VA Funding Fee Chart



If you’re shopping for a VA loan you have probably heard of the VA funding fee.

But, what is a 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 you 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

Regular military members pay slightly lower Funding Fees than Reservists and National Guard members.

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

Regular Military

Down payment

Fee (first-time buyer)

Fee (subsequent use)

0%

2.15%

3.3%

5-10%

1.50%

1.50%

10% +

1.25%

1.25%

National Guards and Reserves

Down payment

Fee (first-time buyer)

Fee (subsequent use)

0%

2.4%

3.3%

5-10%

1.75%

1.75%

10% +

1.50%

1.50%

VA Cash-Out Refinance Funding Fee Chart

The 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 for each additional use.

Loan type

Fee (first-time buyer)

Fee (subsequent use)

IRRL's

.50%

.50%

Manufactured Home Loans

1.00%

1.00%

Loan Assumptions

.50%

.50%

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. 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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