VA Funding Fee
The VA funding fee is a one-time payment paid by an eligible borrower on many VA-backed or VA direct home loans. The describes it as a mechanism that helps reduce taxpayer cost for the VA home loan program, which does not require down payments or monthly mortgage insurance.
- Where it applies
- Federal
- When it comes up
- Closing
- Property types
- Residential (VA-backed)
In practice
Funding-fee applicability can depend on borrower status and benefit eligibility; systems should treat it as an eligibility-driven closing fee, not a universal charge.
Related terms
VA-backed loanclosing costsmortgage insurance alternatives
Residential Financing
- Accrual Rate
- Adjustable Rate Mortgage (ARM)
- Amortization
- Application (TRID application)
- Conforming Loan Limit
- Pay Rate
- PMI Automatic Termination
- PMI Cancellation (Borrower-Requested)
- Private Mortgage Insurance (PMI)
- Secured Overnight Financing Rate (SOFR)
General information, not legal, tax or financial advice.