What is the VA funding fee?
A one-time fee paid to the VA on most VA loans that helps fund the program. It varies by first vs subsequent use, down-payment amount, and loan type (purchase, IRRRL, cash-out). Many disabled veterans and certain surviving spouses are exempt.
What this actually means.
The funding fee is a percentage of the loan amount, set by VA and published in a fee table. It can be paid in cash at closing or rolled into the loan amount (most common). First-use purchases at zero down generally pay a lower fee than subsequent-use purchases at zero down. IRRRL refinances pay a small fixed funding fee. Cash-out refinances pay a fee comparable to first/subsequent purchases. Confirm current percentages against the VA's published table.
What this looks like on a real file.
Where this can move.
First/subsequent use, down payment percentage, loan type (purchase, IRRRL, cash-out), and exemption status (disability, surviving spouse) drive the fee.
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Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.