The Fee Is a Percentage — and It Can Be Financed

The VA funding fee is a one-time cost that keeps the VA loan program running without a down payment or monthly mortgage insurance. The rate depends on three things: whether this is your first or a subsequent use of the benefit, your service category, and your down payment. Most buyers simply add the fee to the loan, which keeps closing costs low — but financing a fee means paying interest on it for up to 30 years. On a $350,000 first-use loan at the standard 2.15% rate, the $7,525 fee costs roughly $48 a month when financed and about $9,600 in lifetime interest. Veterans with a 10% or higher VA disability rating are exempt from the fee entirely, so the calculator zeroes it out when that exemption is applied.