The VA funding fee explained: rates, examples and who is exempt
Current VA funding fee rates by down payment and first or subsequent use, worked examples on a $400,000 home, exemptions and financing the fee.
Category · 2 guides
Loan programs explained
FHA, VA, USDA, conventional and jumbo — the rules and fees behind the numbers, with sources.
FHA vs conventional: how MIP and PMI change the monthly payment
How FHA mortgage insurance (MIP) and conventional PMI are calculated, a side-by-side payment example on a $350,000 home, and when each wins.
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FAQ
Loan programs explained: quick answers
Still stuck? Ask the team — we reply within one business day.
Q.01How much is the VA funding fee for a first-time user with no down payment?
2.15% of the loan amount. On a $400,000 purchase with no down payment that is $8,600.
Q.02Does putting money down reduce the VA funding fee?
Yes. With 5% to under 10% down the fee falls to 1.5%, and with 10% or more it is 1.25%, for both first and subsequent use.
Q.03Is FHA MIP more expensive than PMI?
It depends on credit. For borrowers with strong credit, conventional PMI is often cheaper and can be removed sooner. For lower credit scores, PMI pricing rises steeply while FHA MIP stays the same, so FHA can be cheaper.
Q.04How much is FHA upfront MIP?
1.75% of the base loan amount. On a $337,750 base loan that is $5,910.63, which is usually financed into the loan.
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