VA loan path: step 4 of 6, Funding fee← Funding fee exemptionNext: The home buying process →
The VA funding fee is a one-time charge you pay when you close a VA-backed or VA direct home loan. VA figures it as a percent of your loan amount. Your loan type, your down payment and any past VA loan set that percent. If you receive VA disability compensation, you pay no fee at all. Use the calculator below to estimate yours, then read how VA applies each rule.
VA funding fee calculator
Pick your loan type and answer a few questions. The calculator uses VA's current rate chart.
- Funding fee rate
- Estimated funding fee
Estimate for education only, not a Loan Estimate or offer of credit. Your actual funding fee depends on your final loan amount and your verified VA eligibility and exemption status.
| Loan type and use | Fee |
|---|---|
| Purchase or construction, first use, less than 5% down | 2.15% |
| Purchase or construction, first use, 5% to under 10% down | 1.5% |
| Purchase or construction, first use, 10% down or more | 1.25% |
| Purchase or construction, after first use, less than 5% down | 3.3% |
| Purchase or construction, after first use, 5% to under 10% down | 1.5% |
| Purchase or construction, after first use, 10% down or more | 1.25% |
| Cash-out refinance, first use | 2.15% |
| Cash-out refinance, after first use | 3.3% |
| Interest rate reduction refinance (IRRRL) | 0.5% |
| Manufactured home loan (not permanently affixed) | 1% |
| Loan assumption | 0.5% |
| Native American Direct Loan, purchase | 1.25% |
| Native American Direct Loan, refinance | 0.5% |
| Vendee loan (buying a VA-acquired property) | 2.25% |
Source: VA funding fee and loan closing costs, VA.gov. Figures checked on October 21, 2026.
Why VA charges a funding fee
VA home loans need no down payment and no monthly mortgage insurance. VA charges the funding fee to lower what the program costs U.S. taxpayers. You pay it once, when your loan closes.
How VA figures your fee
VA multiplies your loan amount by a rate from its fee chart. Three things pick the rate: your loan type, whether you have used a VA loan before, and on a purchase, your down payment. VA uses the amount you borrow, not the price of the home.
VA gives this example. A first-time user buys a $200,000 home with $10,000 down. That down payment equals 5%, so the rate is 1.5%. The loan comes to $190,000, and the fee comes to $2,850.
A bigger down payment cuts the fee two ways. You borrow less, and the rate drops at 5% down and again at 10% down. Once you put at least 5% down on a purchase, first-time and repeat users pay the same rate.
Who does not pay the funding fee
You owe no funding fee if any of these describe you:
• You receive VA compensation for a service-connected disability.
• You qualify for that compensation but receive retirement or active-duty pay instead.
• You receive Dependency and Indemnity Compensation (DIC) as the surviving spouse of a Veteran.
• You are a service member with a proposed or memorandum rating, dated before closing, that says you can get compensation from a pre-discharge claim.
• You serve on active duty and show proof of a Purple Heart on or before your closing date.
Our VA funding fee exemption guide covers each exemption in more detail.
Can you roll the funding fee into your loan?
Yes. You can add the funding fee to your loan amount and pay it off over time, or pay it in full at closing. On a purchase or construction loan, the funding fee is the only cost you can add to the loan. You pay all other fees and charges at closing.
The seller can also pay it. VA counts a seller credit for the funding fee as a seller concession and caps concessions at 4% of the home's reasonable value. Our VA closing costs guide explains who pays what.
Funding fee refunds
If VA later awards you compensation for a service-connected disability with an effective date before your closing, you may get the fee back. A proposed or memorandum rating issued after closing does not count, and you still owe the fee. Call your VA regional loan center to ask about a refund.
Key points
• A first-use purchase with less than 5% down costs 2.15% of the loan amount. After first use, it costs 3.3%.
• 5% down drops the purchase rate to 1.5%. 10% down drops it to 1.25%.
• An IRRRL or a loan assumption costs 0.5%.
• VA disability compensation, DIC for a surviving spouse, or an active-duty Purple Heart each remove the fee.
• You can finance the fee into the loan.
Questions, answered
How much is the VA funding fee?
On a first-use purchase loan, VA charges 2.15% of the loan amount with less than 5% down, 1.5% with 5% to under 10% down, and 1.25% with 10% or more down. After first use, the fee with less than 5% down rises to 3.3%. A cash-out refinance costs 2.15% on first use and 3.3% after. An IRRRL or loan assumption costs 0.5%, and a manufactured home loan not permanently affixed costs 1%. These rates took effect April 7, 2023.
Who does not have to pay the VA funding fee?
You skip the fee if you receive VA compensation for a service-connected disability, if you qualify for that compensation but receive retirement or active-duty pay instead, or if you receive Dependency and Indemnity Compensation as a Veteran's surviving spouse. Service members with a proposed or memorandum rating dated before closing that says they can get compensation from a pre-discharge claim also skip it. So do active-duty members who show proof of a Purple Heart on or before closing.
Can I roll the VA funding fee into my loan?
Yes. You can add the funding fee to your loan amount and pay it off over time, or pay it in full at closing. On a purchase or construction loan, the funding fee is the only cost you can add to the loan. You pay all other fees and charges at closing.
Does VA base the funding fee on the home price or the loan amount?
VA bases the fee on the loan amount. VA's own example: a first-time user buys a $200,000 home with $10,000 down, borrows $190,000, and pays a 1.5% fee of $2,850.
Can I get a VA funding fee refund?
You may qualify for a refund if VA later awards you compensation for a service-connected disability with an effective date before your loan closed. A proposed or memorandum rating issued after closing does not earn a refund. Call your VA regional loan center to ask.
More VA loan guides
VA home loans · VA funding fee exemption · VA loan tools · VA closing costs · VA entitlement · VA IRRRL · VA cash-out refinance · VA loan assumption · VA loans for surviving spouses
Talk a VA loan through with FLO Mortgage
Call our Flagler Beach team at (386) 882-9980 to go over your VA eligibility, your funding fee and your closing costs. Loans are subject to credit approval and program guidelines.
Disclosure: This page is general information only and is not a commitment to lend or financial advice. The calculator gives an estimate for education only, not a Loan Estimate or offer of credit. All loans are subject to credit approval and program guidelines. FLO Mortgage is licensed as a mortgage lender in Florida (MLD2621) and Georgia (#1835856), Company NMLS #1835856; Broker Owner Joy McCoy Flores, NMLS #1096400. Equal Housing Opportunity. 212 Moody Blvd, Flagler Beach, FL 32136. (386) 882-9980. FLO Mortgage is not affiliated with or endorsed by the U.S. Department of Veterans Affairs.