VA hub
The funding fee
A one-time cost that helps keep the VA loan program running.
What it is
Most VA borrowers pay a one-time funding fee, a percentage of the loan. It is paid at closing, and it can often be added to the loan instead.
What changes it
The amount depends on the kind of service, whether this is your first use of the benefit, the loan type and how much you put down. A larger down payment can lower it.
Who may be exempt
Some people may not owe the fee, such as veterans who receive VA compensation for a service-connected disability and some surviving spouses. The VA decides, and the COE or a letter from the VA shows it. Ask a lender how it will show on your Loan Estimate.
Where to look
The VA publishes the percentages on its own site. Because they change, this page does not print them until a person has checked them against that page.
What this rests on
Amounts and limits change and differ by lender and by county. Ask a lender, and read the official page. Read the official page.
More VA topics
- How a VA loan worksA regular loan from a regular lender, with a government guarantee behind it.
- Who may be eligibleThe VA decides, and it looks at service, not at a person's background.
- The Certificate of Eligibility (COE): a walk-throughThe COE is the VA's proof that you may use the home loan benefit. Most lenders ask for it. Here is how to get one.
- Down payment and entitlementTwo words that come up in every VA loan conversation.
- The VA appraisal and the homeThe VA looks at the house as well as the buyer.
Educational only. AskResi is not a lender.