VA Funding Fee Table for Purchase & Refinance Loans

Veteran with familyVeterans who receive disability benefits or have a disability rating of 10% or more are exempt from the VA financing charge. Beginning January 1, 2020, Purple Heart recipients will now be eligible for a VA financing fee exemption when applying for a VA home loan.

The down payment and whether the veteran is applying for a first-time VA loan or recycling an existing VA loan influence the financing expenses.

According to the VA:
If you meet any of the following criteria, you will be exempt from paying a VA funding fee:

A member of the armed services on active duty who can demonstrate receipt of the Purple Heart prior to or on the loan closing date.

A service member who has been assigned a recommended or memorandum rating suggesting that you are eligible to pay for a pre-discharge claim,

If you are eligible for VA benefits due to a service-connected disability but are already receiving retirement or active-duty pay,

Whether you are receiving VA benefits as a consequence of a service-connected disability,

You are the surviving spouse of a Veteran who died in the line of duty, was disabled by service, or was completely handicapped and is receiving Dependency and Indemnity Compensation (DIC)

SOURCE: U.S. Department of Veterans Affairs

Here's a chart of the "new VA funding fee" percentages as of January 1, 2022. You can calculate the VA funding fee with the VA loan calculator.

VA funding fee table for 2022

VA Funding Fee Chart

How to calculate the VA funding fee

Sales Price = $100,000
Less down payment (if zero) = $0
Loan Amount = $100,000.00

Now multiply the mortgage amount by the VA funding fee percentage. For this example, we'll assume zero down payment and the veteran earned his or her eligibility as an active duty (regular military) veteran; and no down payment. Multiply the mortgage amount X funding fee percentage:

Loan Amount = $100,000
X VA funding fee percentage 2.30% $2,300.00
Final Loan Amount = $102,300.00

The funding fee is financed into the mortgage amount (or you can pay the fee in cash).

Your mortgage payment will be based on the Final Loan Amount of $102,300

VA cash out refinance table

Funding fee percentage for VA cash out refinance

Frequently Asked Questions Regarding the Veterans Affairs Funding Fee

Q. Am I excluded from the charge associated with VA funding?
A. The lender completes Form 26-8937 to certify the receipt of any disability payments. The form is then verified by the VA.

The certificate of eligibility (COE) may include information on the funding fee waiver status and the amount of monthly VA disability payments. Upon receipt of a COE indicating that the funding charge is "exempt," the lender will deduct the funding fee from the VA loan closing expenses.

Q. Is it possible to finance a VA funding fee?
A. The VA funding fee may be financed with the loan amount, and usually is.

Q. Am I required to pay a fee for VA funding?
A. Unless an application fulfills one of the funding fee exemptions, every veteran and other qualified applicant is obliged to pay the funding fee.

Q. Why is there a charge for VA funding?
A. The financing fee is used to sustain the Veterans Administration loan program and to compensate lenders for failed loans.