VA Funding Fee Calculator
Calculate your VA loan funding fee based on service type, down payment percentage, and loan usage. See the fee amount, total loan with fee, and monthly payment impact. Everything runs in your browser — no data is stored or sent to any server.
How the VA Funding Fee Works
The VA funding fee is a one-time payment that veterans, service members, and eligible surviving spouses pay on a VA-backed home loan. This fee helps lower the cost of the loan program for U.S. taxpayers since VA loans require no down payment and no private mortgage insurance (PMI). The fee can be paid upfront at closing or rolled into the total loan amount.
The funding fee percentage depends on several factors: your military service type (Regular Military vs. Reserves/National Guard), how much down payment you make, and whether this is your first time using a VA loan or a subsequent use. Veterans with service-connected disabilities are exempt from the funding fee entirely.
VA Funding Fee Rates (2024-2026)
First-Time Use:
- 0% down: 2.15% (Regular) / 2.4% (Reserves/Guard)
- 5-9.99% down: 1.5% (Regular) / 1.75% (Reserves/Guard)
- 10%+ down: 1.25% (Regular) / 1.5% (Reserves/Guard)
Subsequent Use:
- 0% down: 3.3% (both)
- 5-9.99% down: 1.5% / 1.75%
- 10%+ down: 1.25% / 1.5%
Disabled Veterans: $0 (exempt)
Who Is Exempt from the VA Funding Fee
Several groups are exempt from paying the VA funding fee. Veterans receiving VA disability compensation are fully exempt. Purple Heart recipients who are still on active duty are also exempt. Surviving spouses of veterans who died in service or from a service-connected disability do not pay the fee. If you are eligible for compensation but receive retirement or active duty pay instead, you may still qualify for an exemption. Always verify your exemption status with the VA before closing on your loan.
Being exempt from the funding fee can save thousands of dollars on your home purchase. For example, on a $300,000 loan with zero down payment, a first-time Regular Military borrower would pay $6,450 in funding fees — money that an exempt veteran keeps in their pocket.
Rolling the Fee into Your Loan
Most borrowers choose to finance the funding fee by adding it to their loan balance rather than paying it upfront at closing. While this means you pay interest on the fee over the life of the loan, it reduces the cash needed at closing. This calculator shows you exactly how much the fee adds to your monthly mortgage payment so you can make an informed decision about whether to pay upfront or finance it.
VA Funding Fee vs. PMI
Conventional loans require private mortgage insurance (PMI) when the down payment is less than 20%. PMI typically costs 0.5% to 1% of the loan amount annually and continues until you reach 20% equity. The VA funding fee is a one-time cost, making it significantly cheaper over the life of the loan compared to years of PMI payments. This is one of the major financial advantages of VA loans for eligible service members.
Frequently Asked Questions
What is the VA funding fee?
The VA funding fee is a one-time charge on VA-backed home loans that helps offset the cost of the loan program to U.S. taxpayers. It varies based on service type, down payment amount, and whether it is your first or subsequent use of a VA loan. The fee can be paid at closing or rolled into the loan balance.
Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses of veterans who died in service or from service-connected disabilities are exempt from the funding fee. If you believe you qualify for an exemption, contact the VA to verify your status before closing.
Can I roll the funding fee into my loan?
Yes, most borrowers choose to finance the VA funding fee by adding it to their total loan amount. While this increases your monthly payment slightly, it reduces the cash needed at closing. This calculator shows exactly how much the fee adds to your monthly mortgage payment.
Why is the fee higher for subsequent use?
The VA charges a higher funding fee for subsequent use with no down payment (3.3% vs. 2.15% for Regular Military) because the VA loan program assumes greater risk on repeat usage. However, making a down payment of 5% or more reduces the fee to the same rate as first-time use.
Does the funding fee apply to VA refinance loans?
Yes, VA refinance loans (both IRRRL and Cash-Out refinances) have their own funding fee schedules. The IRRRL (Interest Rate Reduction Refinance Loan) has a reduced fee of 0.5%. Cash-Out refinances follow the same fee structure as purchase loans based on usage history.
How does the VA funding fee compare to PMI?
The VA funding fee is a one-time cost, while PMI on conventional loans is an ongoing monthly expense typically ranging from 0.5% to 1% of the loan annually. Over the life of the loan, the VA funding fee is usually significantly cheaper than years of PMI payments, making VA loans more affordable long-term.