VA Funding Fee for Texas Vet and VA Loans

What Exactly is the VA Funding Fee?

The Texas Vet and VA Loan Funding Fee (VAFF) is probably one of the most misunderstood features of a VA loan. With that being said, the VA Guaranteed loan is considered by many as being the best loan program available today. Americas veterans and active-duty personnel can take advantage of this incredible benefit. We explain exactly what the VA Funding Fee is, how much it is, who pays it and who is exempt.

It's important to note that the proceeds from the VA Funding Fee are paid directly to the Department of Veterans Affairs and are used to help offset the losses to the Veteran's Administration for loans that go into default. This not only ensures that the VA Home Loan program can continue, it also reduces the cost to taxpayers. Borrowers can pay the fee upfront, or roll it into the loan.

Who Pays the Texas Vet or VA Funding Fee?

All veterans are required to pay the VA Funding Fee. However, veterans receiving disability compensation from the VA for service-related medical issues, or spouses of veterans who were killed in the line of duty are also exempt from the fee.

How Much is the Texas Vet or VA Funding Fee?

The following tables show the different percentages of the loan amount required to be paid up-front or financed into the loan, based on the loan type, the down payment made and your branch of service.

Blue Water Navy Vietnam Veterans Act of 2019 (the Act)

On June 25, 2019, the President signed the Act, Public Law 116-23, 133 Stat. 966. In accordance with the Act, including the provisions that impact VA’s Loan Guaranty Service (LGY), the law will become effective January 1, 2020.

* The enactment of Public Law 116-23, 133 Stat. 966 established funding fee rates at the levels in the following tables for loans closed on or after January 1, 2020, and before January 1, 2022.

Purchase and Construction Loans

Regular Military:


Down Payment Fee (First-time use) Fee (Subsequent use)
None 2.15% / *2.30% 3.30% / *3.60%
5% but less than 10% 1.50% / *1.65% 1.50% / *1.65%
10% or more 1.25% / *1.40% 1.25% / *1.40%

Purchase and Construction Loans

National Guard and Reserves:


Down Payment Fee (First-time use) Fee (Subsequent use)
None 2.40% / *2.30% 3.30% / *3.60%
5% but less than 10% 1.75% / *1.65% 1.75% / *1.65%
10% or more 1.50% / *1.40% 1.50% / *1.40%

Cash-Out Refinance Loans

Regular Military, National Guard and Reserves:

There are no reduced funding fees for regular refinances based on equity. Reduced fees only apply to purchase loans where a down payment of at least 5 percent is made.


Type of Veteran Fee (First-time use) Fee (Subsequent use)
Regular Military 2.15% / *2.30% 3.30% / *3.60%
Reserves/National Guard 2.40% / *2.30% 3.30% / *3.60%

Other Loan Types

Regular Military, National Guard and Reserves:

The higher subsequent use fee does not apply to the following types of loans if the Veteran's only prior use of entitlement was for a manufactured home loan.

Loan Type Fee (First-time use) Fee (Subsequent use)
IRRRL 0.50% 0.50%
Mobile Home 1.00% 1.00%
Assumptions 0.50% 0.50%

Get Started Today With Your VA Loan Request!

The VA Funding Fee is just one of the requirements of a VA Home Loan. If you would like to learn more about the prequalification process for a VA loan, please call our toll-free number at 866-704-2826 or take the next steps to prequalification by completing our quick-and-easy online form.

We welcome the opportunity to assist you.