By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed 2026-10-19. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015, and is not affiliated with the U.S. Department of Veterans Affairs.
Short answer: The VA funding fee is a one-time charge on most VA loans, calculated as a percentage of the loan amount. For a first-time VA purchase with less than 5% down it is 2.15%. For subsequent use with less than 5% down it is 3.3%, and an IRRRL is 0.5%. Veterans receiving VA disability compensation are exempt.
Rates effective April 7, 2023, still current per VA.gov (updated Oct 5, 2026):
Purchase and construction loans
| 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% |
Cash-out refinance: 2.15% first use, 3.3% after first use.
Other VA loans: IRRRL 0.5% · Loan assumption 0.5% · Manufactured home (not permanently affixed) 1% · Vendee 2.25% · NADL purchase 1.25%, refinance 0.5%.
You do not pay the fee if you receive (or are eligible for but receive retirement/active pay instead of) VA compensation for a service-connected disability. You are also exempt if you are a surviving spouse receiving DIC, have a proposed or memorandum rating before closing based on a pre-discharge claim, or are active duty and provide evidence of a Purple Heart on or before closing.
Example: a first-use, $0-down VA loan of $900,000 has a funding fee of 2.15%, which is $19,350. On a $1,300,000 VA jumbo it is $27,950. The fee is charged on the loan amount, not the price.
Yes. You can add it to your loan or pay it at closing. On a purchase, the funding fee is the only cost VA allows you to finance. Seller concessions (capped at 4% of reasonable value) can be used to pay it.
Yes, if you are later awarded VA disability compensation with an effective date retroactive to before your closing. Contact your VA regional loan center.
2.15% of the loan amount with less than 5% down, 1.5% with 5% or more down, and 1.25% with 10% or more down.
3.3% with less than 5% down. With 5% or more down it is 1.5%, and with 10% or more down it is 1.25%.
Yes. Veterans receiving, or eligible to receive, VA compensation for a service-connected disability do not pay the funding fee.
Yes. Seller concessions, which can cover the funding fee, are allowed up to 4% of the home’s reasonable value.
Talk to Steven: (858) 775-1005 · Free VA consultation · Apply now
Steven Hyde, NMLS #391380. Equal Housing Opportunity. Hyde Funding is not a government agency and is not affiliated with the VA. This is general information, not a loan commitment; terms depend on credit, income, property, and lender approval.