COSTS OF OBTAINING A VA LOAN COSTS OF OBTAINING A VA LOAN Funding Fee A basic funding fee of 2.0 percent must be paid to VA by all but certain exempt veterans. A down payment of 5 percent or more will reduce the fee to 1.5 percent and a 10 percent downpayment will reduce it to 1.25 percent. A funding fee of 2.75 percent must be paid by all eligible Reserve/National Guard individuals. A down payment of 5 percent or more will reduce the fee to 2.25 percent and a 10 percent downpayment will reduce it to 2.0 percent. The funding fee for loans to refinance an existing VA home loan with a new VA home loan to lower the existing interest rate is 0.5 percent. Veterans who are using entitlement for a second or subsequent time who do not make a downpayment of at least 5 percent are charged a funding fee of 3 percent. NOTE: For all VA home loans, the funding fee may be paid in cash or it may be included in the loan. A real estate agent can help save you time and effort in your search for the right home. Real estate professionals have access to home buying tools and experience that the average home buyer doesn't have. The real estate agent's role is to guide you through the home buying process and help you find the home that best suits your needs and price range. Real estate agents aren't necessary in every real estate transaction, but they can help you: Understand the paperwork and legal requirements Find the neighborhood for your lifestyle Find the home that meets your needs Search property values in your area Negotiate the final offer Coordinate the closing process