Loan programs
VA Funding Fee Calculator for Purchase, Cash-Out and IRRRL Loans
The VA funding fee is a one-time charge on most VA loans. Enter your loan details to see the percentage that applies, the dollar amount and your loan total if you finance it.
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VA funding fee
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In plain words
For a $350,000 VA loan, the funding fee rate is 2.15%, which is $7,525. If you add it to the loan, you would borrow $357,525.
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Key figures
- VA funding fee$7,525
- Funding fee rate2.15%
- Loan amount if the fee is financed$357,525
- Fee's cost per month if financed$48
- First use
- Later use
View chart as table
| Down payment (%) | First use | Later use |
|---|---|---|
| Down payment (%) 0% | $7,525 | $11,550 |
| Down payment (%) 5% | $5,250 | $5,250 |
| Down payment (%) 10% | $4,375 | $4,375 |
Compare down payments
| Scenario | First use | Later use |
|---|---|---|
| 0% | $7,525 | $11,550 |
| 5% | $5,250 | $5,250 |
| 10% | $4,375 | $4,375 |
How to use this calculator
- Enter the loan amount before the funding fee.
- Enter your down payment percentage (0% is allowed).
- Say whether this is your first VA loan or a later use, and choose the loan purpose.
- Tick the exemption box if your Certificate of Eligibility shows you are exempt.
- Read the fee rate, the dollar amount and the loan total with the fee financed.
VA home loans are one of the best deals in US housing: no required down payment and no monthly mortgage insurance. In return, most borrowers pay a one-time VA funding fee. Its rate depends on how you use the loan, how much you put down and whether you have used your VA entitlement before. This calculator applies the table VA publishes.
How this VA funding fee calculator works
The calculator looks up your rate in VA’s table, then multiplies:
Funding fee = loan amount × funding fee rate
Loan with fee financed = loan amount + funding fee
| Loan purpose | Down payment | First use | After first use |
|---|---|---|---|
| Purchase or construction | Less than 5% | 2.15% | 3.3% |
| Purchase or construction | 5% to less than 10% | 1.5% | 1.5% |
| Purchase or construction | 10% or more | 1.25% | 1.25% |
| Cash-out refinance | Any | 2.15% | 3.3% |
| IRRRL (rate reduction refinance) | Any | 0.5% | 0.5% |
If you tick the exemption box, the fee is zero.
Worked examples
Example 1: first home, no money down
A veteran buys a home with a $350,000 VA loan and no down payment, using the benefit for the first time.
- Rate: less than 5% down, first use, so 2.15%.
- Fee: $350,000 × 2.15% = $7,525.
- Financed, the loan becomes $357,525.
Example 2: second VA home with 5% down
A service member who used a VA loan before borrows $350,000 after putting 5% down. The rate drops from 3.3% to 1.5%, so the fee is $5,250 instead of $11,550. That 5% down payment saves $6,300 in fees alone.
An IRRRL on a $300,000 balance would cost 0.5%, or $1,500.
What your result means
The funding fee is usually the largest closing cost on a VA purchase, but because there is no monthly mortgage insurance, it is often cheaper over time than FHA’s MIP or conventional PMI. If you are close to a threshold (5% or 10% down), it can pay to put a little more down. Run your full payment with the mortgage payment calculator, using the financed loan amount and PMI set to zero.
Program rules that change the answer
- Exemptions: a service-connected disability rating can remove the fee entirely. If your claim is pending at closing, ask your lender how a later award is handled.
- Entitlement: with full entitlement there is no VA loan limit, but lenders still check income, credit and VA’s residual income guideline.
- Native American Direct Loans and some other VA loans use different fees.
- Seller concessions: the seller can pay the funding fee as part of allowed concessions.
How to check whether you are exempt
- Get your Certificate of Eligibility (COE). You can request it through VA online, or your lender can request it for you. The COE states whether you are exempt from the funding fee.
- Look for the funding fee status line. If it says you are exempt, show it to your lender and make sure the Loan Estimate shows no funding fee.
- If you have a disability claim pending, tell your lender before closing. A rating awarded before closing can remove the fee, and a later award with an effective date before closing may lead to a refund.
- Surviving spouses who receive Dependency and Indemnity Compensation are usually exempt; bring the award letter.
The funding fee next to monthly mortgage insurance
A one-time fee can look large, but it is worth comparing with insurance you would pay every month on other loans. On the $350,000 first-use example above, the fee is $7,525. An FHA loan of a similar size with 3.5% down would carry a 1.75% upfront premium plus an annual premium of 0.55% for the life of the loan, about $160 a month at the start. After roughly four years of monthly FHA premiums alone, the FHA borrower has paid more than the VA fee, and the FHA premium continues. Check the FHA side with the FHA MIP calculator.
| Example on a $350,000 loan, no or minimum down | One-time charge | Monthly insurance |
|---|---|---|
| VA, first use | $7,525 funding fee | None |
| VA, exempt veteran | $0 | None |
| FHA, 3.5% down (on a similar loan) | 1.75% upfront MIP | About 0.55% a year, life of loan |
Assumptions
- Rates follow the table on VA’s funding fee page as of October 2026.
- The down payment percentage is measured against the purchase price.
- The fee is calculated on the loan amount before the fee is added.
Common mistakes
- Forgetting to check exemption status. Many disabled veterans pay a fee they did not owe; check your Certificate of Eligibility before closing.
- Assuming the fee is always 2.15%. Later use with little down costs 3.3%.
- Comparing VA and FHA payments without the fee. Include it to compare fairly.
Limits of this estimate
Your lender will confirm the fee from your Certificate of Eligibility and loan terms. For eligibility, service requirements and entitlement, read our VA loan guide; to compare the funding fee with FHA and conventional mortgage insurance, see mortgage insurance explained.
For context, the national average 30-year fixed rate was 7.40% as of October 15, 2026 (Freddie Mac). FHA, VA and USDA rates are set by each lender and often differ.Source: Freddie Mac Primary Mortgage Market Survey, via FRED
Frequently asked questions
How much is the VA funding fee in 2026?
For a first-use purchase loan it is 2.15% with less than 5% down, 1.5% with 5% to less than 10% down, and 1.25% with 10% or more down. After first use it is 3.3% with less than 5% down. IRRRLs are 0.5%, according to VA's published table.
Who does not have to pay the VA funding fee?
Veterans receiving VA compensation for a service-connected disability, those entitled to it but receiving retirement or active-duty pay instead, eligible surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients, among others. Your Certificate of Eligibility shows whether you are exempt.
Can I finance the VA funding fee?
Yes. Most borrowers add the fee to the loan amount instead of paying cash at closing. This raises the balance and the monthly payment slightly.
Why is the fee higher the second time?
VA charges more for later use when you put less than 5% down. With 5% or more down, first and later use pay the same rate.
Do I get the funding fee back if I later get a disability rating?
If VA awards compensation effective before your loan closed, you may be eligible for a refund. Contact VA or your lender with your award letter.
Is the VA funding fee the same as mortgage insurance?
No. It is a one-time charge that helps keep the program running. VA loans have no monthly mortgage insurance, which is one reason they are often cheaper over time.
Does a down payment from a gift lower the fee?
The fee depends on how much you put down, not where it came from, as long as your lender accepts the source of funds.
Sources
Read the guides
Related calculators
- FHA MIP Work out the 1.75% upfront premium, the annual premium rate HUD assigns to your loan, the monthly cost and whether you pay it for 11 years or the life of the loan.
- USDA guarantee fee USDA guaranteed loans need no down payment, but they carry two fees: an upfront guarantee fee and an annual fee paid monthly. Estimate both here.
- FHA vs conventional Put the same home through both loan types and see which one costs less each month and over the years you plan to stay, with FHA mortgage insurance and conventional PMI both counted.
- Refinance break-even Compare your current payment with a new loan, see how many months of savings it takes to earn back the closing costs, and check the change in total interest.