Back to Glossary Terms

VA Funding Fee

VA loans require no down payment or mortgage insurance. To help offset the costs to the taxpayers, VA borrowers may pay a VA funding fee.

For a no down payment loan, the VA funding fee is currently 2.30% of the loan amount for first-time buyers. For veterans that use this benefit for a zero down mortgage a second time, the fee increases to 3.60% of the loan amount. Below are the most recent VA funding fee rates based on the purpose of your loan, your down payment, and whether you’re a first-time or repeat VA home loan benefits user:

Type of loan Down payment First-time user Subsequent user
Purchase and construction 0% 2.30% 3.60%
Purchase and construction 5% or more 1.65% 1.65%
Purchase and construction 10% or more 1.40% 1.40%
Cash-out and regular refinance 90% maximum loan-to-value (LTV) ratio 2.30% 3.60%
Interest rate reduction refinance loan (IRRRL) No equity required 0.5% 0.5%

Veterans with a service-connected disability may be exempt from paying the funding fee.