Methodology & funding-fee formula
BaseLoan = Price − DownPaymentFundingFee = BaseLoan × rate(purpose, first/subsequent use, down tier)TotalLoan = BaseLoan + (FundingFee if financed)PI = r × TotalLoan / (1 − (1 + r)^(−n)), with r = APR/12, n = 12×YearsTotalMonthly = PI + Tax/12 + Insurance/12 + HOAFAQ
Who is exempt from the VA funding fee?
Veterans with service-connected disability compensation, some active-duty recipients with Purple Heart, and eligible surviving spouses; lenders verify with VA.
Does financing the fee change P&I?
Yes—financing increases the total loan amount, raising P&I. Paying the fee upfront keeps P&I lower.