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The VA funding fee is a governmental fee required for many VA borrowers. However, some Veterans are exempt, and the fee varies by VA loan usage and other factors. Here we explore the ins and outs of the VA funding fee, current charts, who’s exempt and a handful of unique scenarios.
VA loans offer eligible Veterans and military spouses unique benefits to help them achieve homeownership. From $0 down and no PMI to consistently lower than average interest rates, the VA loan is often one of the best choices on the market today.
To keep this program running for future generations of Veteran homebuyers, the Department of Veterans Affairs requires most borrowers to pay the VA funding fee.
What is the VA Funding Fee?
The VA funding fee is a one-time fee paid to the Department of Veterans Affairs. While most Veterans pay 2.15%, this fee ranges from 0.5% to 3.3%, depending on the loan type, if you’ve used a VA loan before or if you have a down payment greater than 5%.
Want to estimate your VA funding fee? Use this simple VA funding fee calculator.
VA Funding Fee for Purchase Loans
As you’ll see in the VA funding fee table for 2023 below, Veterans purchasing with a VA loan for the first time receive a lower fee than subsequent users. Though not required, first-time and subsequent purchasers can decrease the funding fee with a minimum 5% down payment.
The following table shows the current VA funding fee rates on purchase loans for Veterans, active military, Reserves and National Guard members.
2023 VA Funding Fee Chart
| Down Payment | First-Time VA Loan Use | Subsequent VA Loan Use |
|---|---|---|
| No Down Payment | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
VA Funding Fee for Refinance Loans
2023 VA Funding Fee Chart for Cash-Out Refinance Loans
| First Use | After First Use |
|---|---|
| 2.15% | 3.30% |
Source: Veterans United
