Refinancing a Home
- VA Streamline Refinance IRRRL Program
- Documents needed for a VA Streamline Refinance IRRRL
- How to qualify for a VA Streamline Refinance IRRRL
- VA Streamline Funding Fee
- VA Loan Eligibility Guidelines
- VA Loan Certificate of Eligibility
- VA Streamline Refinance IRRRL Guidelines and Credit Requirements
- VA Cash Out Refinance Guidelines and Credit Requirements
- What are VA Entitlement Codes
- VA Funding Fee
- VA Loans Frequently Asked Questions
VA Funding Fee
What is the VA Funding Fee?
Most veterans must pay a funding fee to VA at loan closing. This fee is used to defray the cost of administering the VA home loan program. The VA Funding Fee,
if applicable, may be financed or paid in cash. The fee is imposed on both VA purchase loans and VA refinance loans (VA Streamline Refinance (IRRRL) or VA Cash Out Refinance)
Exemptions from the VA Funding Fee
The following individuals are exempt from the Funding Fee:
- Veterans that are receiving compensation for service connected VA disability
- Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay
- Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan)
- Veterans still on active awaiting discharge and who were rated eligible to receive compensation as a result of a pre-discharge disability examination and rating will be considered as receiving compensation as of that date; and
- Veterans entitled to receive VA compensation for service-connected disabilities, but who are not presently in receipt because they are on active duty.
Documentation must be provided to verify eligibility for exemption and a signed VA Form 26-8937, Verification of VA Benefit-Related Indebtedness, must be completed and reviewed for eligibility of exemption prior to closing.
What are the actual VA Funding Fees?
Lendia broke down the VA funding Fees by transaction type, use type and complied the chart below to help you understand what you VA Funding Fee will be.
| Type of Veteran | Down Payment | First Time User | Second Time User | Check Eligibility |
| Purchase | ||||
| Regular Military | 0% to 4.99% | 2.15% | 3.30% | Check Eligibility |
| 5% to 9.99% | 1.50% | 1.50% | Check Eligibility | |
| 10% or More | 1.25% | 1.25% | Check Eligibility | |
| Reserves National Guard | 0% to 4.99% | 2.49% | 3.30% | Check Eligibility |
| 5% to 9.99% | 1.75% | 1.75% | Check Eligibility | |
| 10% or More | 1.50% | 1.50% | Check Eligibility | |
| Cash Out Refinance | ||||
| Regular Military | N/A | 2.15% | 3.30% | Check Eligibility |
| Reserves National Guard | N/A | 2.40% | 3.30% | Check Eligibility |
| Other Programs | ||||
| IRRRR | N/A | .50% | .50% | Check Eligibility |
| Loan Assumption | N/A | .50% | .50% | Check Eligibility |