# Understanding the VA Funding Fee for PA Veterans

By Edwin Santiago (@edwinsantiago) · Published 2026-11-06

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If you're a Veteran in the Philadelphia area asking whether you have to pay the VA funding fee, the direct answer is: maybe not — and the difference is worth thousands of dollars. The VA funding fee is a one-time charge on most VA loans that is generally due at closing but may be financed into the loan amount, and a large group of borrowers — including many disabled Veterans, Purple Heart recipients, and some surviving spouses — is completely exempt ([CrossCountry Mortgage](https://equityapp.crosscountrymortgage.com/content/va-funding-fee?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)). Whether you pay it, and how much you pay, depends on your disability rating, whether you've used a VA loan before, and your down payment. Here's exactly how it works and how to find out if you qualify for the waiver.

#### Key Takeaways

-   The VA funding fee is a one-time charge, not a monthly fee, and may be financed into the loan amount.
-   Veterans receiving VA compensation for a service-connected disability are fully exempt from the fee.
-   Purple Heart recipients on active duty and surviving spouses receiving DIC may also be waived.
-   The fee percentage rises with a smaller down payment and a second-time use of a VA loan.
-   Your Certificate of Eligibility (COE) usually shows your funding fee status — a loan officer can help verify it.

## What is the VA funding fee?

The VA funding fee is a one-time charge generally due at closing when you buy or refinance a home with a VA loan. Depending on the loan program, the fee may be financed into the loan amount rather than paid out of pocket. It isn't a monthly bill and it isn't mortgage insurance — instead, it helps sustain the VA loan program for future service members. That's the key reason it exists: every eligible borrower's fee keeps the program funded, so the next Veteran can use the same benefit.

Most VA loans carry this fee, and it's expressed as a percentage of your loan amount rather than a fixed dollar figure ([CrossCountry Mortgage](https://equityapp.crosscountrymortgage.com/content/va-funding-fee?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)). That means the more you borrow, the higher the fee in dollar terms. Whether a VA loan is the right fit for your budget depends on your individual loan scenario, your interest rate, and your closing costs — not on a one-size-fits-all comparison.

![VA home loan benefits — house keys and American flag](https://convex.voce.com/api/storage/899a79f4-4dd2-4ef5-9874-c8a4903a25b1)

## Who actually has to pay it?

Most VA loan borrowers pay the fee, but several groups are exempt. You're generally exempt if you **receive VA compensation for a service-connected disability**, if you're an active-duty Purple Heart recipient awarded the medal on or before closing, or if you're a surviving spouse receiving Dependency and Indemnity Compensation (DIC) ([CrossCountry Mortgage](https://equityapp.crosscountrymortgage.com/content/va-funding-fee?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)). The exemption can also apply to borrowers who are **entitled to disability compensation but receive retirement or active-duty pay instead**, and to those with an **eligible pre-discharge disability rating**. Because eligibility turns on your specific records, your loan officer should verify your status against your Certificate of Eligibility (COE) before you assume you owe the fee.

For borrowers who aren't exempt, the fee is most often simply part of the deal. A larger down payment can lower the rate, and a first-time use of the benefit is generally priced differently than a subsequent use. Whether the fee applies to you, and what it amounts to, depends on your individual situation — so confirming your status early is the practical first step.

?Frequently Asked Questions3 questions

1If I have a VA disability rating, do I automatically skip the fee?

Not necessarily. If you receive VA compensation for a service-connected disability, you're generally exempt from the funding fee. Active-duty Purple Heart recipients and some surviving spouses receiving DIC are also waived. Ask your loan officer to verify your status using your Certificate of Eligibility.

2How do I prove I'm exempt from the VA funding fee?

Your Certificate of Eligibility (COE) usually shows your funding fee status, since it reflects your service and any disability compensation you receive. Your loan officer can review it with you, and can request it from the VA if you don't have a copy.

3Can I get a refund if I already paid the funding fee?

In some cases, yes. If you receive a disability rating whose effective date falls before your loan closing date, you may qualify for a refund of a funding fee you already paid. This depends on your specific documentation and timing, so it's worth confirming with your lender.

## How much is the VA funding fee?

The funding fee is a percentage of your loan, and the exact rate depends on your down payment and whether you've used a VA loan before. The percentage isn't a fixed price — it falls as your down payment grows. Because the fee is typically due at closing, you'll usually see it itemized with your other closing costs. The dollar amount scales with the home price, since it's calculated against your loan amount.

You don't have to pay the funding fee out of pocket at closing in every case. In many situations, borrowers can **finance the funding fee into the loan amount**, which lowers your cash due upfront but increases your monthly payment over the life of the loan ([CrossCountry Mortgage](https://crosscountrymortgage.com/mortgage/loans/va-irrrl?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)). Whether financing the fee is permitted and makes sense for you depends on your loan program and individual underwriting.

## What about refinancing your VA loan?

The rules shift when you refinance. A **VA Interest Rate Reduction Refinance Loan (IRRRL)** — the streamlined refinance for borrowers who already have a VA loan — carries a lower funding fee than a purchase loan, and it may be waived for eligible Veterans with service-connected disabilities ([CrossCountry Mortgage](https://crosscountrymortgage.com/mortgage/loans/va-irrrl?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)). An IRRRL may not require a new appraisal or full income re-underwriting in some cases, but these requirements are not universally waived — they depend on the lender and your specific situation. Whether an IRRRL produces a better financial outcome depends on your current rate, remaining term, and closing costs, so it's worth reviewing your own numbers before refinancing.

A **VA cash-out refinance**, by contrast, typically carries the same kind of funding fee as a purchase loan without a down payment, which lands on the higher end of the range ([CrossCountry Mortgage](https://equityapp.crosscountrymortgage.com/content/va-funding-fee?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)). The fee is generally due at closing, but as with purchases, it may be financed into the new loan balance where your loan program permits.

_All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. CrossCountry Mortgage, LLC (“CrossCountry”) does not guarantee the quality, accuracy, completeness, or timeliness of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by CrossCountry. CrossCountry its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort, or other tortious action._

_Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC NMLS3029 (www.nmlsconsumeraccess.org)._

## What Philadelphia-area Veterans should do next

Before you shop for a home, confirm your exemption status — it changes how you plan your closing costs. The cleanest way is to review your **Certificate of Eligibility (COE)**, which usually indicates your funding fee status, and to verify any VA compensation you receive for a service-connected disability ([CrossCountry Mortgage](https://equityapp.crosscountrymortgage.com/content/va-funding-fee?utm_source=voce.com&utm_medium=referral&utm_campaign=voce_lo_pilot_2026)). If you don't have a COE, your loan officer can request it from the VA for you.

Once you know where you stand, get a **pre-approval** so you can make an informed offer in a competitive market. VA loans can allow up to 100% financing with no private mortgage insurance, and the seller may contribute a portion of your closing costs where your agreement permits. Whether this works for you depends on the price, the seller's position, and your underwriting — a pre-approval shows you exactly where you stand.

I'm Edwin Santiago, an originating branch manager and loan officer at CrossCountry Mortgage in Wayne, PA (NMLS #133618). I work with FHA, VA, and Conventional loans and can help you verify your Certificate of Eligibility, estimate whether the funding fee applies to your situation, and walk you through your options. Rates and terms are subject to change with market conditions, and any specific numbers depend on your credit profile and underwriting — so it pays to get an honest review of your own numbers before you commit. Schedule a rate consultation or pre-approval conversation to find out exactly where you stand.

_CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office. Certificate of Eligibility required for VA loans._