Residential · Calculator
VA Funding Fee
Funding fee percentage and dollar amount by transaction type, LTV bracket, and prior-use status. Current April 2023+ VA rates with the service-connected-disability waiver.
Loan Type
Bracket: 95.01%–100%. Higher LTV = higher fee tier on purchases.
Eligibility Status
Funding Fee
$8,600.00
2.150% of $400,000
Match Detail
How the funding fee works: A one-time payment to the VA at closing. Funds the VA loan program (in lieu of the monthly mortgage insurance conventional and FHA loans charge). The fee is typically financed into the loan balance — borrowers do not bring it to closing as cash. Veterans with any service-connected disability rating (1% or higher), surviving spouses of service members who died in service or from a service-connected disability, and Purple Heart recipients are fully exempt.
Frequently asked
About this calculator.
What is the VA funding fee?
A one-time fee paid at closing on every VA loan, calculated as a percentage of the loan amount. The fee funds the VA loan program (in lieu of the monthly mortgage insurance that conventional and FHA loans charge). It is typically financed into the loan balance, so the borrower does not bring it as cash to closing. The exact percentage depends on loan type, down payment / LTV, and whether this is the borrower's first VA loan.
What are the current VA funding fee rates (2026)?
For loans closing on or after April 7, 2023: Purchase or construction with 0% down (95.01%–100% LTV) — 2.15% first use, 3.30% subsequent use. Purchase with 5%–10% down (90.01%–95% LTV) — 1.50% flat. Purchase with 10%+ down (≤90% LTV) — 1.25% flat. Cash-out refinance — same as 100% LTV purchase tiers (2.15% / 3.30%). IRRRL streamline — 0.50% flat. Loan assumption — 0.50% flat.
Who is exempt from the VA funding fee?
Veterans with any service-connected disability rating (1% or higher) confirmed by the VA. Surviving spouses of service members who died in service or from a service-connected disability. Purple Heart recipients (under PL 116-23, effective January 2020). Active-duty service members who have received a Purple Heart. The exemption is documented on the Certificate of Eligibility (COE) — pull yours at va.gov or have your loan officer pull it.
Is the funding fee paid in cash at closing?
Almost never. The fee is financed into the loan balance — added to the base loan amount so the borrower does not bring it as cash. On a $400K purchase with a 2.15% first-use funding fee, the borrower's actual loan is $408,600 ($400K base + $8,600 funding fee). Some borrowers choose to pay the fee in cash to keep the loan amount lower; that is allowed but not common.
Why is the subsequent-use funding fee higher than first-use?
Statutory — the higher rate is set by Congress (38 U.S.C. § 3729) to reflect the additional risk of repeat VA loan usage. It applies only to zero-down purchases and cash-out refinances. Borrowers who put 5%+ down on a subsequent-use purchase pay the same 1.50% / 1.25% rates as first-time users — the subsequent-use penalty disappears with any down payment.
Does the funding fee count toward LTV?
No — VA calculates LTV based on the base loan amount (excluding financed funding fee). The funding fee is layered on top after LTV is determined. This is why a "100% LTV" VA loan often shows up at 102.15% of purchase price on the closing disclosure — the financed funding fee is the difference.
Funding fee waivers happen often
Pull your COE — we'll confirm the rate.
Service-connected disability ratings flow through to the COE. If yours is on file but the lender's quote shows a funding fee, push back — and call us. The waiver is the single biggest dollar item on most VA closings.
Prefer to talk first? Call (707) 583-3666