VA funding fee rates (VA.gov, in effect 2026)
The fee is a percentage of the loan amount, not the price. These are the rate charts on VA.gov (rate charts effective April 7, 2023; page updated September 22, 2026) for veterans, active-duty service members and National Guard and Reserve members:
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Other VA loans on the same page: cash-out refinance 2.15% (first use) or 3.3% (after first use), Interest Rate Reduction Refinance Loan 0.5%, loan assumption 0.5%. VA's own example: a first-time user buying a $200,000 home with $10,000 down pays 1.5% of the $190,000 loan, or $2,850.
How the payment is calculated
r is the annual rate divided by 12 and n the number of monthly payments. Property tax and insurance are divided by 12 and added with HOA dues. Because there is no monthly mortgage insurance, nothing else is added.
Worked example
A $400,000 home with nothing down on first use: the fee is 2.15% of $400,000, $8,600, so the loan is $408,600. At 6.25% for 30 years principal and interest is $2,515.82; with $4,800 a year in tax and $1,800 in insurance the payment is $3,065.82. Over the full term interest totals $497,095.
How this calculator works, in plain language
The VA doesn't lend the money; it guarantees part of the loan, so a lender can accept little or no down payment and charge no monthly mortgage insurance. In exchange most borrowers pay a one-time funding fee. The calculator takes your price and down payment, looks up the fee in VA's chart from your down payment and whether you have used the benefit before, adds the fee to the loan if you finance it, and works out the monthly payment the same way as any fixed-rate mortgage. Tax, insurance and HOA dues are added on top so you see the full amount the lender will qualify you on.
VA payments by scenario
Six common VA purchases at an example 6.25% for 30 years, funding fee financed, fee rates from VA.gov (checked October 2, 2026). Tax, insurance and HOA dues are left out so the loan costs compare directly.
| Scenario | Base loan | Fee rate | Funding fee | Loan with fee | P&I | Total interest |
|---|---|---|---|---|---|---|
| $300,000 home, 0% down, first use | $300,000 | 2.15% | $6,450 | $306,450 | $1,886.87 | $372,822 |
| $400,000 home, 0% down, first use | $400,000 | 2.15% | $8,600 | $408,600 | $2,515.82 | $497,095 |
| $400,000 home, 0% down, second use | $400,000 | 3.3% | $13,200 | $413,200 | $2,544.14 | $502,692 |
| $400,000 home, 5% down | $380,000 | 1.5% | $5,700 | $385,700 | $2,374.82 | $469,236 |
| $400,000 home, 10% down | $360,000 | 1.25% | $4,500 | $364,500 | $2,244.29 | $443,444 |
| $400,000 home, disability exempt | $400,000 | 0% | $0 | $400,000 | $2,462.87 | $486,633 |
Second use with nothing down costs $4,600 more in fee than first use on the same home. The exempt row shows what the fee adds to the payment: $52.95 a month on a $400,000 loan. On a $300,000 home the first-use fee is $6,450.
Common VA loan calculator mistakes
- Charging the fee on the price. VA charges it on the loan amount, so a down payment lowers it twice: a smaller rate tier and a smaller base.
- Using the first-use rate on a second loan. After first use the no-down-payment fee rises to 3.3%. Pick "after first use" above if you've had a VA loan before.
- Adding PMI. VA loans have no monthly mortgage insurance. A calculator that adds it overstates the payment.
- Forgetting tax and insurance. They often add hundreds a month and lenders count them. Enter them above, then check your mortgage DTI.
- Paying the fee when exempt. If you receive disability compensation, make sure your Certificate of Eligibility shows the exemption before closing.
VA rules to check with your lender
- Loan limits: with full entitlement there is no VA loan limit (VA.gov); the lender still decides how much you qualify for.
- Rate and closing costs: VA doesn't set your rate, points or most closing costs; compare several lenders.
- Refinancing later: a VA cash-out refinance has its own fee; test it with the cash-out refinance calculator.
This is an estimate for planning, not a loan offer. Your lender's Loan Estimate is final.