The VA loan is a lifelong benefit. As long as you have remaining entitlement from selling or repaying prior VA loans, you can continue to use the program.
A VA Certificate of Eligibility (COE) shows if a Veteran has remaining VA loan entitlement and how much entitlement is available. The COE also reflects a borrower's repeat homebuyer status and the VA loan funding fee amount they're required to pay.
That amount varies but typically increases from the first time a Veteran used their VA loan benefits.
The VA simplified the VA funding fee in recent years, basing the amount a Veteran pays on if they used a VA loan before and if they have a down payment instead of mixing in service type.
According to the VA, Veterans not exempt from paying the VA funding fee will pay a higher VA loan funding fee for the second time or subsequent use of the VA loan benefit.
No matter if you're active-duty, a Veteran or in the Gaurd or Reserves, subsequent users of the VA loan pay:
| Down Payment | Subsequent Use Funding Fee |
|---|---|
| No Down Payment | 3.3% |
| 5% Down Payment | 1.5% |
| 10% Down Payment | 1.25% |
Veterans interested in the VA's IRRRL or cash-out refinance products should know the cash-out follows similar protocols as a subsequent purchase, while the IRRRL comes with a significantly less funding fee. In these cases, the VA requires the following:
| Loan Type | Subsequent Use Funding Fee |
|---|---|
| IRRRL | 0.5% |
| Cash-Out Refinance | 3.3% |
You may be exempt from paying the VA funding fee, even if you paid the first time around. The VA recently added Purple Heart recipients to the list and has expanded disability benefits that may change your exemption status.
Veterans exempt from paying the fee typically include:
For other questions around the VA funding fee and if you're exempt, we've compiled the top 10 VA lenders by loan volume here. It's a great starting point when finding a lender who knows VA loans.
