How this number is made
VA loans skip monthly mortgage insurance and charge a funding fee instead. The percent depends on down payment, whether you have used a VA loan before, and whether you are exempt. Type the percent from the VA table that fits. The default is a common first-use figure and may not be yours.
- Look up the fee for your down payment and your use of the benefit.
- If you have a disability exemption, the percent is zero.
Formula
Fee = loan × percent. Financed amount = loan + fee, if you roll it in.
Worked example
With the figures already in the form, funding fee is $6,880.
Questions
Is the default current?
Treat it as a placeholder. The VA publishes the table. A second use, or a different down payment, is a different percent.
Does the fee raise the payment?
Only the part you finance. Paying it in cash leaves the loan, and the principal-and-interest payment, unchanged.