2018 VA Funding Fee Explained [Chart]


BY The Lenders Network

2 minute read

VA loans are one of the greatest benefits of being a Veteran.

No down payment or mortgage insurance is needed.

If you’re shopping for one of these mortgages you have probably heard of the VA funding fee.

But, what exactly is the funding fee? How much is it?

We will explain the purpose of the VA funding fee and look into the costs.

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What is a VA funding fee?

A VA funding fee is a charge to help the VA loan program self sustainable. Because VA loans do not require a down payment or mortgage insurance like other types of mortgages they need money to operate. The funding fee puts money into the program to keep it running.

The VA funding fee is 2.15% when your use a zero down payment and is usually rolled into the loan.

For example: If you have a $200,000 VA loan and you put zero down the VA funding fee will be 2.15%, or $4,300.

VA Funding Fee Chart 2017

The following VA funding fee chart has been updated for 2017 and is current as of June 11th, 2017. Regular military members pay slightly lower Funding Fees than Reservists and National Guard members.

The amount of the VA funding fee is determined by the type of military personal, down payment, and how many VA loans have been used. Please consult the chart below.

Regular Military: 

Regular Military
Down payment Fee (first use) Fee (each additional use)
0% 2.15 percent 3.3 percent
5-10% 1.5 percent 1.5 percent
10%+ 1.25 percent 1.25 percent

National Guards and Reserves:

Reserve & National Guard Personnel
Down payment Fee (first use) Fee (each additional use)
0% 2.4 percent 3.3 percent
5-10% 1.75 percent 1.75 percent
10%+ 1.5 percent 1.5 percent

VA Cash-Out Refinance Funding Fee Chart

The VA funding fee for IRRL’s (VA cash-out refinance) manufactured home loans and loan assumptions is the same for all military personal weather regular military, national guards, or reserves for the first time and each additional use.

All Military Personal, National Guard, and Reserves
Loan type Funding Fee Fee (each additional use)
IRRL’s 0.50 percent 0.50 percent
Manufactured Home Loans 1.00 percent 1.00 percent
Loan Assumptions 0.50 percent 0.50 percent

VA Funding Fee Exemption

Some Veterans are exempt from having to pay the funding fee. This is mainly veterans receiving compensation for disabilities and service related medical conditions. Spouses of Veterans who were killed in the line of duty are also exempt. In order to be exempt you will need to complete VA form 26-8937

VA Funding Fee is Tax Deductible

Since the funding fee is a form of mortgage insurance it is fully tax deductible. The funding fee is entered as a part of the 1098 mortgage insurance statement. VA origination fees can also be tax deductible is they are charged in points.

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