VA Funding Fee: How Much Is It In 2021? | Charts and Info

Tim Lucas Military VA Loan editor

Posted on: March 17, 2021

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 at loan closing. The VA funding fee allows the VA home loan program to be self-sustaining and makes homeownership affordable for veterans and service members.

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

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VA Funding Fee Charts

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

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VA 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

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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 military service and type of loan. The VA funding fee charts above show the 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.

Subsequent Use

Veteran homebuyers who have used their VA benefit before, then they can expect to pay a slightly higher VA funding fee.

VA Funding Fee Exemptions

Some veterans are exempt from the funding fee if they have a service-related disability as determined by VA. Surviving spouses of veterans who died during service are also eligible for a funding fee exemption.

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Why Charge the VA Funding Fe?

The funding fee allows the Department of Veterans Affairs to continue to offer other veterans the same home purchase benefits 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, the VA loan program offers an affordable and long-term home buying option for veterans and service members, without down payments or mortgage insurance.

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

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