VA Funding Fee
What does the VA funding fee cost you?
Finance the funding fee?
Most VA borrowers finance the fee. You pay interest on it but preserve cash.
Funding fee total
$9,675(2.15% of $450,000)
Your funding fee is $9,675 (2.15%). Compare this to conventional with 5% down: PMI of ~$249/mo for about 11.3 years (until the balance amortizes to 78% of the price at a 6.5% rate, when PMI must end automatically). That’s $33,666 of PMI you’d pay on a comparable conventional loan. The VA fee is paid once (financed or upfront); PMI keeps charging.
VA loan amount
$450,000
$450,000 − $0 down (0.0%)
Funding fee rate
2.15%
Purchase, <5% down, 1st use
Funding fee amount
$9,675
rolled into loan
Total loan (with fee)
$459,675
fee financed
Cash to close
$0
plus standard closing costs
2026 VA funding fee table (effective Apr 2023)
| Loan type | 1st use | Subsequent use |
|---|---|---|
| Purchase, <5% down | 2.15% | 3.30% |
| Purchase, 5-9% down | 1.50% | 1.50% |
| Purchase, 10%+ down | 1.25% | 1.25% |
| Cash-out refi | 2.15% | 3.30% |
| IRRRL (streamline) | 0.50% | 0.50% |
Funding fee exemptions (no fee at all):
- Veterans receiving (or entitled to receive) VA compensation for a service-connected disability, including those rated eligible before discharge (a 0% rating with no compensation does not qualify)
- Surviving spouse of a veteran who died in service or from a service-connected disability, receiving DIC
- Active duty member who has received a Purple Heart
Reserve / National Guard borrowers: rates were equalized with regular military effective January 1, 2020 (Blue Water Navy Vietnam Veterans Act of 2019). The 0.25% surcharge no longer applies.
See full VA loan guide for entitlement, IRRRL eligibility, assumability, and Minimum Property Requirements.