VA Funding Fees Reduced!

April 9th, 2023

New VA Funding Fees

VA Funding Fees have been reduced starting April 7th 2023 up until November 14th 2031. The above chart is now the accurate set of numbers to use going forward.

The fees used to be as follows:

2.3% if you had $0 down payment, and had never used your VA eligibility before.

3.3% if you had $0 down payment, and had used your VA eligibility before.

Now they are reduced to:

2.15% if you have $0 down payment, and have never used your VA eligibility before.

3.3% if you have $0 down payment, and have used your VA eligibility before.

The most frequently used VA loan is the no money down loan. With no down payment, if you had never used your VA eligibility before, the VA funding used to be 2.3%. Now in that same scenario it is reduced to 2.15%. So it has dropped .15%.

But the drop is even steeper if you have used your VA eligibility before, as you can see per the above.

FYI, the VA funding fee is usually financed into the new loan amount.

What is the VA Funding Fee for?

VA Funding Fees are like the FHA Mortgage Insurance Premium on FHA loans. It would also be like the Private Mortgage Insurance (PMI) on Conventional loans.

However, with PMI you do have the possibility to remove the PMI at some point in the future if you build up enough equity. That’s not the case for the VA funding fee.

However, it is important to note one thing. If the veteran has any sort of disability rating, then the VA funding fee would be waived.


For all of the details on the latest VA funding fees, click this link.

To contact me to discuss your VA loan, mortgage rates, or other mortgage questions, click here to schedule a call or you can email me directly.

Categories for this post:
Tags for this post: See all Tags

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

Leave a Reply