VA requirements

VA Loan Reader Questions: Funding Fees and Tax Deductions

November 16, 2018

VA Loan Reader Questions: Funding Fees and Tax Deductions

va loansA reader asks, “Can anyone tell me where I can find up-to-date information on the VA home loan funding fee and if it is tax deductible?”

The VA published some revised guidelines for VA loan funding fees in a letter all the way back in 2011, which addressed VA loan funding fees through September 2016.

That guidance is available as a downloadable PDF file through the VA’s website.

It’s important to note that this file, which contains the most recently updated VA loan funding fee guidelines (and is linked to from the main Funding Fee page) contains funding fee information for a specific set of dates from 2011 but also the most current VA loan funding fee information effective from November 22,, 2011 to September 30 2016.

We mention this here to help avoid confusion. It’s easy to glance at the VA loan funding fee chart and assume the first set of numbers are the ones currently in effect. This is not so: the current VA loan funding fee chart has two sections for each VA loan funding fee percentage–one for the now-expired VA loan funding fees in effect in 2011, and another for the VA loan funding fees good until 2016.

To address the second part of this reader question–whether or not a VA loan funding fee is considered tax deductible–it’s our policy not to give out tax advice related to VA home loans for two important reasons. One, we specialize in VA home loans and the issues around them, not taxes and tax deductions. Tax questions should be directed to a tax professional who knows the ins and outs of the tax system.

Two, tax laws change frequently and what was permitted yesterday may not be allowed tomorrow. Tax pros know all the latest rule changes and are the ones best equipped to handle these types of tax-related questions. You can also get tax information on the IRS’s official site.

For more information on VA loan funding fees, speak to a loan officer or contact the VA directly by calling 1-800 827-1000.

Do you have questions about VA loans? Ask us in the comments section.

  1. ed goldner

    Please clarify....I bought a home in 2013 using my VA loan benefit. Is the VA Funding Fee a tax deductible item in filing my taxes for 2013.??

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