2023 VA Funding Fees

The funding fee for VA mortgages for 2023 have been announced. Great news – the fees for 2023 have been reduced from 2022!

The VA Funding Fee is a one-time charge often added to the loan amount and financed over the term of the mortgage. VA mortgages do not have monthly mortgage insurance premiums (unlike FHA mortgages).

Here are the VA Funding Fees for 2023:

VA Purchase or Construction Loans – First Use:

• Down payment less than 5%: 2.15%
• Down payment 5% or more: 1.5%
• Down payment 10% or more: 1.25%

VA Purchase or Construction Loans – Subsequent Use:

• Down payment less than 5%: 3.3%
• Down payment 5% or more: 1.5%
• Down payment 10% or more: 1.25%

VA Cash-Out Refinance

• First Use: 2.15%
• Subsequent Use: 3.3%

Other VA Home Loan Types

• Interest Rate Reduction Refinance Loan (IRRL): 0.5%
• Manufactured Home Loans (not permanently affixed): 1%
• Loan Assumptions: 0.5%
• Native American Direct Loan (Non-IRRL): 1.25%

Some Veterans do not have to pay a VA funding fee if:

• They are receiving VA compensation for a service-connected disability, or
• They are eligible to receive VA compensation for a service-connected disability, but are receiving retirement or active-duty pay instead, or
• They are receiving Dependency and Indemnity Compensation as the surviving spouse of a Veteran, or
• They are a service member who has received a proposed or memorandum rating before the loan closing date that says they are eligible to get compensation because of a pre-discharge claim, or
• They are a service member on active duty who, before or on the loan closing date, provides evidence of having received the Purple Heart.

VA home loans are an excellent mortgage program with competitive rates, low to no-down payment and no monthly mortgage insurance for Veterans who have earned this benefit.

Thank you to our Veterans for your service!