Updated in 2023, the VA funding fees are a paid directly to the VA as a % of the final loan amount to insure mortgage lenders in case of loan default. The fee is typically financed into the final loan balance.
VA Purchase or Construction Loans
Down Payment Amount
Funding Fee Percentage
First Use
Less than 5%
2.15%
5% or more
1.50%
10% or more
1.25%
Subsequent Use
Less than 5%
3.30%
5% or more
1.50%
10% or more
1.25%
Disabled Veteran
Exempt
VA Cash-Out Refinance
Funding Fee Percentage
First Use
2.15%
Subsequent Use
3.3%
Disabled Veteran
Exempt
Other VA Home Loan Types
Loan Type
Funding Fee Percentage
Interest Rate Reduction Refinance Loans (IRRRLs)
0.5%
Manufactured Home Loans (not permanently affixed)
1%
Loan Assumptions
0.5%
Native American Direct Loan (Non-IRRRL)
1.25%
Disabled Veteran
Exempt
Prequalify for your VA Home Loan
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