VA Funding Fee

A one time upfront payment called a VA Funding Fee is required to be paid to the VA at closing when obtaining a VA home loan. This funding fee goes directly to the VA to ensure the program keeps running for future generations of military homebuyers by removing any additional burdens off tax payers and veterans. The funding fee varies by transaction type (purchase or refinance) and by down payment amount (if any) and does not apply for veterans with service-connected disabilities.

The Funding Fee can be rolled into the loan (i.e. you can finance the funding fee) or can be paid separately (by borrower or with lender credit or seller credit (if it’s a purchase transaction)).

Lendia complied a few charts that show the Funding Fee amounts