The full explanation
Only people who meet the VA's service requirements can use it; the lender will ask for your certificate of eligibility.
An example
Carlos served in the Army. With a VA loan he can buy his first home without saving for a down payment, as long as the price is not higher than the appraised value.
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 Loan Estimate, in the “Loan type” box (VA)
- State assistance programs that accept VA loans as the first mortgage
- Our mortgage calculator, in the VA loan option
