The VA funding fee is a one-time loan cost that many VA borrowers pay. Some borrowers are exempt. The fee depends on the type of loan and other factors, and financing it increases the loan balance.
Choose a clearly labeled purchase example. The fee is not every cost due at closing.
Explore a goal below. No contact information needed.
First use, less than 5% down
Hypothetical purchase: 2.15% of a $200,000 base loan is $4,300; financing it makes the balance $204,300.
Check this case
Assume a hypothetical $200,000 base purchase loan, first use of the benefit and less than 5% down. Confirm the fee category with the lender.
Understand the consequence
The 2.15% fee is $4,300. If it is financed, the example balance becomes $204,300 before any other applicable amounts.
Plan the next step
This is a static cost example, not a rate quote or loan approval. Ask about exemptions and the remaining cash needed; the fee is not all closing costs.
The feeAHypothetical purchase: 2.15% of a $200,000 base loan is $4,300; financing it makes the balance $204,300.Details +
The VA funding fee is a one-time loan cost that many VA borrowers pay. Some borrowers are exempt. The fee depends on the type of loan and other factors, and financing it increases the loan balance.
Other purchase costsBHypothetical purchase: 3.3% of a $200,000 base loan is $6,600; financing it makes the balance $206,600.Details +
The funding fee is $0 when the exemption applies; other purchase costs may still be due.
Can I Buy a Home With No Money Down?
Yes. Some homebuyers can purchase with $0 down.
What Repairs Does FHA Require Before Closing?
FHA requires a property that meets its condition standards. Problems affecting safety, security or soundness may need repair. Cosmetic wear alone does not mean every item must be fixed, and the appraisal is not a home inspection.
Will Shopping for a Mortgage Hurt My Credit?
A lender's credit check can affect your score, but credit scoring models generally group mortgage-shopping checks made close together. The shopping window depends on the scoring model; it is not a promise of no score change.
A few good questions
Is the VA funding fee monthly mortgage insurance?
No. It is a one-time fee that many VA borrowers pay. The fee category and any exemption must be confirmed.
Can I add the fee to the loan?
The funding fee can be financed, which increases the loan balance and interest costs. Ask how it affects the actual loan and other money due.
Does an exemption remove every closing cost?
No. A confirmed exemption can make the funding fee $0, but other purchase costs may still apply.
Do these examples apply to every VA loan?
No. They show purchase-loan cases with less than 5% down. Loan type, use history, down payment and exemption can change the fee. Do not apply these examples to an interest-rate-reduction refinance.
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