VA Funding Fee Calculator

The VA funding fee depends on first-time vs subsequent use, your down payment, and whether it’s a purchase or refinance. Run your scenario through the calculator below – and check the exemption section if you have a service-connected disability rating.

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Rolled Into the Loan

The funding fee is almost always financed into the loan amount, not paid out of pocket at closing. Your $0-down VA loan stays $0 down even with the fee.

Down Payment Lowers It

10% or more down drops the fee from 2.15% (or 3.30% subsequent use) to 1.25%. Worth running the math if you have the cash.

Disabled Vets: $0 Fee

10%+ VA service-connected disability rating means the funding fee is zero. Same for Purple Heart recipients on active duty and many surviving spouses.

Reference – Current VA funding fees

VA Funding Fee by Scenario

The funding fee is paid to the VA (financed into the loan or paid at closing). It depends on whether you’ve used your VA entitlement before, your down payment, and whether it’s a purchase or a refinance. Reservists and National Guard pay the same as active-duty since 2020.

Purchase / Construction

Down payment	First use	Subsequent
$0 – 4.99%	2.15%	3.30%
5% – 9.99%	1.50%	1.50%
10% or more	1.25%	1.25%

IRRRL (Streamline Refi)

Use type	Fee
First or subsequent	0.50%
Same flat rate regardless of how many times you’ve used your entitlement. Easiest VA refinance there is.

Cash-Out Refinance

Use type	Fee
First use	2.15%
Subsequent	3.30%
No down-payment tiers – same fee regardless of LTV.

Schedule reflects the FY2026 VA funding fee table (unchanged since the Blue Water Navy Vietnam Veterans Act took effect in 2020). Verify on VA.gov →

Calculator – Run your numbers

What Will Your Funding Fee Be?

Enter your loan amount and scenario; we’ll calculate the funding fee in dollars. The fee is usually rolled into the loan amount, not paid out of pocket.

Loan amount

Loan type

VA entitlement use

Down payment

Funding fee rate

2.15%

Estimated fee

$7,525

Heads up: The funding fee is typically rolled into your loan amount, not paid out of pocket. If you finance it, the new loan total would be the original amount plus this fee.

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Funding Fee Exemptions

You may be exempt from the funding fee entirely if you fall into one of these categories:

You have a VA service-connected disability rating of 10% or higher (most common exemption)
You’re an active-duty service member with a Purple Heart at the time of closing
You’re a surviving spouse of a veteran who died in service or from a service-connected disability, and you’re receiving DIC (Dependency and Indemnity Compensation)
You’d be entitled to disability compensation if you weren’t receiving retirement or active-service pay instead

How to confirm: Your COE (Certificate of Eligibility) from the VA shows your funding fee status. We pull this during pre-approval and verify before quoting your numbers. If you’re exempt, the calculator above doesn’t apply to you – your fee is $0.

If you’re not sure of your disability rating or exemption status, call us – we’ll pull your COE and tell you immediately. Saves disabled veterans thousands of dollars at closing.

How the VA Funding Fee Works

The VA funding fee is a one-time payment that goes to the Department of Veterans Affairs to keep the VA loan program self-sustaining. Because VA backs the loan against default, the funding fee is what funds that guarantee – it’s why VA can offer $0-down loans without monthly mortgage insurance.

The fee is a percentage of the loan amount, not the home price. On a $350,000 purchase loan with no down payment, first-time use puts you at the standard 2.15% rate – that’s $7,525, financed into the loan. Your monthly payment carries the fee; you don’t bring it to closing.

Three things drive the rate: whether it’s your first time using your VA entitlement (or a subsequent use), how much you’re putting down, and whether the loan is a purchase or a refinance. The matrix above breaks down all three. The calculator below crunches your numbers in real time.

How It’s Paid

Almost every VA borrower rolls the funding fee into the loan amount rather than paying it out of pocket at closing. That’s the standard play. The result: you keep your $0-down advantage intact, and the fee becomes part of your monthly payment over the life of the loan.

You can pay it at closing if you’d rather not finance it – cash, gift funds, or seller concessions all work. Sellers can contribute up to 4% of the sales price toward closing costs on a VA loan, and the funding fee counts as part of that 4%. If you’re tight on cash and the seller is willing to pay, that’s another way to keep it off your loan balance.

Funding Fee vs FHA’s UFMIP – Which Is Cheaper?

If you’re choosing between VA and FHA, both have an upfront fee and both can be financed into the loan. The math:

VA funding fee: 2.15% first-time use, $0 down. No monthly MI ever.
FHA UFMIP: 1.75% upfront. Plus 0.55% annual MI at 3.5% down, paid monthly for the life of the loan.

VA’s upfront fee is slightly higher, but FHA’s recurring monthly MI usually makes it the more expensive program over time. On a $300K loan, FHA’s monthly MI alone runs about $137/mo – $49,000 over 30 years. VA carries no equivalent. If you’re eligible for VA, it almost always wins. See our loan program comparison for the full side-by-side.

What This Calculator Can’t Tell You

Honest about the limits:

Your exemption status. The calculator assumes you’ll pay the fee. If your VA Certificate of Eligibility (COE) shows you’re exempt – 10%+ disability rating, Purple Heart on active duty, qualifying surviving spouse – your real fee is $0. We pull your COE during pre-approval to confirm.
Loan amount above the conforming VA limit. If you’re over the conforming limit, the funding fee math changes – it applies to the entire loan, but down payment may be required on the portion above the limit. We work this out scenario-by-scenario.
Refinance scenarios with partial entitlement. If you have a current VA loan and entitlement is tied up, the fee math is more nuanced. The calculator covers the standard cases; we run the unusual ones manually.
State and lender fees. The funding fee is one VA-specific cost. Florida title insurance, recording fees, lender origination fees, and other closing costs are separate. We provide a full closing cost estimate at pre-approval.

Use the calculator as a directional check. For your real funding fee, real exemption status, and total cash-to-close, send us your scenario for a free pre-approval.

VA Funding Fee FAQ

No – and almost no veteran does. The funding fee is rolled into the loan amount, so it’s financed over the life of your mortgage rather than paid at closing. Your $0-down VA purchase stays $0 down. You can pay the fee out of pocket if you prefer (or have the seller cover it through closing-cost concessions, up to 4%), but financing it is the standard move.

Your VA Certificate of Eligibility (COE) shows your funding fee status directly. The most common exemption is a 10% or higher VA service-connected disability rating – if you have that, your fee is $0. Surviving spouses receiving DIC, active-duty Purple Heart recipients, and veterans entitled to disability compensation but receiving retirement pay instead are also exempt. We pull your COE during pre-approval and verify your status before quoting your numbers. If you’re not sure, call us – we’ll find out.

Subsequent-use fees are higher: 3.30% with less than 5% down (vs 2.15% first-time). The VA structures it this way to give first-time users the lowest barrier. If you put down 5% or more, the rate drops to 1.50% regardless of whether it’s your first or subsequent use. 10% down brings it to 1.25% across the board. If you have the cash for a down payment, subsequent users benefit the most from putting some down.

The funding fee is treated as mortgage insurance for tax purposes, which historically meant it was deductible if you itemized. The mortgage insurance deduction has expired and been renewed multiple times – check current IRS rules with a tax professional for your specific year. We’re not tax advisors; we just point at the door.

Flat 0.50% regardless of how many times you’ve used your entitlement. The IRRRL (Interest Rate Reduction Refinance Loan) is the simplest VA refinance there is – no appraisal in most cases, no income docs, no credit-score gymnastics. The 0.50% fee gets rolled into the new loan along with closing costs. If you bought with VA in the last 5-10 years and rates have dropped, the IRRRL is often a no-brainer.

Yes. VA allows sellers to contribute up to 4% of the sales price toward “concessions,” which include the funding fee, prepaid taxes/insurance, and discount points. (This is on top of standard closing costs the seller is already allowed to pay.) On a $300K purchase, that’s up to $12,000 the seller can put toward your closing. If you’re negotiating an offer, this is a real lever.

This happens. The VA’s records can lag behind your actual disability rating, especially if you were rated recently. We can submit an update request through the VA loan portal to get your COE corrected before closing. If you’re meaningfully disabled and your COE doesn’t reflect it, don’t let a closing happen with a funding fee charged – call us and we’ll fix it. Veterans have lost real money to this kind of administrative gap.

About the Author

Keith Meredith

Division President, Black Rock Mortgage
NMLS 303217 · 15+ years originating · $100M+ in mortgages closed

Keith Meredith is a 18 year mortgage industry expert who has originated over $100,000,000 in mortgages. Headquartered in Ocala, Florida, Keith runs Black Rock Mortgage as a division of Coast 2 Coast Mortgage, a lender licensed in 40 states. Keith specializes in manufactured home financing, self-employed mortgages, VA construction loans, and helping first-time buyers navigate FHA, USDA, and conventional programs. He creates written and video content to help borrowers understand their financing options.

Call or text directly: 352-615-1613 · Follow Keith on X, Facebook, Instagram, and LinkedIn

Get Your Real VA Numbers

The calculator gets you in the right ballpark. A pre-approval gives you the exact funding fee, exemption status, full closing cost estimate, and your real cash-to-close. Send us your scenario; we’ll pull your COE, run the math, and reach out within 24 hours on weekdays. Free, no obligation.