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The VA Funding Fee ranges from 2.15% to 3.3% of the loan amount on purchases and .5% to 3.3% of the loan amount on refinances. The following table breaks down how the VA Funding Fee is determined.
The Funding Fee. The VA loan falls into the category of a government-backed mortgage. If a VA lender processes and approves a VA loan and the loan eventually goes into default, the VA lender is partially compensated by the VA. But the VA needs money used to compensate VA lenders when VA loans go bad.