VA Funding Fee

The VA Funding Fee is an upfront cost to the veteran for obtaining a VA loan.

For first-time users the fees are as follows:

2.30% for Down Payment <5%

1.65% for Down Payment of 5% to <10%

1.40% for Down Payment of 10% or more

2.30% for Cash-out Refinance

This fee is oftentimes rolled into the loan to avoid the veteran from needing to provide additional cash upfront.

Due to this fee, the VA loan may not be the best option for every veteran.  If you have a down payment, and/or are planning to refinance any time down the road, perhaps paying a funding fee every time you obtain new financing would not make sense.