VA is not a lender. It is a mortgage insurer. Because they charge no monthly mortgage insurance, they offset the risk of foreclosures by having all share in paying VA funding fees, unless the veteran is diagnosed as at least 10% disabled.
Below are the VA funding fees based on type of loan, type of veteran, down payment and eligibility usage.
| Type of Veteran | Down Payment | % – First Time Use | % – Subsequent Use |
| Reg. Military | None
5% – 9.99% 10% or more |
2.15%
1.50% 1.25% |
3.30%*
1.50% 1.25% |
| Reserves | None
5% – 9.99% 10% or more |
2.40%
1.75% 1.50% |
3.30%*
1.75% 1.50% |
* The higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan.
| Type of Veteran | % – First Time Use | % – Subsequent Use |
| Reg. Military | 2.15% | 3.3% |
| Reserves | 2.40% | 3.3% |
| Type of Loan | % – First time or subsequent use |
| IRRL (Streamline Refinance) | 0.50% |
| Manufactured Homes (Not perm. fixed) | 1.00% |
| Loan Assumptions | 0.50% |
