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  • Writer's pictureNichole Fox

What is a VA Funding Fee?

The VA Funding Fee is a fee that is paid directly to the Department of Veteran's Affairs and allows VA eligible borrowers to enjoy loan benefits such as $0 down financing and no PMI payments. The fee may be paid in cash or financed, or a combination of the two, provided the entire VA loan amount including any financed fee does not exceed $417,000.

How to calculate the VA Funding Fee

The funding fee is calculated based on 5 different factors: loan type (purchase or refinance), type of service, loan amount, down payment and prior VA loan use. Please see the charts below for additional details.

VA Funding Fee Exception

If you are currently receiving VA Disability Benefits with 10% or greater disability, then you are exempt from the VA Funding Fee for both new VA Home Loans and VA Streamline Loans.

The VA Funding Fee can be rolled into the new VA loan.

This is a great benefit. You can buy a house with no money down and roll the funding fee into the new loan amount. If you have any questions, call the experts at Freedomstar Financial.

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