VA Funding Fee

VA home loan guarantees are issued to help eligible service members, veterans, reservists and certain unmarried surviving spouses obtain homes, condominiums, residential cooperative housing units, and to refinance loans.

A VA guaranty helps protect lenders from loss if the borrower fails to repay the loan.

The VA funding fee must be paid to VA unless the veteran is exempt from such a fee because he or she receives VA disability compensation, usually accompanied by a Service Connected VA Disability Rating of 10% or higher. The funding fee may be paid in cash or included in the loan.

The VA funding fee is currently set at 2.15% for first-time use, and 3.30% for any subsequent use. (Yes, a qualified veteran may use his VA and/or CalVet loan multiple times!)