VA Funding Fee
VA does not charge monthly mortgage insurance, but many borrowers pay a one-time VA funding fee unless exempt.
Purchase funding fee
The purchase funding fee varies by first/subsequent use and down payment. The current VA fee schedule should be checked for the exact percentage before quoting a loan.
Cash-out refinance
Current VA funding-fee rates for cash-out refinance are 2.15% for first use and 3.3% after first use.
IRRRL and assumptions
The current VA funding fee is 0.5% for IRRRLs and 0.5% for loan assumptions unless an exemption applies.
Exemptions and refunds
Certain Veterans, Servicemembers and surviving spouses are exempt. A borrower may also qualify for a refund if a disability-compensation award is later made retroactive to before closing.
Official VA baseline
VA Home Loans · VA Pamphlet 26-7 Lender's Handbook
VA sets the guaranty program rules, while private lenders underwrite and may impose overlays that are stricter than VA's baseline.