Understanding the VA funding fee is crucial for Nevada veterans. Learn exactly what it is, who pays it, who's exempt (including disabled veterans), how much it costs, and how it impacts your home purchase or refinance.
2.15%
Typical Fee
A one-time payment that helps sustain the VA loan program for future generations of veterans
The VA funding fee is a one-time charge paid by most veterans who use a VA home loan. It's a percentage of your total loan amount that goes directly to the Department of Veterans Affairs to help offset the cost of the program—allowing the VA to continue offering incredible benefits like $0 down payment and no PMI to future veterans.
Keeps the VA loan program running without taxpayer money
2.15% - 3.3% of the loan amount for most Nevada veterans
Can be financed into your loan or paid upfront at closing
Unlike FHA or conventional loans backed by private companies, the VA guarantees a portion of every VA loan directly. If a veteran defaults, the VA reimburses the lender for part of the loss. The funding fee helps the VA maintain reserves to cover these potential losses, ensuring the program remains self-sustaining and available to all eligible veterans—including you and future generations.
Think of it as a small contribution that makes the entire VA loan benefit possible—zero down payment, no mortgage insurance, competitive rates, and flexible credit standards.
Loan Amount
$400,000
First-Time VA User Funding Fee (2.15%)
$8,600
Financed Into Loan
$408,600
Monthly Cost (at 6.5% for 30 years)
~$54/month
Most Nevada veterans finance the fee into their loan, spreading the cost over 30 years rather than paying upfront at closing
Fee percentages vary based on loan type, down payment, and whether it's your first VA loan
First-Time Use (No Down Payment)
2.15%
Most common scenario for Nevada first-time VA users
First-Time Use (5%+ Down Payment)
1.50%
Lower fee with at least 5% down
First-Time Use (10%+ Down Payment)
1.25%
Lowest fee with 10% or more down
Subsequent Use (No Down Payment)
3.30%
For veterans using VA benefit a second (or more) time
Subsequent Use (5%+ Down)
1.50%
Reduced fee for repeat users with down payment
VA IRRRL (Streamline Refinance)
0.50%
Interest Rate Reduction Refinance Loan - lowest fee
Cash-Out Refinance (First Use)
2.15%
Taking cash from home equity
Cash-Out Refinance (Subsequent)
3.30%
Second or later cash-out refi
Nevada Refinance Opportunity
The VA IRRRL (streamline refi) has the lowest funding fee at just 0.50%. If Nevada rates drop, you can refinance your VA loan quickly with minimal cost.
| Loan Amount | First-Time (2.15%) | Subsequent (3.3%) | IRRRL (0.5%) |
|---|---|---|---|
| $300,000 | $6,450 | $9,900 | $1,500 |
| $400,000 | $8,600 | $13,200 | $2,000 |
| $500,000 | $10,750 | $16,500 | $2,500 |
| $600,000 | $12,900 | $19,800 | $3,000 |
All fees shown are for purchases/refinances with $0 down payment. Lower fees apply with 5%+ or 10%+ down.
Certain Nevada veterans are completely exempt from paying the VA funding fee
If you receive (or are entitled to receive) VA disability compensation for a service-connected disability, you pay $0 funding fee. This includes veterans with any disability rating from 0% to 100%.
Nevada Example:
If you're a disabled veteran buying a $425,000 home in Las Vegas, you save the $9,137 funding fee that a non-disabled veteran would pay. That's $9,137 saved instantly just by providing your VA disability documentation.
If you're the surviving spouse of a veteran who died in service or from a service-connected disability, and you're receiving Dependency and Indemnity Compensation (DIC), you are exempt from the funding fee on your VA loan.
Even if you haven't yet received your disability payments but have been approved/entitled to receive them, you still qualify for the exemption. Provide documentation of your approval and you won't pay the fee.
Veterans who received the Purple Heart medal are exempt from the VA funding fee as of 2020. If you were wounded in combat, you're entitled to this benefit.
To receive your funding fee exemption, provide your lender with proof of your disability status. This can be:
We make it easy: Our Nevada VA loan team knows exactly what documentation is needed and can help you obtain it if you don't have it readily available. Don't pay the funding fee if you qualify for an exemption—we'll ensure you get every dollar of savings you deserve.
Common questions Nevada veterans ask about the VA funding fee
Whether you're exempt from the funding fee or financing it into your loan, we'll help you maximize your VA benefits and save money on your Nevada home purchase.
See exactly how much the funding fee costs for different loan amounts and down payment scenarios across Nevada
Typical for first-time buyers in Pahrump, rural Nevada, or starter condos in Las Vegas
Complete exemption
Comparison: A conventional loan with 5% down would require ~$238/mo PMI. Over 5 years, that's $14,280 vs $6,450 funding fee (one-time).
Median home price in Las Vegas, Henderson, and Reno metro areas
Save $9,675 entirely
Nevada Average: Most veterans buying at this price point save $22,500 in down payment vs conventional. PMI would be ~$354/mo ($21,240 over 5 years) vs $9,675 one-time fee.
Summerlin, luxury condos downtown, premium Reno/Sparks neighborhoods
Save $13,975 entirely
High-end advantage: At this price, conventional would require $130K down (20%) or face $541/mo PMI. VA saves you $130K upfront or $32,460 in PMI over 5 years.
| Scenario | Down Payment | First Use | Subsequent Use | Disabled Vet |
|---|---|---|---|---|
| Zero Down Purchase | 0% | 2.15% | 3.30% | EXEMPT |
| 5% Down Purchase | 5% | 1.50% | 1.50% | EXEMPT |
| 10%+ Down Purchase | 10%+ | 1.25% | 1.25% | EXEMPT |
| Refinance (IRRRL) | N/A | 0.50% | 0.50% | EXEMPT |
| Cash-Out Refinance | N/A | 2.15% | 3.30% | EXEMPT |
| National Guard/Reserve | 0% | 2.15% | 3.30% | EXEMPT |
All funding fees can be financed into the loan amount. Disabled veterans include any VA disability rating (10%+) or Purple Heart recipients.
Even 5% down reduces the fee from 2.15% to 1.50%, saving ~$3,000 on a $450K loan. You still keep most of your cash vs conventional's 20% requirement.
Any VA disability rating exempts you from the funding fee entirely. Even a 10% rating saves thousands. File a claim if you haven't already – Nevada VA offices in Las Vegas and Reno can help.
If you've sold a previous VA-financed home and paid off the loan, restore your entitlement. This resets you to first-time use rate (2.15% vs 3.30%) for your next purchase.
VA allows up to 4% seller concessions toward closing costs. Ask the seller to contribute – they can cover your funding fee, reducing your out-of-pocket cash at closing significantly.
Yes, but most Nevada veterans finance it into the loan. Paying upfront saves interest over 30 years but requires more cash at closing. Most choose to finance and spread the cost.
No. If you're buying a $806,500 home in Las Vegas (Clark County limit), you can still finance the $17,340 funding fee on top without affecting your zero-down eligibility.
Generally no, but there's a partial refund if you refinance to a non-VA loan within the first year (rare scenario). If you sell and pay off the loan, you've paid the fee but can restore entitlement for next use.
Surviving spouses of veterans who died in service or from a service-connected disability are exempt from the funding fee. Other surviving spouses using VA benefits pay standard rates.