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The VA funding fee
VA loans do not charge monthly mortgage insurance. Instead there is a one-time funding fee, paid at closing or added to the loan. The rate depends on your down payment and whether you have used the benefit before. See the VA funding fee chart.
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
You do not pay the fee if you receive VA disability compensation, are an active-duty Purple Heart recipient, or are a surviving spouse receiving Dependency and Indemnity Compensation, among other exemptions.
Worked example
Price $350,000, no down payment, first use: fee 2.15% × $350,000 = $7,525.00. Loan = $357,525.00. At 6.25% for 30 years, principal and interest = $2,201.34. Taxes and insurance are extra.
Payment by price (0% down, first use, 6.25%)
| Price | Funding fee | Loan | P&I | P&I if exempt |
|---|---|---|---|---|
| $250,000 | $5,375 | $255,375 | $1,572 | $1,539 |
| $300,000 | $6,450 | $306,450 | $1,887 | $1,847 |
| $350,000 | $7,525 | $357,525 | $2,201 | $2,155 |
| $400,000 | $8,600 | $408,600 | $2,516 | $2,463 |
| $500,000 | $10,750 | $510,750 | $3,145 | $3,079 |
| $600,000 | $12,900 | $612,900 | $3,774 | $3,694 |
Example rates are for comparison only, not offers or current quotes. Your rate depends on credit, loan-to-value and lender.
Sources and assumptions
- VA.gov: funding fee and closing costs (rates for loans closed April 7, 2023 to November 14, 2031)
Related
Frequently asked questions
Do VA loans have PMI?
No. VA loans have no monthly mortgage insurance, only the one-time funding fee unless you are exempt.
What is the VA funding fee in 2026?
For purchase loans closed through November 14, 2031: 2.15% first use with under 5% down (3.3% subsequent use), 1.5% with 5% down, and 1.25% with 10% or more down.
Can the VA funding fee be financed?
Yes. Most borrowers add it to the loan amount.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, eligible surviving spouses receiving DIC, and active-duty Purple Heart recipients, among others.