VA Loan Funding Fees

The VA Funding Fee is a one-time fee charged on a VA Loan in order to limit the overall cost of the VA Loan, considering the VA Loan requires no down payment and has no monthly mortgage insurance. The VA Funding Fee is non-refundable; however the fee does not have to be paid prior to the closing of the loan and can be financed into the loan, which is what most VA borrowers opt for. The VA Funding Fee is also an allowable seller concession, but it must be factored into the 4% maximum that is allowed for seller concessions.

The VA Funding Fee ranges from 2.15% to 3.3% of the loan amount on purchases and .5% to 3.3% of the loan amount on refinances. The following table breaks down how the VA Funding Fee is determined.

For Purchases
Type of Veteran Downpayment 1st Time Use Subsequent Use
Regular Military None 2.15% 3.30%
5% to 10% 1.50% 1.50%
10% or More 1.25% 1.25%
Reserves / National Guard None 2.40% 3.30%
5% to 10% 1.75% 1.75%
10% or More 1.50% 1.50%

As the table points out, there is a slight difference in the VA Funding Fee depending on whether you were active duty or spent time in the Reserves/National Guard.

Of course, there are scenarios where a borrower is exempt from a VA Funding Fee, and the VA outlines the following as being exempt regardless of a first or subsequent use of a VA Loan:

  • Veterans receiving VA compensation for service-connected disabilities.
  • Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
  • Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan.)

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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