VA loans require no down payment or mortgage insurance. To help offset the costs to the taxpayers, VA borrowers may pay a VA funding fee.
For a no down payment loan, the VA funding fee is currently 2.30% of the loan amount for first-time buyers. For veterans that use this benefit for a zero down mortgage a second time, the fee increases to 3.60% of the loan amount. Below are the most recent VA funding fee rates based on the purpose of your loan, your down payment, and whether you’re a first-time or repeat VA home loan benefits user:
| Type of loan | Down payment | First-time user | Subsequent user |
| Purchase and construction | 0% | 2.30% | 3.60% |
| Purchase and construction | 5% or more | 1.65% | 1.65% |
| Purchase and construction | 10% or more | 1.40% | 1.40% |
| Cash-out and regular refinance | 90% maximum loan-to-value (LTV) ratio | 2.30% | 3.60% |
| Interest rate reduction refinance loan (IRRRL) | No equity required | 0.5% | 0.5% |
Veterans with a service-connected disability may be exempt from paying the funding fee.
