{"id":491,"date":"2026-08-04T04:44:18","date_gmt":"2026-08-04T04:44:18","guid":{"rendered":"https:\/\/thirstier.news\/?p=491"},"modified":"2026-08-04T04:44:18","modified_gmt":"2026-08-04T04:44:18","slug":"va-funding-fee-who-pays-and-who-is-exempt","status":"publish","type":"post","link":"https:\/\/thirstier.news\/?p=491","title":{"rendered":"VA funding fee: Who pays and who is exempt?\u00a0"},"content":{"rendered":"
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Compared\u00a0to\u00a0other home loan options, the VA-guaranteed\u00a0home loan<\/a> stands above the rest.\u00a0And\u00a0with great benefits for all comes a minor fee for some, known as\u00a0the VA\u00a0funding\u00a0fee<\/a>.\u00a0\u00a0<\/p>\n

What\u2019s\u00a0the VA funding fee?\u00a0<\/h2>\n

The VA\u00a0funding\u00a0fee\u00a0is a one-time payment\u00a0made by\u00a0borrowers\u00a0on VA-guaranteed home loans\u00a0used to buy, build, improve, or repair a home or refinance a mortgage.\u00a0This fee helps\u00a0offset the cost of the program\u00a0to\u00a0taxpayers,\u00a0allowing\u00a0Veterans\u00a0to\u00a0benefit\u00a0from\u00a0features like\u00a0no down payment and no monthly private mortgage insurance.\u00a0\u00a0
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The fee\u00a0for\u00a0first-time homebuyers\u00a0is\u00a0typically\u00a02.15%\u00a0and\u00a0can be\u00a0up to 3.3% for\u00a0subsequent\u00a0uses. The exact amount depends on factors like the size of\u00a0the down payment and the number of times the benefit has been used.\u00a0
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Borrowers have flexibility in how they pay the fee:\u00a0It can\u00a0be\u00a0\u201crolled\u201d\u00a0into the\u00a0loan\u2014meaning\u00a0it\u2019s\u00a0included in\u00a0the\u00a0total loan amount,\u00a0and\u00a0the\u00a0monthly mortgage\u00a0payment\u00a0is calculated\u00a0based on that\u2014or paid\u00a0out-of-pocket\u00a0at closing.\u00a0\u00a0<\/p>\n

As the VA funding fee chart shows,\u00a0making a larger\u00a0down payment\u00a0will reduce the\u00a0funding fee percentage.\u00a0And\u00a0there\u2019s\u00a0good news for Veterans at tax time:\u00a0the VA funding fee is now tax-deductible<\/a>.\u00a0<\/p>\n

For Veterans refinancing or those using a Native American Direct Loan, please check the\u00a0VA funding fee website for your specific funding fee rate<\/a>, as they vary.\u00a0<\/p>\n

VA funding fee\u00a0rates for Veterans,\u00a0active-duty\u00a0service\u00a0members, and\u202fnational guard and reserve\u00a0members\u00a0<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n
Loan Use<\/th>\nIf your down payment is\u2026<\/th>\nYour VA funding fee will be\u2026<\/th>\n<\/tr>\n<\/thead>\n
First use\u00a0<\/td>\nLess than 5%\u00a0<\/td>\n2.15%\u00a0<\/td>\n<\/tr>\n
First use<\/td>\n5% or more\u00a0<\/td>\n1.5%\u00a0<\/td>\n<\/tr>\n
First use<\/td>\n10% or more\u00a0<\/td>\n1.25%\u00a0<\/td>\n<\/tr>\n
After first use\u00a0<\/td>\nLess than 5%\u00a0<\/td>\n3.3%\u00a0<\/td>\n<\/tr>\n
After first use<\/td>\n5% or more\u00a0<\/td>\n1.5%\u00a0<\/td>\n<\/tr>\n
After first use<\/td>\n10% or more\u00a0<\/td>\n1.25%\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

VA-Backed\u00a0Cash-Out\u00a0Refinancing\u00a0Loans\u00a0rates for Veterans,\u00a0active duty\u00a0service\u00a0members, and National Guard and Reserve\u00a0members:<\/p>\n