
Type of Veteran Downpayment 1st Time Use Subsequent Use
Regular Military None 2.30% 3.60%
5% to 10% 1.65% 1.65%
10% or More 1.40% 1.40%
Reserves / National Guard None 2.30% 3.60%
5% to 10% 1.65% 1.65%
10% or More 1.40% 1.40%

VA Funding Fee Exemptions

In most cases, Veterans utilizing their VA loan benefits must pay the VA funding fee. Those exempt from the VA funding fee include:

  • Veterans receiving VA compensation for service-connected disabilities, or
  • Veterans with a disability rating of 10% or higher, or
  • Veterans who received a Purple Heart, or
  • Surviving spouses of veterans who died in service or from service-connected disabilities.

Get Started With Your VA Loan Request

Take the first step in your VA Loan by getting in touch with a Home Loan Specialist.
We are not a Government agency. No obligation. It takes 2 minutes.

See a related article: VA Loan Guidelines Explained

VA Loans Specialist VAMC

Home Loan Specialists

We are the online Home Loan Specialists. It is our goal to ensure that your VA Home Loan process goes as smoothly as possible. Let us help you get the process started today online, or call us at 800-405-6682.

Have a Question?

If you need advice concerning Veteran Home Loans, feel free to contact a Home Loan Specialist online or call 800-405-6682. Specialists can help determine whether a Veteran Home Loan is the best financial decision for you.

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