Funding Fees

VA is not a lender. It is a mortgage insurer. Because they charge no monthly mortgage insurance, they offset the risk of foreclosures by having all share in paying a funding fee, unless the veteran is diagnosed as at least 10% disabled.

Below are the funding fee amounts based on type of loan, type of veteran, down payment and eligibility usage.

VA PURCHASE / CONSTRUCTION LOANS
Type of Veteran Down Payment % – First Time Use % – Subsequent Use
Reg. Military None

5% – 9.99%

10% or more

 2.15%

1.50%

1.25%

 3.30%*

1.50%

1.25%
Reserves None

5% – 9.99%

10% or more

 2.40%

1.75%

1.50%

 3.30%*

1.75%

1.50%

* The higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan.

VA CASH OUT / REGULAR REFINANCE LOANS
Type of Veteran % – First Time Use % – Subsequent Use
Reg. Military 2.15% 3.3%
Reserves 2.40% 3.3%

VA FIXED FUNDING FEE LOANS
Type of Loan % – First time or subsequent use
IRRL (Streamline Refinance) 0.50%
Manufactured Homes (Not perm. fixed) 1.00%
Loan Assumptions 0.50%

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