The VA Funding Fee is a governmental fee applied to every VA purchase and refinance loan. This fee is set by Congress and goes straight to the Department of Veterans Affairs to help fund the loan program.
When using the benefit for the first time, Veterans pay 2.15% of the loan amount on a purchase or Cash-Out refinance. For all subsequent uses, the fee rises to 3.3% of the loan amount. The funding fee for a VA Streamline refinance is 0.5%.
Buyers can lower their funding fee exposure by making a down payment.
Veterans can choose to finance this fee into their loan rather than pay it in cash at closing. They can also ask sellers to cover it as part of any concessions. Veterans receiving compensation for a service-connected disability and select others are exempt from this fee entirely.
To calculate your VA Funding Fee, use Veterans United Home Loans' Funding Fee Calculator here.