See your VA funding fee, what it adds to your loan and how a larger down payment or an exemption changes it.
Subsequent use means you have used your VA loan benefit before, even if the loan is paid off.
VA loans do not require a down payment. Putting 5% or 10% down lowers the fee.
The rate is a sample for illustration. Use a rate you have been quoted.
VA funding fee
$0
Principal and interest only. Taxes, homeowners insurance and HOA are not included. Funding fee rates are set by the VA and can change. Confirm the fee for your loan with your loan officer.
The funding fee is a one-time charge on VA loans that helps keep the program running. These are the standard rates for loans closed after April 7, 2023.
| Loan | First use | Used before |
|---|---|---|
| Purchase, under 5% down | 2.15% | 3.30% |
| Purchase, 5% to 9.99% down | 1.50% | 1.50% |
| Purchase, 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.30% |
| IRRRL (streamline) | 0.50% | 0.50% |
Yes. Most borrowers add it to the loan, which raises the loan amount and the payment slightly. Paying it at closing keeps the loan smaller.
No. VA loans have no monthly mortgage insurance. The funding fee is a one-time charge, and exempt borrowers do not pay it.
On a purchase, yes. At 5% down the rate drops, and at 10% down it drops again. The calculator shows how much more down payment it takes and what it saves.
If you have used the benefit before, a purchase or cash-out refinance with less than 5% down carries the higher subsequent-use rate. The reduced rates at 5% and 10% down are the same for first and later use.
Seller concessions can often cover the funding fee. VA limits seller concessions, so confirm what counts toward the limit with your loan officer.
Duane Buziak, NMLS #1110647. Licensed in VA, TN and GA. Brokered through Coast2Coast Mortgage, NMLS #376205. For illustration only. Not a loan offer, commitment or rate quote. Equal Housing Opportunity.