Loan programs
VA funding fee
Definition
The VA funding fee is a one-time charge on VA-guaranteed home loans that helps fund the program. For a first-use purchase it is 2.15% with less than 5% down, 1.5% with 5% to under 10%, and 1.25% with 10% or more; subsequent use with under 5% down is 3.3%. Many veterans with service-connected disabilities are exempt.
VA funding fee, explained
The fee can be paid at closing or financed into the loan. Rates shown are effective April 7, 2023, per VA.
An IRRRL (streamline refinance) carries a 0.5% fee.
See va funding fee in a calculator
The VA Loan Calculator shows how this works with real numbers. VA mortgage payment with the VA funding fee — for eligible veterans and service members.
Open the VA Loan CalculatorRelated terms
- FHA loanAn FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD.
- Closing costsClosing costs are the fees and prepaid items due when a mortgage closes, beyond the down payment: lender fees, appraisal, title insurance, recording fees, transfer taxes, prepaid interest and initial escrow deposits.
Q.01What is va funding fee?
The VA funding fee is a one-time charge on VA-guaranteed home loans that helps fund the program. For a first-use purchase it is 2.15% with less than 5% down, 1.5% with 5% to under 10%, and 1.25% with 10% or more; subsequent use with under 5% down is 3.3%. Many veterans with service-connected disabilities are exempt.
Q.02Who is exempt from the VA funding fee?
Among others, veterans receiving VA compensation for a service-connected disability and certain surviving spouses. Check the VA’s eligibility list.
Q.03Can the funding fee be financed?
Yes, it is commonly added to the loan amount.
Explain it with their numbers
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