VA Loan Funding Fee Calculator
VA home loans are guaranteed by the Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and surviving spouses. One of the unique costs of a VA loan is the funding fee, a one-time upfront charge that helps fund the program and eliminates the need for monthly mortgage insurance. The fee percentage varies by down payment amount, whether it is your first or subsequent VA loan use, and the loan type. Veterans with service-connected disabilities may be exempt from the fee entirely.
VA funding fee rate schedule
First Use: 0% down = 2.15%, 5-9.99% = 1.50%, 10%+ = 1.25%
Subsequent Use: 0% down = 3.30%, 5-9.99% = 1.50%, 10%+ = 1.25%
Fee = Loan Amount * Rate
Total = Loan Amount + Fee (if financed)
Rates shown are for regular military purchase loans per 38 U.S.C. 3729, effective for loans closed from April 7, 2023 through September 30, 2025. Veterans receiving VA disability compensation are exempt. Check the VA website for current rates and eligibility details.
VA loan advantages over conventional financing
- No down payment required (for eligible borrowers up to the county loan limit).
- No monthly mortgage insurance, unlike FHA loans or conventional loans with under 20% down.
- Competitive interest rates backed by the VA guarantee.
- Limited closing costs; sellers can pay all VA-allowable closing costs.
- Surviving spouses of veterans killed in action or dying from service-connected disabilities may qualify.
VA funding fee: frequently asked questions
What is the VA loan funding fee?
The VA funding fee is a one-time fee paid to the Department of Veterans Affairs on VA-guaranteed home loans. It helps sustain the VA loan program so it can continue offering no-down-payment mortgages to eligible veterans and service members without requiring private mortgage insurance.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation are exempt. Surviving spouses of veterans who died in service or from a service-connected disability are also exempt. Verify your exemption status with the VA before closing.
What are the funding fee rates?
For purchase loans (2023-2024): first use with 0-4.99% down = 2.15%; first use with 5-9.99% down = 1.50%; first use with 10% or more down = 1.25%. Subsequent use rates are higher: 3.30% for 0-4.99% down, 1.50% for 5-9.99%, 1.25% for 10%+.
Can the funding fee be financed?
Yes. The VA allows the funding fee to be included in the loan amount rather than paid in cash at closing. This increases the loan balance and the monthly payment slightly.
Is there a VA funding fee for refinances?
Yes. VA Interest Rate Reduction Refinance Loans (IRRRL) have a 0.50% funding fee. Cash-out refinances have the same rates as purchase loans based on whether it is a first or subsequent use.
Official sources
- Department of Veterans Affairs: VA Funding Fee and Closing Costs.
- Consumer Financial Protection Bureau: What is a VA loan?
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.