The VA charges a Funding Fee to most veterans who obtain a VA mortgage loan to help sustain the VA home loan program. The VA Funding Fee is between 1.5% and 3.3% of the loan amount and varies depending on your military classification, whether or not you have obtained a VA loan before, and the amount of down payment you are making. Veterans receiving VA disability are exempt from paying this fee.

In most cases, the VA Funding Fee is financed rather than being paid in cash at closing