The VA funding fee is currently set at 2.15% on a no down payment loan for a first-time use. This low amount is used to help first time buyers get into a home with a relatively low funding fee premium. The borrower is expected to use this opportunity to build up equity faster so if they use their eligibility a 2nd time then ideally they will have enough cash for a 5% down payment. The funding fee for second time users who do not make a down payment is 3.3%. But if you are able to put 5% down payment, you can get your funding fee reduced to 1.5%. If you are in a position to put 10% down payment, you have the lowest funding fee available, which is 1.25%*
If the veteran was in either the Reserves or National Guard, the first time users with no down payment requires a 2.4% fee. A 5% down payment requires a 1.75% fee. With 10% or more the VA requires a 1.5% fee.*

For subsequent use, no down payment requires a 3.3% funding fee. A 5% down payment requires a 1.75% fee, and 10% or more requires a 1.5% fee.*

On the streamline refinance program the funding fee is always reduced to 0.5%*. This low amount is another reason why the streamlined refinance (IRRRL) can be a very attractive to the veteran home owner.

The following persons are exempt from paying the funding fee:
Veterans receiving VA compensation for service related disabilities. Generally, if the veteran is 10% disabled or higher than they will qualify for an exemption.

Surviving spouses of veterans who died in service or from service related disabilities are exempt.

*Funding fees are set up Veteran's Administration. For more information on VA Funding Fees, visit www.homeloans.va.gov/docs/funding_fee_tables.doc Example: 360 monthly payments of $809.26 are based on principal and interest only, and an annual percentage rate (APR) of 5.068%. APR is subject to borrower qualification and subject to change. Third party fees may apply.