VA Loan Funding Fee Calculator

The VA Funding Fee can be rolled into the mortgage or paid upfront. Borrowers usually choose to roll the funding fee amount into their monthly mortgage payments, which reduces the amount of money required at closing.

Be sure to talk with your VA loan team if you wish to roll the VA Funding Fee into your mortgage.

Not necessarily. The VA Funding Fee can be paid in multiple ways. Borrowers have the choice to pay the fee upfront or finance it into monthly mortgage payments. If you do a cash-out refinance, however, you can pay the VA Funding Fee using cash from your home’s equity.

The VA Funding Fee is calculated as a percentage of the total loan amount. Several factors, such as down payment size, disability status, and if it’s your first time using a VA loan or not, play into how your VA Funding Fee is calculated.

The 2.15% for first-time use and 3.3% for subsequent use stays the same for the majority of borrowers, but the total dollar amount will depend on the size of your loan.

Veterans with a disability rating of higher than 10%, Purple Heart recipients, and surviving spouses of veterans who died in the line of duty are exempt from paying the VA Funding Fee. About one-third of all VA loan borrowers are exempt, so ask a VA loan lender if you qualify for an exemption.

The VA Funding Fee rate is 2.15% of the total loan amount for first-time VA loan homebuyers with no down payment. The funding fee increases to 3.30% for those reusing their VA loan benefit.

Borrowers can decrease their funding fee rate by putting at least 5% down on a VA home loan, and about one-third of all borrowers are exempt from paying the funding fee altogether.

However, VA Streamline refinance loans only require a 0.5% fee for all borrowers.

Most borrowers choose to roll the VA Funding Fee into their loan amount rather than pay it upfront at closing. This increases both your total loan amount and your monthly mortgage payment.

For example, on a $300,000 VA loan with a 2.15% funding fee, you'd finance an additional $6,450. Over a 30-year loan at 6.5% interest, this adds roughly $41 to your monthly payment.

A proper VA mortgage calculator should automatically factor the funding fee into your payment estimate, including exemptions for Veterans with service-connected disabilities. Use our VA mortgage calculator to see exactly how the funding fee impacts your monthly payment based on your specific situation, including whether you're exempt or plan to make a down payment.

Once you know your estimated funding fee, the next step is understanding how it fits into your overall closing costs. Most VA borrowers choose to finance the funding fee into their loan amount, which reduces the cash needed at closing but slightly increases your monthly payment.

If you'd prefer to pay the funding fee upfront, you'll need to factor that into your closing cost budget. You can also ask the seller to cover the funding fee as part of their seller concessions on a purchase loan.