All veterans who have a pre approved VA guaranteed home loan have to pay VA loan funding fees on the closure of the loan amount. However, veterans receiving disability compensation, and surviving spouses of veterans who died while in service or sustained duty related disabilities, will get a VA loan funding fee exemption. A list of VA loan funding fee rates applicable to various categories of service members on VA loan closing is given below:
- All veterans, making use of their VA loan basic entitlement for the first time have to pay a funding fee of 2.15% on all VA loans with no down payment. Second time users of VA loan basic entitlement have to pay 3.3% of the loan amount with no down payments, as funding fees. First and second time applicants of VA loan will have to pay 1.5% as funding fees on loans applied, for down payment amounts ranging between 5% to 10%, while the funding fee rate for down payment amounts beyond 10% is fixed at 1.25%.
- For all members of the Reserves and National Guard, the funding fee to be paid is 2.4% on the loan amount taken for the first time with no down payments and 3.3% on the second loan. With down payments made between 5% and 10% of the loan, the funding fees to be paid is 1.75%, while beyond 10%, the rate is fixed at 1.5%.
- A funding fee of 0.5% is to be made on all Interest Rate Reduction Loans and 1% on manufactured home loans.
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