What are VA loan funding fees in Wisconsin?
Rob Miller explains the VA funding fee for Wisconsin veterans — how much it is, who is exempt, and how it compares to PMI on a conventional loan.
Rob Miller, Branch Manager at MadCity Home Loans, explains the one upfront cost most Wisconsin veterans don't know about with VA loans.
What are VA loan funding fees in Wisconsin?
The VA funding fee is a one-time fee paid to the Department of Veterans Affairs that helps keep the VA loan program self-sustaining. It's the trade-off for getting a zero-down, no-PMI loan — and it's almost always worth it.
How Much Is the Funding Fee?
Current rates (subject to change):
- First-time VA use, 0% down: 2.15% of the loan amount
- First-time VA use, 5–9.99% down: 1.50%
- First-time VA use, 10%+ down: 1.25%
- Subsequent VA use, 0% down: 3.30%
- Subsequent VA use, 5%+ down: 1.50% or 1.25%
On a $350,000 loan with first-time use, the funding fee is $7,525 — but it can be rolled into the loan so you pay nothing out of pocket at closing.
Who Is Exempt From the Funding Fee?
- Veterans receiving VA disability compensation
- Veterans who are rated eligible for disability compensation but receiving retirement or active duty pay instead
- Surviving spouses of veterans who died in service or from a service-connected disability
- Purple Heart recipients on active duty
Is It Worth It?
Almost always yes. A 2.15% one-time funding fee vs. paying PMI of ~0.6–1.2% every year? On a $350,000 loan, PMI can run $175–$350/month — meaning the funding fee pays for itself in 2–4 years, and you save thousands over the life of the loan.
Related Guide: See a full breakdown of VA benefits for Wisconsin veterans in our VA Benefits & Options Guide.