{"id":2332,"date":"2022-03-21T08:00:12","date_gmt":"2022-03-21T13:00:12","guid":{"rendered":"https:\/\/blog.veteransloans.com\/?p=2332"},"modified":"2025-12-19T09:46:15","modified_gmt":"2025-12-19T15:46:15","slug":"how-much-is-the-va-loan-funding-fee","status":"publish","type":"post","link":"https:\/\/www.veteransloans.com\/resources\/how-much-is-the-va-loan-funding-fee\/","title":{"rendered":"How Much is the VA Loan Funding Fee?"},"content":{"rendered":"[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” background_color=”RGBA(0,0,0,0)” background_image=”http:\/\/173.255.228.252\/resources\/wp-content\/uploads\/2022\/02\/Background-How-Much-is-the-VA-Funding-Fee-1-scaled.jpg” custom_margin=”0px|0px|0px|0px|false|false” custom_padding=”0px|0px|0px|0px|false|false” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”default” background_color=”#FFFFFF” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_title _builder_version=”4.16″ _module_preset=”default” title_font=”|700||on|||||” title_text_align=”center” title_font_size=”36px” meta_font=”|||on|||||” meta_text_align=”center” meta_font_size=”20px” background_color=”#FFFFFF” min_height=”250px” height=”100%” custom_padding=”100px|15px|100px|15px|false|false” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text ul_item_indent=”65px” _builder_version=”4.27.4″ text_font_size=”18px” header_2_text_color=”#006276″ header_2_font_size=”28px” header_2_line_height=”1.5em” header_3_text_color=”#0072ac” header_3_font_size=”24px” header_3_line_height=”1.2em” header_4_text_color=”#00967a” header_4_font_size=”20px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]\n

The VA funding fee is a one-time payment that can be paid upfront by the borrower upon purchasing their home with a VA-backed loan<\/a>. This fee can also be rolled into the mortgage. This funding fee applies to both VA home purchases and VA refinances.<\/p>\n

This funding fee goes directly to the Department of Veterans Affairs<\/a> and is not collected by the mortgage lender. The funding fee helps support the costs of the VA guaranty.<\/p>\n

How Much is the VA Funding Fee?<\/h2>\n

The amount of the funding fee depends on whether you make a down payment or not and whether you have had a VA-backed loan before.<\/p>\n

First Use<\/h3>\n

If this is your first time using your VA loan benefit, the funding fee is 2.15% of the loan amount with a down payment less than 5%, 1.5% of the loan amount with a down payment of 5% to 9.9%, and 1.25% of the loan amount with a down payment of 10% or more.<\/p>\n

Subsequent Use<\/h3>\n

If this is your second or subsequent use of the VA loan benefit, the funding fee is 3.3% for loans with less than a 5% down payment, 1.5% for a loan with a down payment of 5% or more, and 1.5% for a loan with a down payment of 10% or more.<\/p>\n

For a Streamline Refinance or Interest Rate Reduction Refinance Loan (a VA IRRRL loan) the funding fee is 0.5% of the mortgage across the board, whether it is your first or second time securing an IRRRL loan. The funding fee for VA-backed cash-out refinancing loans is 2.15% for the first use and 3.3% subsequently.<\/p>\n

How the VA Funding Fee is Calculated<\/h2>\n

Suppose you are getting a VA loan for the first time and you are purchasing a home for $300,000 and paying a down payment of $15,000 (5% of the $300,000 loan). You will pay a VA funding fee of $4,275.00 (285,000 * 0.015), which is\u00a01.5%\u00a0of the $285,000 loan amount.<\/p>\n

Note: The funding fee does not apply to the purchase price of the home, only to the VA loan amount.<\/p>\n

Who Pays the VA Funding Fee?<\/h2>\n

Anyone securing a VA-backed home loan to purchase, construct, renovate, or repair their home or to refinance a mortgage, is required to pay the funding fee.<\/p>\n

Who is Exempt From Paying the VA Funding Fee?<\/h2>\n

Anyone who meets the following criteria is exempt from paying the funding fee:<\/p>\n