One-time fee. No monthly mortgage insurance.
The VA funding fee is a one-time charge that helps support the VA home loan program. One of the major benefits of the program is that it generally does not require a down payment and does not require monthly mortgage insurance.
Not every Veteran pays the funding fee. Certain Veterans, service members, and surviving spouses are exempt.
The percentage applies to the loan amount.
The funding fee is calculated as a percentage of your VA loan amount before the funding fee itself is added. It is not calculated on the purchase price when you are making a down payment.
Pay it at closing or finance it.
VA allows the funding fee to be paid in full at closing or financed into the VA loan. On a purchase loan, the funding fee is the closing cost VA specifically allows to be financed into the loan amount.
Your down payment and prior VA use can change the fee.
These are VA's current published purchase/construction funding-fee rates, effective April 7, 2023.
Less than 5% down
This is where first-use versus subsequent-use status makes the biggest difference.
5% or more down
The rate is 1.50% for both first and subsequent use when the down payment is at least 5% but less than 10%.
10% or more down
The rate drops to 1.25% for both first and subsequent use when the down payment is at least 10%.
You may not have to pay it at all.
Service-connected disability compensation
You are receiving VA compensation for a service-connected disability.
Eligible for compensation but receiving other pay
You are eligible for VA disability compensation but receive retirement or active-duty pay instead.
Surviving spouse receiving DIC
You are receiving Dependency and Indemnity Compensation as the surviving spouse of a Veteran.
Pre-discharge disability rating
You received a qualifying proposed or memorandum rating before closing showing eligibility for compensation based on a pre-discharge claim.
Active-duty Purple Heart recipient
You are still serving on active duty and provide evidence on or before closing that you received a Purple Heart.
Not sure?
Your COE and lender can help verify your official funding-fee status before closing. Don't assume you are required to pay it.
Estimate your VA funding fee.
For a VA purchase loan, enter the purchase price, down payment, whether this is your first or subsequent use, and whether you believe you are exempt.
Your loan scenario
This calculator is for a standard VA purchase loan.
Your estimate will appear here.
Enter your purchase scenario to see the applicable rate, estimated fee, and estimated financed loan amount.
How we calculated it
Different VA transactions can use different rates.
Finance the funding fee
The fee can generally be added to the VA loan amount and paid over time. That increases the amount being financed and the interest paid over the life of the loan.
Pay it at closing
You can also pay the funding fee in full at closing instead of financing it. In some transactions, a seller or builder may also pay the funding fee as a permitted seller concession.
We can verify your funding-fee status before you write an offer.
Your COE and VA eligibility information help determine whether the funding fee applies. If something doesn't look right, don't guess.
Educational estimate: Current funding-fee rates and exemption descriptions are based on U.S. Department of Veterans Affairs guidance. Your COE, VA funding-fee status, final loan amount, transaction type, and lender's closing documents determine the actual fee. This calculator is not a Loan Estimate or commitment to lend.