Understanding VA Funding Fee Rates
The VA Funding Fee is a one-time charge paid by most service members, veterans, and surviving spouses when they obtain a VA-backed home loan. This fee helps to lower the cost of the loan for taxpayers because the VA does not require down payments or private mortgage insurance.
The funding fee rate can vary based on several factors, including your service type, the loan type, whether it's your first time using your VA loan benefit, and if you make a down payment. The Department of Veterans Affairs (VA) adjusts these rates periodically, so it's important to use an up-to-date calculator to determine the correct fee for your situation.
Key factors influencing the VA Funding Fee:
Service Type: Regular Military, National Guard, Reserve, Veteran, Surviving Spouse.Loan Type: Purchase, Refinance (Interest Rate Reduction Refinance Loan – IRRRL, Cash-Out Refinance).First-Time User Status: Whether this is your first VA loan or a subsequent one.Down Payment: The percentage of the home price paid upfront. A down payment of 5% or more can reduce the funding fee.
It's important to note that certain veterans are exempt from paying the VA Funding Fee, including those who are receiving or eligible to receive VA compensation for service-connected disabilities. Always verify your eligibility for exemption.
VA Funding Fee Calculator
Loan Amount:
Down Payment Percentage:
Service Type:
Regular Military
National Guard/Reserve
Veteran
Surviving Spouse
Loan Type:
Purchase
Refinance (Cash-Out)
IRRRL (Interest Rate Reduction Refinance Loan)
First-Time VA Loan User?
Yes
No
Calculate Funding Fee
function getBaseRate(serviceType, loanType, isFirstTimeUser) {
var rate = 0;
var isIRRRL = loanType === 'irrrl';
if (isIRRRL) {
return 0.005; // 0.5% for IRRRL
}
if (isFirstTimeUser === 'yes') {
if (serviceType === 'regularMilitary' || serviceType === 'veteran') {
rate = 0.0215; // 2.15% for first-time Regular Military/Veteran
} else if (serviceType === 'nationalGuardReserve') {
rate = 0.0315; // 3.15% for first-time Guard/Reserve
} else if (serviceType === 'survivingSpouse') {
rate = 0.0155; // 1.55% for first-time Surviving Spouse
}
} else { // Subsequent use
if (serviceType === 'regularMilitary' || serviceType === 'veteran') {
rate = 0.036; // 3.6% for subsequent Regular Military/Veteran
} else if (serviceType === 'nationalGuardReserve') {
rate = 0.046; // 4.6% for subsequent Guard/Reserve
} else if (serviceType === 'survivingSpouse') {
rate = 0.0155; // 1.55% for subsequent Surviving Spouse (same as first-time)
}
}
if (loanType === 'refinanceCashOut' && !isIRRRL) {
if (isFirstTimeUser === 'yes') {
rate = 0.0215; // 2.15% for first-time Cash-Out Refinance
} else {
rate = 0.036; // 3.6% for subsequent Cash-Out Refinance
}
}
return rate;
}
function calculateVAFundingFee() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var downPaymentPercentage = parseFloat(document.getElementById("downPaymentPercentage").value) / 100;
var serviceType = document.getElementById("serviceType").value;
var loanType = document.getElementById("loanType").value;
var isFirstTimeUser = document.getElementById("isFirstTimeUser").value;
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(loanAmount) || isNaN(downPaymentPercentage)) {
resultDiv.innerHTML = "Please enter valid numbers for Loan Amount and Down Payment Percentage.";
return;
}
if (downPaymentPercentage 1) {
resultDiv.innerHTML = "Down Payment Percentage must be between 0% and 100%.";
return;
}
var baseRate = getBaseRate(serviceType, loanType, isFirstTimeUser);
var fundingFeeAmount = 0;
var adjustedLoanAmount = loanAmount;
if (downPaymentPercentage >= 0.05) { // 5% down payment
if (loanType === 'purchase') {
if (isFirstTimeUser === 'yes') {
if (serviceType === 'regularMilitary' || serviceType === 'veteran') {
baseRate = 0.0175; // 1.75% for first-time with >=5% down
} else if (serviceType === 'nationalGuardReserve') {
baseRate = 0.0275; // 2.75% for first-time Guard/Reserve with >=5% down
}
// Surviving Spouse rate remains 1.55% regardless of down payment for first-time
} else { // Subsequent use
if (serviceType === 'regularMilitary' || serviceType === 'veteran') {
baseRate = 0.036; // 3.6% (no reduction for >=5% down in this tier)
} else if (serviceType === 'nationalGuardReserve') {
baseRate = 0.046; // 4.6% (no reduction for >=5% down in this tier)
}
// Surviving Spouse rate remains 1.55%
}
} else if (loanType === 'refinanceCashOut') {
// Cash-out refinance rates are not reduced by down payment in this tier
if (isFirstTimeUser === 'yes') {
baseRate = 0.0215; // 2.15%
} else {
baseRate = 0.036; // 3.6%
}
}
// IRRRL rates are fixed at 0.5% and not affected by down payment
}
// For IRRRL, the fee is calculated on the new loan amount, not the original
if (loanType === 'irrrl') {
adjustedLoanAmount = loanAmount; // Assuming loanAmount here is the new loan amount for IRRRL
}
fundingFeeAmount = adjustedLoanAmount * baseRate;
resultDiv.innerHTML = `
Calculated VA Funding Fee: $${fundingFeeAmount.toFixed(2)}
Note: This calculation is an estimate. Actual rates may vary. Certain veterans are exempt from the funding fee.
`;
}
.calculator-wrapper {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
margin-top: 20px;
border-radius: 8px;
background-color: #f9f9f9;
}
.calculator-wrapper h3 {
margin-top: 0;
color: #0056b3;
}
.input-row {
margin-bottom: 15px;
display: flex;
align-items: center;
}
.input-row label {
display: inline-block;
width: 200px;
margin-right: 10px;
font-weight: bold;
color: #333;
}
.input-row input[type="number"],
.input-row select {
padding: 8px;
border: 1px solid #ccc;
border-radius: 4px;
width: 150px;
box-sizing: border-box; /* Include padding and border in the element's total width and height */
}
.input-row input[type="number"] {
width: 148px; /* Slightly adjusted for border */
}
button {
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 5px;
cursor: pointer;
font-size: 16px;
margin-top: 10px;
}
button:hover {
background-color: #0056b3;
}
#result {
margin-top: 20px;
padding: 10px;
background-color: #e9ecef;
border: 1px solid #ced4da;
border-radius: 5px;
font-size: 1.1em;
color: #212529;
}
#result p {
margin: 5px 0;
}