VA Funding Fee Tables
The following VA Funding Fee Tables allow you to easily calculate the funding fee charged by the Veteran's Administration for guaranteeing your VA loan.
Purchase And Construction Loans
| Type of Veteran |
Down Payment |
First Time Use |
Subsequent Use for loans from 1/1/04 to 9/30/2011 |
| Regular Military |
None |
2.20% |
3.30% * |
| 5% or more (up to 10%) |
1.50% |
1.50% |
| 10% or more |
1.25% |
1.25% |
|
Reserves/
National Guard
|
None |
2.40% |
3.30% * |
| 5% or more (up to 10%) |
1.75% |
1.75% |
| 10% or more |
1.50% |
1.50% |
Cash-Out Refinancing Loans
| Type of Veteran |
Percentage for
First Time Use |
Percentage for Subsequent Use |
| Regular Military |
2.20% |
3.30% * |
| Reserves/National Guard |
2.40% |
3.30% * |
 * The higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan. |
Other Types Of Loans
| Type of Loan |
Percentage for Either Type of Veteran Whether First Time or Subsequent Use |
| Interest Rate Reduction Refinancing Loans |
.50% |
| Manufactured Home Loans |
1.00% |
| Loan Assumptions |
.50% |
About The VA Funding Fee
The VA funding fee is required by law. The fee is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a downpayment is slightly higher. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a downpayment. Second time users who make a downpayment of at least 5 percent pay a reduced funding fee of 1.5 percent, the same as first time users making the same downpayment. For a 10 percent downpayment, the fee drops to 1.25 percent. The effect of the funding fee on a veteran's financial situation is minimized since the fee may be financed in the loan. National Guarad and Reservist veterans pay a slightly higher funding fee percentage. To determine the exact funding fee percentage.
A basic funding fee of 2.2 - 3.3 percent must be paid to the VA by all but certain exempt veterans. A down payment of 5 percent or more will reduce the fee to 1.5 percent, and a 10 percent down payment will reduce it to 1.25 percent.
A funding fee of 2.4 - 3.3 percent must be paid by all eligible Reserve/National Guard individuals. A down payment of 5 percent or more will reduce the fee to 1.75 percent, and a 10 percent down payment will reduce it to 1.5 percent.
The funding fee for loans to refinance an existing VA home loan with a new VA home loan to lower the existing interest rate is 0.5 percent. Veterans who are using entitlement for a second or subsequent time and do not make a down payment of at least 5 percent are charged a funding fee of 2.2 - 3.3 percent.
Note: For all VA home loans, the funding fee may be paid in cash, or it may be included in the loan.
Closing Costs
Reasonable closing costs may be charged by the lender and may not be included in the loan. The VA protects veterans and regulates those closing costs that a veteran may be charged in connection with closing a VA loan. Closing costs may vary among lenders because of differing local laws and customs. The following items may be paid by the veteran purchaser, seller or shared purchaser.
- VA appraisal and compliance inspector fees (you may pay for a second appraisal if you are requesting reconsideration of value)
- VA funding fees (see above)
- Credit reports
- Loan origination fee (usually 1 percent of the loan)
- Discount points
- Title search and title insurance
- Recording fees and recording taxes, or other charges incident to recordation
- State and/or local transfer taxes, if applicable
- Survey
- Hazard insurance
- Surveys, if required by the lender or veteran
- Federal Express, Express Mail or a similar service when the saved per diem interest cost to the veteran will exceed the cost of the special handling
No commissions, brokerage fees or "buyer broker" fees may be charged to the veteran buyer.
