Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA loans

VA Loan Funding Fee Explained

Understand the VA loan funding fee, who pays it, exemptions for disabled veterans, and how it impacts your Nevada home purchase. Complete guide to VA funding fee percentages and strategies to minimize costs.

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What is the VA Loan Funding Fee?

The VA funding fee is a one-time payment that helps keep the VA loan program running for future veterans. Here's everything Nevada veterans need to know.

One-Time Payment

The VA funding fee is paid once at closing, not monthly. It can be rolled into your loan amount, so you don't need cash upfront to cover it.

2.15% to 3.3% of Loan

For first-time VA buyers with 0% down in Nevada, the funding fee is 2.15% of the loan amount. It increases for subsequent use or lower down payments.

Exemptions Available

Veterans receiving VA disability compensation, surviving spouses, and Purple Heart recipients are exempt from paying the VA funding fee entirely.

Easy to Calculate

On a $400,000 Nevada VA loan, a first-time buyer pays $8,600 in funding fees. This can be financed into your $408,600 total loan amount.

Lower with Down Payment

Put down 5% or 10%, and your VA funding fee drops to 1.5% or 1.25% respectively. This can save thousands on large Nevada home purchases.

Refinances Also Pay

VA refinances (IRRRLs and cash-out refis) also have funding fees, typically 2.15% to 3.3%. IRRRLs have a lower 0.5% fee for streamline refinancing.

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2025 VA Funding Fee Rates

Current VA funding fee percentages by loan type, down payment amount, and whether it's your first or subsequent VA loan use.

VA Purchase Loans

Down Payment First-Time Use Subsequent Use
0% to 4.99% down 2.15% 3.3%
5% to 9.99% down 1.5% 1.5%
10% or more down 1.25% 1.25%

VA Refinance Loans

Loan Type Funding Fee Rate Notes
IRRRL (Streamline Refi) 0.5% VA-to-VA refinance only
Cash-Out Refinance 2.15% - 3.3% Same as purchase rates

Nevada Example

On a $450,000 VA home loan in Las Vegas with 0% down (first-time use), your funding fee would be $9,675 (2.15%). This can be financed into your total loan of $459,675, resulting in approximately $52 added to your monthly payment over 30 years.

Who is Exempt from the VA Funding Fee?

Certain Nevada veterans and service members don't pay the VA funding fee. Here's who qualifies for an exemption.

VA Disability Recipients

Veterans receiving VA disability compensation (even 10%) are fully exempt from the funding fee. This saves $8,600+ on a typical Nevada home loan.

Purple Heart Recipients

Veterans who received the Purple Heart for injuries in service are completely exempt from paying the VA funding fee on any VA loan.

Surviving Spouses

Surviving spouses of service members who died in service or from a service-connected disability don't pay the funding fee when using VA loan benefits.

Pending Disability Claims

If you have a pending disability claim, you may need to pay the fee initially. Once approved, you can request a refund from the VA retroactively.

How to Claim Your Exemption

To claim your funding fee exemption, provide your VA disability rating letter or Purple Heart documentation to your Nevada VA lender during the application process. Your lender will verify the exemption with the VA.

Important: If you're approved for disability after closing, you can request a refund of the funding fee directly from the VA. The refund goes back up to 2 years from your disability effective date.

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VA Funding Fee FAQs

Common questions Nevada veterans ask about the VA loan funding fee.

Still Have Questions About VA Funding Fees?

Our Nevada VA loan specialists can walk you through the funding fee, exemptions, and how it affects your specific situation.

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