Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan's cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. Most Vets will finance the VA Funding fee into the loan, but the borrower does have the option to pay the fee at closing.
There are some instances where the Veteran does NOT have a Funding Fee:
- Veteran receiving VA compensation for a service-connected disability, OR
- Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
- Surviving spouse of a Veteran who died in service or from a service-connected disability.
The Funding fee may also be higher:
- For utilizing the VA for additional use to purchase a new home.
- For National Guard members.
- For Reservist members.
Vetarns Administration Funding Fee Chart, Updated November 20, 2011, and are good until September 30, 2024.
| Purchase: First Time Home Buyer |
| Down Payment |
Active Duty/Retired |
Guard / Reserve |
| $0 Down |
2.15% |
2.40% |
| 5-10% Down |
1.50% |
1.75% |
| 10% or More |
1.25% |
1.50% |
| |
|
|
| Purchase: Additional Use |
| Down Payment |
Active Duty/Retired |
Guard / Reserve |
| $0 Down |
3.30% |
3.30% |
| 5-10% down |
1.50% |
1.75% |
| 10% or More |
1.25% |
1.50% |
| |
|
|
| Cashout Refinance |
| VA Usage |
Active Duty/Retired |
Guard / Reserve |
| 1st Time Use |
2.15% |
2.40% |
| Additional Use |
3.30% |
3.30% |
| |
|
|
| IRRL (Interest Rate Reduction Loan or Streamline) |
| VA Usage |
Active Duty/Retired |
Guard / Reserve |
| 1st Time Use |
0.5% |
0.5% |
| Additional Use |
0.5% |
0.5% |
Questions on VA Loans? Don't hesitate in calling us, we are VA experienced! We Serve Veterans in
Boise, Meridian, Nampa, Caldwell, and all of Idaho!
1-877-877-0404