VA announced an update to the VA funding fee charges for the VA home loan program. The VA funding fees, increased in 2020, are now reverting to their original lower rates, starting on loans closing on or after 4/7/23. This is excellent news for Veterans and military families.
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 |
