VA Funding Fee Charts

Updated: January 5, 2024
In this Article

    The VA loan is a benefit exclusive to veterans, military members and surviving military spouses. The program offers competitive interest rates, the option of $0 down payment and flexible credit requirements. However, one crucial aspect of VA loans that may not be as widely understood is the VA funding fee.

    The VA Funding Fee

    The VA funding fee is an upfront cost of using the VA loan. Not every borrower pays the VA funding fee, and those that can finance the fee into the entire loan amount. The VA funding fee goes directly to the Department of Veterans Affairs (VA) to offset the cost of administering the program.

    The VA funding fee applies to all purchase and refinance loans when the borrower does not qualify for an exemption. Borrowers exempt from paying the VA funding fee include those receiving VA disability compensation, Purple Heart recipients and surviving spouses. 

    Borrowers can pay the VA funding fee upfront or finance it into their mortgage.

    VA Funding Fee Chart

    VA funding fee percentages vary based on the loan type, prior usage of the VA loan and down payment.

    VA Funding Fee Chart for Purchase and Construction Loans

    Down Payment %VA Funding Fee
    First Use0 to less than 5%2.15%
    5% to less than 10%1.5%
    10% or more1.25%
    Subsequent Use0 to less than 5%3.3%
    5% to less than 10%1.5%
    10% or more1.25%

    VA Funding Fee Chart for Refinance Loans

    Refinance TypeVA Funding Fee
    Cash Out (first use)2.15%
    Cash Out (subsequent use)3.3%
    IRRRL (VA Streamline)0.5%

    VA Funding Fee Chart for Other Loan Types

    Loan TypeVA Funding Fee
    Manufactured Home (not permanently fixed)1%
    VA Loan Assumption0.5%

    How to Calculate the VA Funding Fee

    To calculate the VA funding fee, multiply the loan amount by the applicable funding fee percentage (VA funding fee = loan amount x funding fee percentage).

    For example, let’s assume a first-time homebuyer purchases a home for $200,000 with no down payment. The VA funding fee percentage for first-time homebuyers with $0 down is 2.15%. In this case, the VA funding fee calculation is $200,000 x 0.0215 (2.15% as a decimal), which equals $4,300. If the borrower rolls the fee into the loan amount, the total loan would equal $204,300.

    How Lenders Determine Your Funding Fee Status and Amount

    To get a VA loan, lenders must obtain the borrower’s certificate of eligibility (COE). The COE confirms the borrower meets the VA loan’s servicer requirements and conveys your funding fee status. Veterans exempt from paying the VA funding fee will have “Exempt” next to the funding fee status on their COE. Conversely, those who must pay the VA funding fee will have “Non-Exempt” listed.

    The COE also lists prior loans, which helps the lender determine previous loan usage and the correct VA funding fee percentage.

    Pending VA Disability Claims

    This last section looks at borrowers awaiting a VA disability determination. A disability determination shouldn’t stop a borrower from getting a VA loan since VA borrowers can get a VA funding fee refund after receiving a decision that changes their status.

    Getting a VA funding fee refunded is fairly simple but can take time. To get a refund, contact your original VA lender or loan services, or you can also contact your VA Regional Loan Center. Refunds typically take 10 business days to receive after approval.

    Written by Team