SUBJECT: Updates to VA Funding Fee

DATE: February 23, 2023

VA published Circular 26-23-06 announcing Funding Fee reductions effective for loans with a NOTE date of April 7, 2023, and after.


  • The reduction is 0.15% except as noted below:
    • The reduction is .30% for subsequent users with less than 5% down on purchase transactions
    • The reduction is .30% for subsequent users on cash-out transactions
  • There is no change to existing fees/policy for:
    • Streamline refinance transactions where the funding fee remains at 0.50%
    • The eligibility of veterans who are considered exempt from paying the funding fee. REMN’s product guidelines contain a section dedicated to requirements for exemption of the funding fee