VA funding fee chart (purchase loans)
| Down payment | First use | After first use |
|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
A VA cash-out refinance costs 2.15% on first use and 3.3% after, and a VA streamline refinance (IRRRL) costs 0.5%. The fee does not apply if you are exempt.
Why a VA loan can be cheaper
- No down payment needed with full entitlement.
- No PMI, which can save $100 to $300 a month compared with low-down-payment conventional loans.
- Competitive rates, often below conventional rates.
- Limits on closing costs that lenders can charge veterans.
Example
On a $375,000 home with 0% down on first use, the funding fee is 2.15% ($8,062.50). Financing it makes the loan $383,062.50; at 6% for 30 years, principal and interest are about $2,297 a month.
Compare with other loan types using the FHA loan calculator or the mortgage calculator. Receiving disability pay? See the VA disability calculator.
Last reviewed October 2026.
Frequently asked questions
What is the VA funding fee?
A one-time fee paid to the Department of Veterans Affairs that keeps the VA home loan program running and replaces mortgage insurance. For a purchase loan it is 2.15% of the loan with less than 5% down on first use (3.3% on later use), 1.5% with 5% to 9.99% down, and 1.25% with 10% or more down. It can be paid in cash or added to the loan.
Who is exempt from the funding fee?
Veterans receiving VA compensation for a service-connected disability, Purple Heart recipients on active duty, surviving spouses receiving Dependency and Indemnity Compensation, and some others. Your Certificate of Eligibility shows whether you are exempt.
Do VA loans require a down payment?
No. Eligible borrowers with full entitlement can buy with 0% down, with no loan limit set by the VA. Putting money down lowers the funding fee and the payment, and may be needed if you have reduced entitlement.
Do VA loans have PMI?
No. VA loans never charge monthly private mortgage insurance, even with zero down. That is one of the biggest savings compared with conventional or FHA loans.
Who can get a VA loan?
Service members and veterans who meet minimum service requirements, some National Guard and Reserve members, and certain surviving spouses. You apply for a Certificate of Eligibility through the VA or your lender.