What is the VA funding fee?

The VA funding fee is a one-time charge paid to the Department of Veterans Affairs to help keep the VA loan program running. For first-time use with no down payment it is 2.15% of the loan amount; with 5% down it drops to 1.50%, and with 10% or more it is 1.25%. Subsequent users pay 3.30% with no down payment. The fee can be paid in cash at closing or rolled into the loan.

Who is exempt from the VA funding fee?

Veterans receiving VA disability compensation, those rated 10% or more disabled, surviving spouses of veterans who died in service or from a service-connected disability, and active-duty service members who received the Purple Heart are exempt from the VA funding fee.

Do VA loans require PMI?

No. Unlike conventional loans with less than 20% down, VA loans never require Private Mortgage Insurance. The one-time funding fee replaces PMI, which can save VA borrowers $100–$300+ per month for the life of the loan.

Can the VA funding fee be financed?

Yes. Most VA borrowers roll the funding fee into the loan amount so they pay nothing extra at closing. The fee is added on top of the base loan amount and is amortized over the full loan term, slightly increasing the monthly payment.

Is there a maximum VA loan amount?

As of 2020, there is no maximum VA loan amount for veterans with full entitlement. The VA will guarantee 25% of the loan regardless of size, so qualified borrowers can take out loans well above the conforming loan limit. Lenders may still impose their own maximums.

⭐ For US veterans, active-duty service members, and eligible surviving spouses

VA Loan Calculator

VA loans let qualified borrowers buy a home with 0% down and no PMI — in exchange for a one-time funding fee. This calculator shows your real monthly payment and how much you save vs a conventional 5%-down loan.

Reference Rates

30yr Fixed 6.3% 15yr Fixed 5.65% Prime Rate 6.75% Fed Funds 3.64%

Apr 16, 2026 · FRED / Federal Reserve

1 Loan Details

Home Price

Down Payment (VA loans allow $0)

0.0% of purchase price

VA Loan Rate (current avg 6.3%)

Loan Term

2 VA Funding Fee

Use of VA Benefit

First Use Subsequent Use

Funding fee exempt

10%+ VA disability rating, surviving spouse, or active-duty Purple Heart recipient

Finance the funding fee

Roll the fee into the loan instead of paying it at closing

3 Taxes, Insurance & HOA

Annual Property Tax

Annual Homeowners Insurance

Monthly HOA Fees

Estimated Monthly Payment

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PITI total — principal, interest, taxes, insurance

Principal & Interest

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Property Tax

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Insurance

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HOA

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VA Funding Fee Breakdown

Fee Rate

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Funding Fee

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Total Loan Amount

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Cash at Closing

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Funding fee is rolled into the loan amount.

VA Loan vs Conventional 5%-Down (with PMI)

Same home price and rate, side by side

	VA Loan	Conventional 5%	Difference
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Monthly savings vs conventional: — in the first year (until PMI is removed)

Funding Fee by Down Payment

A larger down payment lowers your funding fee rate

Scenario	Down Payment	Fee Rate	Funding Fee
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What is a VA Loan?

A VA loan is a mortgage guaranteed by the Department of Veterans Affairs and offered by private lenders. Eligible borrowers — veterans, active-duty service members, National Guard, Reserves, and certain surviving spouses — can buy a primary residence with no down payment and no private mortgage insurance.

The trade-off is a one-time VA funding fee charged on most loans. The fee scales with your down payment and whether this is your first or subsequent use of the benefit.

For a $400,000 loan with 0% down on first use, the fee is 2.15% — about $8,600 — usually rolled into the loan.

Why Choose a VA Loan?

✓ 0% down payment allowed
✓ No PMI — saves $100–$300+/month
✓ Competitive interest rates (often below conventional)
✓ Funding fee waived for disabled veterans (10%+)
✓ No prepayment penalty
✓ Reusable benefit — can be used multiple times

Once you've calculated your VA payment, use the Mortgage Calculator for a side-by-side conventional comparison or the Affordability Calculator to find your max budget.

2024 VA Funding Fee Reference Table

Rates effective April 7, 2023 (38 CFR 36.4313). Purchase loans only.

Down Payment	First Use	Subsequent Use
Less than 5%	2.15%	3.30%
5% – 9.99%	1.50%	1.50%
10% or more	1.25%	1.25%

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