First use vs subsequent use
For purchase loans, the fee percentage is generally higher for subsequent use than first use when the down payment is under 5%.
How a down payment affects it
A larger down payment can lower the fee percentage on a purchase loan. The VA chart shows the exact tiers.
Possible exemptions
You may not have to pay the fee if, for example, you receive VA compensation for a service-connected disability, you're a surviving spouse receiving Dependency and Indemnity Compensation, or you're an active-duty Purple Heart recipient. Exemption status is shown on your COE, which is why it matters to check early. The VA lists every exemption.
Financing the fee
The funding fee can often be financed into the loan instead of paid at closing. Financing it increases your loan amount and the interest you pay over time.
What Eileen can help with
- Checking whether your COE shows a funding fee exemption
- Comparing paying the fee at closing vs financing it
- Showing how the fee affects your estimated payment
Frequently asked questions
- What is the current VA funding fee?
- Check the official VA funding fee chart on VA.gov for current rates and effective dates. Eileen can confirm what applies to your loan.
- Can I get a refund if my exemption is approved later?
- In some cases the VA may refund the fee if exemption is confirmed after closing. Contact the VA about your situation.