The VA funding fee is the mechanism that keeps the VA home loan program self-funding for taxpayers, and it's the reason VA loans need no monthly mortgage insurance. It's a one-time percentage of the loan amount, financeable into the loan or paid in cash at closing.
Purchase and construction loans
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Refinance loans
- IRRRL (Interest Rate Reduction Refinance Loan): 0.50%, every time, regardless of first or subsequent use.
- Cash-out refinance: 2.15% first use, 3.30% subsequent use.
- Native American Direct Loan (NADL): 1.25% for a purchase, 0.50% for an IRRRL.
- Loan assumption: 0.50%, paid by the assuming buyer.
Get your VA Pre-Approval Summary.
Complete the short form and we send back a full VA breakdown: your entitlement, the VA funding fee, and an estimated $0-down monthly payment — with no mortgage insurance, ever.
- Your entitlement and county loan limit (if applicable)
- $0 down payment — no mortgage insurance, ever
- One-time VA funding fee, financeable into the loan
- Estimated monthly payment with taxes and insurance
Summary emailed and shown on screen · Not an approval or commitment to lend
Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, VA guidelines, and final lender approval. Not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs. Equal Housing Opportunity.
- Purchase price
- $385,000
- Down payment
- $0
- Base loan amount
- $385,000
- Financed funding fee (2.15%)
- $8,278
- Est. monthly payment
- $2,690
Sample figures · Simply Approved Mortgages · NMLS #2620881 · Equal Housing Opportunity
Who pays $0
The funding fee is waived entirely for:
- Veterans receiving VA compensation for a service-connected disability
- Veterans who would be entitled to compensation but are receiving retirement or active-duty pay instead
- Veterans rated eligible for compensation based on a pre-discharge exam or review
- Active-duty service members who have been awarded the Purple Heart
- Surviving spouses of veterans who died in service, died from a service-connected disability, or are receiving Dependency and Indemnity Compensation (DIC)
Your Certificate of Eligibility (COE) states your exemption status. If a disability rating is approved after you've already closed and paid the fee, you can request a refund.
How it's paid
Most veterans finance the funding fee into the loan balance rather than paying it in cash — on a $400,000 loan at the 2.15% first-use rate, that's $8,600 added to the loan rather than due at the closing table. Financing it slightly raises the loan-to-value and the payment, but keeps more cash available for moving and reserves.
The funding fee is separate from, and in addition to, ordinary closing costs like the appraisal, title work, and recording fees.
VA home purchase calculator: run your own numbers
Edit the fields to see your down payment, financed one-time VA funding fee, and full monthly payment. VA loans allow $0 down and carry no monthly mortgage insurance.
Estimates only. Nothing here is an application, pre-qualification, pre-approval, rate quote, rate lock or commitment to lend. You can keep using this tool without giving us anything.
Estimates only — not a loan offer, rate lock, or commitment to lend. Taxes, insurance, and rates vary by county and credit profile.
