Funding Fee
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A funding fee is a one-time charge on VA and USDA loans that helps sustain the programs in place of monthly mortgage insurance.
What Funding Fee means
On VA loans the fee ranges roughly 1.25%–3.3% of the loan, depending on down payment and prior use, and can be financed. Disabled veterans are usually exempt.
Florida example
A Florida veteran using a VA loan for the first time with no down payment pays a 2.15% funding fee, about $7,525 on a $350,000 loan, which can be rolled into the balance instead of paid in cash.
A one-time loan fee
A funding fee is a one-time charge on certain government loans, most notably VA loans. It helps keep the program running so future borrowers can benefit too.
On a VA loan it usually ranges from about 1.25% to 3.3% of the loan amount and can be rolled in.
Who pays less or nothing
First-time VA users pay less than repeat users. Veterans receiving VA disability compensation are exempt entirely, which saves thousands.
We check your exact fee and any exemption. Reach out and we will confirm what you owe.
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