The VA Funding Fee in Florida: What It Costs and Who Is Exempt
The VA funding fee Florida veterans pay ranges from 0.5% to 3.3%. Here is how the tiers work, who is exempt, and whether to finance it.
Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.
The VA funding fee Florida veterans pay is a one-time charge that keeps the VA loan program running without taxpayer subsidy. It replaces mortgage insurance.
It ranges from 0.5% on a streamline refinance to 3.3% on a subsequent-use purchase with no down payment. Our VA loan page covers where it fits.
How the tiers work
Two things set your rate: whether this is your first use of the benefit, and how much you put down.
First use with nothing down sits at 2.15%. Subsequent use with nothing down rises to 3.3%.
Putting 5% or 10% down reduces the fee at both tiers. Confirm current figures on the VA housing assistance page, since they are periodically revised.
Who pays nothing
Veterans receiving compensation for a service-connected disability are exempt entirely.
So are those entitled to compensation but receiving retirement or active-duty pay instead, and surviving spouses of veterans who died in service or from a service-connected disability.
The exemption is worth more than any rate shopping. If there is any chance you qualify, confirm it before closing.
Financing it or paying it
Most buyers roll the fee into the loan. On a $450,000 purchase at 2.15%, that adds roughly $9,675 to the balance.
Financing it costs interest over the life of the loan. Paying it in cash preserves the balance but raises what you bring to closing.
Run both on the VA loan calculator and compare against your other uses for that cash.
It is still usually the cheapest path
Even with the fee, a VA loan typically beats a low-down-payment conventional over any reasonable holding period, because there is no monthly mortgage insurance.
Against a 5% down conventional with PMI, the funding fee is often recovered in under three years.
If you already hold a VA loan and want a lower rate, the reduced 0.5% fee on a VA IRRRL makes it the cheapest refinance available. Start with a pre-approval.