# VA funding fee

> The VA funding fee is a one-time charge on most VA-backed loans, set by loan type, down payment and prior use. Current rates and who is exempt.

URL: https://mail.mortgage-math-us.com/glossary/va-funding-fee/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**The VA funding fee** is a one-time charge, set as a percentage of the loan amount, that most borrowers pay on a VA-backed home loan. The rate depends on the loan type, your down payment and whether you’ve used the benefit before; you can pay it at closing or finance it. VA loans have no monthly mortgage insurance.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Purchase, first use, less than 5% down | 2.15% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Apr 7, 2023 |
| Purchase, after first use, less than 5% down | 3.3% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Apr 7, 2023 |
| Purchase, 10% or more down | 1.25% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Apr 7, 2023 |
| IRRRL (streamline refinance) | 0.5% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Apr 7, 2023 |

## Funding fee rates

| Loan | First use | After first use |
|---|---|---|
| Purchase, less than 5% down | 2.15% | 3.3% |
| Purchase, 5% to under 10% down | 1.5% | 1.5% |
| Purchase, 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.3% |
| [IRRRL](https://mail.mortgage-math-us.com/glossary/irrrl/) | 0.5% | 0.5% |

On a $350,000 purchase with no down payment, the fee is $7,525 the first time and $11,550 on a later use. Putting 10% down cuts it to $3,938.

## Who doesn’t pay

You’re exempt if you receive VA compensation for a service-connected disability, or are eligible for it but get retirement or active-duty pay instead; if you’re an eligible surviving spouse receiving Dependency and Indemnity Compensation; or if you’re an active-duty Purple Heart recipient. If a disability rating is later awarded with an effective date before your closing, you may get a refund. See the [VA loans guide](https://mail.mortgage-math-us.com/loan-types/va-loans/), [VA entitlement](https://mail.mortgage-math-us.com/glossary/va-entitlement/) and [using a VA loan twice](https://mail.mortgage-math-us.com/blog/using-a-va-loan-twice/).

## Sources

- [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) — VA funding fee, first use, less than 5% down; VA funding fee, after first use, less than 5% down; VA funding fee, 10% or more down (Apr 7, 2023)
- [VA: Funding fee and closing costs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/)

_General information, not financial advice._