Editor’s Note: This article is up to date as of October of 2024.
Looking to purchase a home using a VA loan? Early in 2023, the VA made a scheduled change to VA funding fee rates. These fees apply to loans closed on or after April 7, 2023 and prior to November 14, 2031.
The funding fee percentages for VA home loans, including construction loans and refinances, was decreased. This is good news for home buyers looking to finance purchases through VA home loans!
VA Loan Fees for Loans Closing On or After April 7, 2023
The new VA loan fee rates apply to loans closing on or after April 7, 2023 and prior to November 14, 2031. They are as follows:
| Down Payment Amount | Funding Fee Percentage | |
|---|---|---|
| First Use | Less than 5% | 2.15% |
| 5% or more | 1.5% | |
| 10% or more | 1.25% | |
| Subsequent Use | Less than 5% | 3.3% |
| 5% or more | 1.5% | |
| 10% or more | 1.25% |
| Funding Fee Percentage | |
|---|---|
| First Use | 2.15% |
| Subsequent Use | 3.3% |
| Loan Type | Funding Fee Percentage |
|---|---|
| Interest Rate Reduction Refinance Loan (IRRRLs) | 0.5% |
| Manufactured Home Loans (not permanently affixed) | 1% |
| Loan Assumptions | 0.5% |
| Native American Direct Loan (Non-IRRRL) | 1.25% |
Those who qualify for VA Disability are exempt from the VA funding fees.
VA Loan Fees for Loans Closed Before April 7, 2023
The previous VA loan fee rates applied loans that closed before April 7, 2023. These fees are detailed in the charts below:
| Down Payment Amount | Funding Fee Percentage | |
|---|---|---|
| First Use | Less than 5% | 2.3% |
| 5% or more | 1.65% | |
| 10% or more | 1.4% | |
| Subsequent Use | Less than 5% | 3.6% |
| 5% or more | 1.65% | |
| 10% or more | 1.4% |
| Funding Fee Percentage | |
|---|---|
| First Use | 2.3% |
| Subsequent Use | 3.6% |
| Loan Type | Funding Fee Percentage |
|---|---|
| Interest Rate Reduction Refinance Loan (IRRRLs) | 0.5% |
| Manufactured Home Loans (not permanently affixed) | 1% |
| Loan Assumptions | 0.5% |
| Native American Direct Loan (Non-IRRRL) | 1.25% |
Thinking About Purchasing a Home with a VA Loan?
If you’re in the market for a new home and you’re considering a VA mortgage to finance your purchase, get in touch with us today! As a mortgage broker, we can help connect you with home financing options that align with your needs and qualifications – and, given our CVLS certification, our team is uniquely qualified to work with veterans.
We can help you understand the ins and outs of the mortgage process, and assist you every step of the way as you pursue a VA home loan.
Give us a call today at 518-782-1202 or contact us online to get the conversation and home loan process started.
Interested in learning more about VA home loans?
The following resources are a great place to start:
Guide to VA Mortgages: Find the answers to frequently asked questions, learn about qualification requirements, and find recent updates related to VA home loans here.
New York VA Mortgages: Find details about the benefits of VA home loans and learn about the basic steps involved in obtaining one here.
VA Home Loan FAQs: Find answers to frequently asked questions about VA home mortgages.
