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VA Funding Fee 

We understand the importance of our proud veterans having a clear and transparent understanding of the VA Home Loan Process and fees involved. The VA Funding Fee is paid directly to the Department of Veteran’s Affairs and is the reason they can guarantee this no-money-down loan program. This fee exists so that VA eligible borrowers can enjoy loan benefits such as $0 down financing and no mortgage insurance (PMI) payments.

VA Funding Fee Chart

The VA Funding Fee is calculated by looking at 4 different factors: Loan type (Purchase or Refinance), type of service, down payment (if any) and the use of a prior VA loan product. The charts below determine  the amount of your VA Funding Fee.

Purchase First Time Use

 

Down Payment Active Duty/Retired Guard/Reserve
$0 Down 2.15% 2.40%
5-10% Down 1.50% 1.75%
10% or More 1.25% 1.50%
Purchase Additional Use

 

Down Payment Active Duty/Retired Guard/Reserve
$0 Down 3.30% 3.30%
5-10% Down 1.50% 1.75%
10% or More 1.25% 1.50%
Cashout Refinance

 

VA Usage Active Duty/Retired Guard/Reserve
1st Time Use 2.15% 2.40%
Additional Use 3.30% 3.30%
RRL (Interest Rate Reduction Loan)

 

VA Usage Active Duty/Retired Guard/Reserve
1st Time Use 0.5% 0.5%
Additional Use 0.5% 0.5%

How the Funding Fee is Paid

The VA Funding Fee is typically included in the loan, and it can also be paid by the seller or by the borrower at the closing table.

VA IRRL

A VA IRRL is a refinance of an existing VA mortgage. If you are refinancing from any other loan type that is not VA, the loan cannot be an IRRL and standard underwriting guidelines, funding fees and appraisal requirements may apply.

VA Funding Fee Exemptions

VA borrowers are exempt from paying a funding fee if they receive any disability payments from the VA or are considered at least 10% disabled.

For More Information call us at 855-90-MORTGAGE