If you’re using a VA loan to buy or refinance a home, here’s what you need to know about this one-time cost — and how to avoid it entirely.
If you’re a Veteran or active-duty service member buying a home with a VA loan, you may hear about something called the VA Funding Fee.
It’s a one-time cost that helps keep the VA loan program running — and while it’s not the most exciting part of buying a home, it’s something every VA buyer should understand.
Here’s what it is, what it covers, and how some buyers can get it waived completely.
What Is the VA Funding Fee?
The VA Funding Fee is a one-time fee charged by the Department of Veterans Affairs on most VA home loans. It allows the VA loan program to operate with no monthly mortgage insurance, which is a big benefit compared to other loan types.
How Much Is the Fee?
The amount of the fee depends on a few key factors:
| Situation | VA Funding Fee |
|---|---|
| First-time use, $0 down | 2.15% of loan amount |
| Second-time use, $0 down | 3.3% of loan amount |
| 5%–9.99% down payment | 1.5% |
| 10%+ down payment | 1.25% |
| VA IRRRL refinance (streamline) | 0.5% |
💡 Most Veterans roll the fee into the loan, which means no extra out-of-pocket cost at closing — but it does slightly increase the loan amount.
🚨 Good News: You Might Not Have to Pay It
You can waive the VA Funding Fee entirely if you meet certain eligibility criteria — and a lot of buyers don’t even realize they qualify.
✅ The fee is waived if:
- You have a VA disability rating of 10% or more
- You’re receiving VA compensation for a service-connected disability
- You’re eligible for compensation but receiving retirement or active-duty pay instead
- You are a surviving spouse of a Veteran who died in service or from a service-connected disability
This waiver can save you thousands depending on your loan size.
Not Sure If You Qualify?
We can check your Certificate of Eligibility (COE) and tell you in just a few minutes whether the fee applies — and how much it would be for the home you’re buying.
At Novum Home Loans, we’re here to make sure Veterans understand every part of the home loan process — no surprises, no confusion, just clear guidance.
📞 Call us at (918) 921-5272
🌐 Or click here to contact us now
Key Takeaway
The VA Funding Fee is part of what makes the VA loan program sustainable — but many buyers don’t have to pay it.
If you’re a Veteran with a disability rating or special eligibility, you could save thousands — and we’ll help you find out fast.
