VA Funding Fees


What is the VA funding fee?

It depends on the transaction:
On a VA Streamline Refinance the VA Funding Fee is .5%. On a purchase transaction the Fee is 2.15%, and on a VA Cash Out Refinance the fee is 3.3%.

VA Funding Fee Charts

  • The VA Funding Fee is a one-time, up-front charge applied as a percentage to the “Base VA Loan Amount”.
  • The fee may be paid in cash or financed, or a combination of the two, provided the entire va loan amount including any financed fee does not exceed $417,000.
  • The fee is fully earned by VA upon loan closing and is not available as a pro-rated refund to the veteran, even if the veteran refinances to another VA loan at a later date.
  • Veterans who are not exempt from the funding fee must be charged the appropriate funding fee based on the tables below according to the type of loan.
  • VA Form 26-8937, Verification of VA Benefits is required for any veteran who is exempt from the funding fee.

VA Funding Fee Chart:Purchase and Construction Loans

Type of Veteran Down Payment Percentage for First Time Use Percentage for Subsequent Use
Regular Military 0% – 4.99%
5% – 9.99%
10% or more
3.30% †
Reserves/National Guard 0% – 4.99%
5% – 9.99%
10% or more
3.30% †

VA Funding Fee Chart: Regular Refinance (Rate/Term or Cash-Out) Loans ‡

‡ All VA refinance loans are considered “cash-out” except IRRRLs and loans to payoff (1) construction loans, (2) installment land contracts, and (3) loans assumed by veterans at interest rates higher than the proposed refinance. All other VA refinance loans are considered “cash-out” whether or not the veteran actually receives cash.

Type of Veteran Percentage for First Time Use Percentage for Subsequent Use
Regular Military 2.15% 3.3% †
Reserves/National Guard 2.4% 3.3% †

† The higher subsequent use fee does not apply if the veteran’s only prior use of entitlement was for a manufactured home loan.

VA Funding Fee Chart: IRRRL’S

Type of Loan Percentage for Either Type of Veteran Whether First Time of Subsequent Use
Interest Rate Reduction Refinancing 0.50%

Do I Have To Pay The Funding Fee?

Yes. In order to get the Military VA Streamline Loan you must pay the required funding fee.

Most Veterans know that a funding fee applies when getting a VA loan with the Department of Veterans Affairs. VA loans are backed by the federal government once they have been approve by a qualified lender and subject like any loan to change with the fed raising or lowering it’s rate. Fees are standard with any loan and the VA has the lowest rates of any loan product available today. Shopping around will get the best rate possible. It is a good idea to contact us with any questions you have about the fee. If you qualify the rest is easy.

The History Of Funding Fees

Since there is no particular 2098 tax, the funding fee was implemented to offset the cost of writing such a low interest loan. That is to your benefit. As a Veteran Of the US Military, you have the right to have the fee explained in writing to you.


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