VA Funding Fee Calculator
The official VA funding fee rates for purchase, cash-out refinance, IRRRL, and NADL loans, with down payment tiers and the exemption check.
What it does
VA-backed loans do not require a down payment or monthly mortgage insurance, and the funding fee is what replaces those costs. It is a one-time charge that helps keep the program self-funded for taxpayers.
The rate depends on three things: the loan type, whether this is a first or later use, and for purchases, the size of the down payment. First use with less than 5% down pays 2.15% of the loan; 5% or more pays 1.5%; 10% or more pays 1.25%.
The fee applies to the loan amount, not the purchase price. VA's own example has a $200,000 home bought with $10,000 down, a $190,000 loan, and a fee of 2,850 dollars at the 1.5% tier.
Refinances work differently. A cash-out refinance pays 2.15% on first use and 3.3% afterward, while the IRRRL streamline pays a flat 0.5%. The Native American Direct Loan purchase pays a flat 1.25%.
Several groups skip the fee entirely, including veterans receiving compensation for a service-connected disability, some surviving spouses, and active-duty members with a Purple Heart. The fee can be paid at closing or financed into the loan.
How to use
- Pick the loan type: purchase, cash-out refinance, IRRRL, or NADL.
- Say whether this is a first or later use of a VA loan; flat-rate loans ignore this.
- For purchases, enter the down payment percentage.
- Enter the loan amount, not the purchase price.
- Answer the exemption question; disability compensation and some other situations remove the fee.
- Read the fee, the rate applied, and what the loan becomes if the fee is financed.
Formula
- Loan amount
- The amount borrowed; the fee applies to this, not the home price.
- Rate
- The percentage from the official funding fee chart for your loan type, use, and down payment.
- Exemption
- A qualifying disability or survivor status removes the fee.
The down payment tiers only move the purchase rate; cash-out, IRRRL, and NADL ignore the down payment entirely. Rates were last set effective April 7, 2023. If VA awards disability compensation with an effective date before your closing, you can request a refund of a fee you already paid, but a rating that arrives after closing does not refund the fee.
Worked example
Example: $190,000 first-use purchase, 5% down
VA's published example: $200,000 home, $10,000 down, $190,000 loan (defaults).
- Down payment: 10,000 / 200,000 = 5%, which lands in the 5% or more tier.
- First use rate for that tier: 1.5%.
- Fee: 190,000 x 1.5% = $2,850.
- If financed, the fee is added to the loan: 190,000 + 2,850 = $192,850.
- Closing costs other than the funding fee cannot be financed on a purchase.
Reference table
| Loan type | First use | After first use |
|---|---|---|
| Purchase, under 5% down | 2.15% | 3.3% |
| Purchase, 5% to under 10% down | 1.5% | 1.5% |
| Purchase, 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.3% |
| IRRRL | 0.5% | 0.5% |
| NADL purchase | 1.25% | 1.25% |
Limits
- Only the funding fee is calculated; appraisal, title, and lender fees are separate closing costs.
- Manufactured home loans, loan assumptions, and vendee loans have their own rates that are not in this tool.
- The exemption is assumed correct if you select it; VA requires documentation such as a rating decision.
- Rates follow the official chart and can change when the law changes.
Common mistakes
- Applying the fee to the purchase price instead of the loan amount.
- Assuming a previous VA loan was paid off means the fee never rises; the tier follows use, not the balance.
- Forgetting that 5% down exactly earns the 1.5% tier, not 2.15%.
- Expecting the fee to be refunded because a disability rating arrived after closing.
- Paying the fee in cash when financing it into the loan is usually possible on a purchase.
Try it yourself
Quick checks. Answers sit tucked under each question.
Purchase, after a previous VA loan, 5% down, $250,000 loan?
The 5% tier pays 1.5% both times, so the fee is $3,750.
IRRRL on a $200,000 loan?
Flat 0.5%: $1,000, regardless of use.
First-use purchase, 10% down, $300,000 loan?
1.25%: $3,750.
Questions
What is the VA funding fee?
A one-time fee on VA-backed and VA direct loans, calculated as a percentage of the loan amount. It keeps the loan program funded since VA loans need no down payment or monthly mortgage insurance.
Who is exempt from the funding fee?
Veterans receiving compensation for a service-connected disability, surviving spouses receiving DIC, active-duty members with a Purple Heart, and some others with a documented proposed rating before closing.
Can I finance the funding fee?
Yes on purchases; it rolls into the loan amount and you pay interest on it over the term. Other closing costs cannot be financed on a purchase.
Does the fee go up on my second VA loan?
Only in the under-5%-down purchase tier, which rises from 2.15% to 3.3%. The 5% and 10% down tiers stay the same at 1.5% and 1.25%.
What if I think I paid too much?
If VA later grants compensation with an effective date before your closing, a refund can be requested through the regional loan center. A rating after closing does not trigger a refund.
Does a previous loan on a manufactured home count as first use?
No. VA treats a manufactured-home-only purchase as still first use for the funding fee chart.
Sources
- VA: funding fee and closing costs, rate charts effective April 7, 2023
- 38 USC 3729: VA loan funding fee