VA funding fee

Last modified July 10, 2023

This is similar to FHA's UFMIP, and is an insurance premium paid on a loan obtained by a veteran or qualified reservist to guarantee a portion of the loan in the event that the borrower defaults. Unlike the MIP, the funding fee decreases as the veteran puts more money down, but it does not totally disappear. Also, the funding fee may be financed. Typically, the funding fee increases each time you use a VA Loan. The Funding Fee is waived if the veteran was disabled during their service period.