How this number is made
A VA loan can be nothing down. The funding fee is a percent of the amount borrowed and depends on down payment, service, and whether you have used the benefit before. The 2.15% default is a placeholder. Some borrowers are exempt. This page does not decide exemption.
- Type the fee from the quote, or zero if you are exempt.
- Financing the fee raises the loan and the payment. Paying it in cash does not.
Formula
Loan before the fee = price − down payment. Fee dollars = that loan × fee percent. If financed, the payment is computed on loan + fee. If paid in cash, the payment ignores the fee and the cash due includes it.
Worked example
With the figures already in the form, principal and interest is $2,515.82.
Questions
Is 2.15% the fee I will pay?
Not necessarily. Confirm the year’s funding-fee table and whether you are exempt. Disabled veterans and some surviving spouses often pay no fee.
Is there monthly mortgage insurance?
A VA loan does not use FHA-style monthly MIP. The funding fee is the insurance-like cost in this sketch.