VA Funding Fee (VA Funding Fee)
Direct definition
A one-time fee charged on most VA loans that funds the VA loan program.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
The fee varies by down payment, first-vs-subsequent use, and service type. It can be financed into the loan and is waived for eligible disabled veterans.
Why it matters
It's the trade-off for the VA's $0-down, no-mortgage-insurance benefit.
Where you may see it
- Loan Estimate
- Closing Disclosure
- VA loan disclosures
- Certificate of Eligibility
A real-world example
A first-use VA purchase with 0% down carries a funding fee of a small percentage of the loan, typically financed into the balance.
Educational and illustrative only
A common misunderstanding
It isn't mortgage insurance and doesn't recur monthly. It also isn't charged to every veteran — some are exempt due to disability status.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026