How is my VA funding fee calculated?

Several factors, such as down payment size, disability status, and if it’s your first time using a VA loan or not, play into how your VA funding fee is calculated. The 2.15% for first-time use and 3.3% for subsequent use stays the same for the majority of borrowers, but the total dollar amount will depend on the size of your loan.

How much is a VA funding fee based on a down payment?

Down payment and VA funding fee amounts are expressed as a percentage of total loan amount. For example: Let’s say you’re using a VA-backed loan for the first time, and you’re buying a $200,000 home and paying a down payment of $10,000 (5% of the $200,000 loan). You’ll pay a VA funding fee of $2,850, or 1.5% of the $190,000 loan amount.

Do you have to pay the VA funding fee?

Not everyone is required to pay the VA funding fee. In fact, some Veterans may have the fee waived entirely. The VA exempts specific borrowers from paying the funding fee on both purchase and refinance loans. Those exempt from paying the VA funding fee include: