VA Mortgage Funding Fee

What is the VA Mortgage Funding Fee?

(Updated 3/13/2023: new lower funding fees, site updated)

The VA Mortgage funding fee is a one-time fee paid to the Department of Veterans Affairs by eligible veterans using their VA Home Loan benefit.

The fee helps offset the costs of administering the loan, and borrowers can finance it into their total loan amount.

Depending on individual circumstances, veterans may be exempt from paying the fee. For all other qualified buyers, the fee is a percentage of the loan amount and varies depending on the type of VA Loan.

First Time Home Buyers

First-time VA home buyers who make a down payment of <5% down pay 2.15% x the loan amount for the VA Funding Fee.

First-time VA home buyers who make a down payment of 5% or more (but less than 10%) pay 1.50% x the loan amount for the VA Funding Fee.

First-time VA home buyers who make a down payment of 10% or more pay 1.25% x the loan amount for the VA Funding Fee.

Subsequent Use Funding Fee For a VA Mortgage

The VA Funding fee for the subsequent use of a VA loan is 3.3% x the loan amount if the down payment is less than 5%.

The VA Funding fee for the subsequent use of a VA loan is 1.50% x the loan amount if the down payment is 5% or more (but less than 10%).

The VA Funding fee for the subsequent use of a VA loan is 1.25% x the loan amount if the down payment is 10% or more.

Reduced VA Funding Fee

The VA funding fee can be reduced for certain disabled veterans, veterans remarrying after a spouse’s death, and surviving spouses. The VA funding fee is an essential benefit for veteran homebuyers, as it helps offset the costs of administering the loan. It also ensures that the VA Home Loan program remains financially sound and available to serve future generations of veterans.

Waiver of the VA Funding Fee

Waiver of the VA funding fee may be applicable in certain circumstances. The waiver of the VA funding fee can result in the total or partial reduction of the VA funding fee for eligible borrowers. The waiver applies to veterans who have previously used their VA Home Loan benefit, are disabled, receiving compensation from the Department of Veterans Affairs, or are considered low-income according to the VA’s income thresholds.

The funding fee is an integral part of the VA Home Loan program. It helps ensure that the program remains financially sound so eligible veterans can access this valuable benefit in the future.

Contact Steve Silver at Silver Mortgage, 1-800-920-5720, for more information about VA Mortgages.

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