VA Funding Fees
What is the VA funding fee?
The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance.
Will I have to pay the VA funding fee?
If you’re using a VA home loan to buy, build, improve, or repair a home or to refinance a mortgage, you’ll need to pay the VA funding fee unless you meet certain requirements.
Must pay a VA Funding Fee for either first time use or subsequent use (can be financed into the loan).
Funding Fees:
First-Time Use - 0% Down:
2.15%
Subsequent Use - 0% Down: 3.30%
5% – 9.99% Down Payment:
1.50%
10% or More Down Payment:
1.25%
VA Disability Exempt:
0.00%
Cash-Out Refinance - First-time:
2.15%
Cash-Out Refinance - Subsequent:
3.30%
IRRRL (Interest Rate Reduction Refinance Loan):
0.50%
Note:
There are no additional monthly mortgage premiums or fees.
Exemptions: Veterans with service-connected disabilities, those eligible for compensation, and certain surviving spouses are exempt.
Payment Options: The fee can be paid in cash at closing or rolled into the loan amount.
Lender Fees: Lenders are capped at charging a maximum of 1% in fees.
