VA Funding Fee: How Much Is It In 2020? | Charts and Info

Tim Lucas Military VA Loan editor

Posted on: April 30, 2020

VA home loans require an upfront, one-time payment called the VA funding fee.

The fee is determined by the loan amount and your service history. VA home loan applicants can pay all (or part) of the fee in cash, or wrap it into the loan amount to reduce out-of-pocket expenses. The VA funding fee allows the VA home loan program to be self-sustaining and makes homes affordable for veterans and service members.

Use the charts below as a guide to what you can expect to pay.

Click here to check today's low VA loan rates and see if you are eligible.

First-Time Use Purchase & Construction Loans

Down Payment	Veteran/Active Duty	Reservist/Nat. Guard	Eligibility
Less than 5%*	2.3%	2.3%	Check Eligibility
5% to 9.99%	1.65%	1.65%	Check Eligibility
10% or more	1.4%	1.4%	Check Eligibility

*Including cash-out refinance loans

Second Time Use Purchase & Construction Loans

Down Payment	Veterans/Active Duty	Reservist/Nat. Guard	Eligibility
Less than 5%	3.6%	3.6%	Check Eligibility
5% to 9.99%	1.65%	1.65%	Check Eligibility
10% or more	1.4%	1.4%	Check Eligibility

*Including cash-out refinance loans

Click here to check your VA home loan eligibility.

Streamline Refinance / IRRRL (Interest Rate Reduction Refinance Loan)

Type of Loan	Veteran/Active Duty	Reservist/Nat. Guard	Eligibility
First-time Use	0.50%	0.50%	Check Eligibility
Second-time Use	0.50%	0.50%	Check Eligibility

Request a free VA loan rate quote here.

Other Types of VA Loans

Type of Loan	Veteran/Active Duty	Reservist/Nat. Guard	Eligibility
Assumption	0.50%	0.50%	Check Eligibility
Manufactured Home	1.00%	1.00%	Check Eligibility

How much are VA Funding Fees?

Funding fees vary widely, from zero to 3.6% of the loan amount, depending on the veteran’s service and type of loan. The charts above show funding fee amounts from the VA Handbook for some of the major categories.

The funding fee is impacted by whether the borrower is on active duty, a veteran of the regular military, Reserves or National Guard. Length of service and the “era” during which a veteran served will also affect the funding fee. Some veterans are even exempt from the funding fee if they have a service-connected disability as determined by VA.

Subsequent Use

If the veteran has used their VA benefit before, then they can expect to pay a slightly higher funding fee. VA funding fee will be slightly higher. Click here to request your VA loan rate and approval.

Click here to request your VA loan rate and approval.

Why Charge the VA Funding Fe?

The funding fee sustains the VA home lending program and ensures other veterans can receive the same benefit in the future.

The VA home loan program is self-sustaining and does not use taxpayer dollars or use funds from other VA benefit programs. Thanks to the funding fee, VA home loans are an affordable and long-term home buying option for veterans and service members.

The relatively small funding fees are certainly offset by the home loan cost savings veterans and service members enjoy.

Check today's VA loan rates. Click here.