The full explanation
It is a percentage of the loan amount that depends on the loan type, the down payment and whether you have used the benefit before. You can pay it at closing or add it to the loan. Among others, people who receive VA compensation for a service-connected disability do not pay it.
An example
Antonio, a Veteran, is buying his first home with a VA loan. On the VA's page he checks the fee chart for his loan type and decides to add it to the loan instead of paying it at closing.
With real numbers
Computed with official data for the whole U.S. In your county the numbers may differ.
- No down payment (2.15%)
- $7,153
- With 5% down (1.5%)
- $4,741
If you use your VA benefit for the first time to buy a $332,700 home, the typical U.S. value, with no down payment, the fee would be $7,153 (2.15% of the loan). With 5% or more down it drops to 1.5%. You can pay it at closing or add it to the loan.
Computed with: American Community Survey (ACS) 5-year estimates (2020–2024) · VA: VA funding fee and loan closing costs — purchase and construction loans (October 9, 2026)
You will see it in…
- The VA's page on the funding fee and closing costs
- The closing costs your lender shows you
- The percentage chart the VA publishes for each loan type
