VA Funding Fee: How Much Is It In 2026? | Charts and Info
Most VA home loans require an upfront, one-time payment called the VA funding fee.
The amount of the fee depends on your loan’s size and type, your down payment, and whether you’ve used a VA-backed loan before. In addition, some borrowers don’t pay the fee because they receive VA disability compensation or meet another exemption.
VA home loan applicants can pay the fee in cash or roll the fee into their loan amount to reduce out-of-pocket expenses at loan closing.
The charts below show funding fee amounts for different borrowers.
Click here to check today's VA loan rates and see if you are eligible (Nov 4th, 2026)
VA funding fee charts
These rates apply to loans closed on or after April 7, 2023, and before June 9, 2034, so they are the rates in effect in 2026. Reserve and National Guard members pay the same rates as other veterans.
First-time use purchase & construction loans
| Down Payment | Veteran/Active Duty | Reservist/National Guard | Eligibility |
| Less than 5%* | 2.15% | 2.15% | Check Eligibility |
| 5% to 9.99% | 1.50% | 1.50% | Check Eligibility |
| 10% or more | 1.25% | 1.25% | Check Eligibility |
*Including cash-out refinance loans, which pay this rate regardless of equity
Subsequent use purchase & construction loans
| Down Payment | Veterans/Active Duty | Reservist/National Guard | Eligibility |
| Less than 5%* | 3.30% | 3.30% | Check Eligibility |
| 5% to 9.99% | 1.50% | 1.50% | Check Eligibility |
| 10% or more | 1.25% | 1.25% | Check Eligibility |
*Including cash-out refinance loans, which pay this rate regardless of equity
Click here to check your VA home loan eligibility (Nov 4th, 2026)
VA Streamline Refinance / IRRRL (Interest Rate Reduction Refinance Loan)
| Type of Loan | Veteran/Active Duty | Reservist/National Guard | Eligibility |
| First-time Use | 0.50% | 0.50% | Check Eligibility |
| Subsequent Use | 0.50% | 0.50% | Check Eligibility |
Request a free VA loan rate quote here (Nov 4th, 2026)
Other types of VA loans
| Type of Loan | Veteran/Active Duty | Reservist/National Guard | Eligibility |
| Loan Assumption | 0.50% | 0.50% | Check Eligibility |
| Manufactured Home (not permanently affixed) | 1.00% | 1.00% | Check Eligibility |
Funding fees vary widely, from 0% to 3.3% of the loan amount, depending on the veteran’s military service and type of loan. The charts above show the amounts for some of the major categories.
As you can see on the charts, several variables influence the size of a loan’s funding fee:
- Type of loan: A VA Streamline Refinance (IRRRL) requires a lower fee of 0.5%, and loan assumptions pay 0.5%, too. But VA cash-out refinancing charges the same fee as a purchase loan with less than 5% down.
- Previous use: Veterans and military members who have already used their VA loan entitlement pay higher fees for loans with down payments smaller than 5%.
- Down payment size: Making a down payment of at least 5% can lower your funding fee amount, even though the VA generally doesn’t require a down payment from borrowers with full entitlement.
- Service status: Some military service members and retirees can get the funding fee waived. For example, active duty Purple Heart recipients who show proof by closing, or veterans who receive VA compensation for a service-connected disability, can borrow without paying a funding fee.
Your lender will figure your funding fee amount. On most loans, your lender checks your exemption status on your Certificate of Eligibility (COE) from the VA.
Click here to request a VA loan rate quote (Nov 4th, 2026)
Why charge the VA funding fee?
The fee helps the Department of Veterans Affairs cover the cost of its loan program. It also lowers the cost of these loans for U.S. taxpayers, since the program doesn’t require down payments or monthly mortgage insurance.
Specifically, the funding fee helps cover the government’s cost of guaranteeing part of your mortgage loan. It’s the VA guaranty on your loan that lets private mortgage lenders give veterans and active duty service members loans with no down payments and no private mortgage insurance (PMI).
Plus, lenders offer competitive interest rates on VA-backed purchase loans.
Even with the fee included, a VA loan can cost less than a conventional loan or FHA loan, both of which require down payments.
Check today's VA loan rates. Click here (Nov 4th, 2026)
How do I pay the VA funding fee?
Eligible borrowers can pay their loan’s fee in a variety of ways:
- In cash: You can pay the funding fee upfront in cash, along with other closing costs. Say a first-time VA loan user who isn’t exempt buys a $300,000 home with 0% down. A 2.15% funding fee paid at closing would cost $6,450.
- Through the mortgage: Borrowers can roll the fee into their total loan amount, increasing the size of the mortgage loan. As a result, you’d pay interest on the fee over the life of the loan, and your mortgage payments will be slightly higher.
- Through seller concessions: Home sellers can pay the funding fee as a seller concession. The VA limits concessions to 4% of the home’s reasonable value, and that 4% could cover the funding fee. But keep in mind there are other closing costs to pay, too. Buyers should negotiate seller concessions before entering a contract to buy the home.
Friends or relatives could also help pay a borrower’s fee. If someone would like to help pay your fee, make sure your loan officer knows in advance. These kinds of gifts need to be properly documented.
VA funding fee exemptions
Borrowers generally pay, or finance, this fee to close their VA mortgages, but federal law exempts some borrowers.
Ask your lender about a funding fee exemption if you:
- Receive VA compensation for a service-connected disability
- Receive active duty or retirement pay instead of the VA disability compensation you’re eligible for
- Are the surviving spouse of a veteran and receive Dependency and Indemnity Compensation (DIC)
- Are on active duty and show proof of a Purple Heart on or before your closing date
A service member with a proposed or memorandum disability rating before closing is exempt as well. If you’re not sure about your status, be sure to ask your loan officer. Waiving the funding fee can make it even easier to become a homeowner.
VA funding fee FAQs
How much is the VA funding fee?
For a loan closed in 2026, the VA funding fee is 2.15% of the total loan amount for first-time VA loan users with no down payment. Repeat VA homebuyers (also known as subsequent use homebuyers) pay a fee of 3.3% for the same loan. Fees decrease when you can put 5% down or more. The fee for a VA Streamline Refinance is 0.5%.
How do I avoid the VA funding fee?
The funding fee is part of the VA loan program. The fee helps lower the cost of the VA home loan program for U.S. taxpayers. But you could finance the fee or ask the seller to help pay it. Federal law exempts veterans who receive disability compensation and active duty military members who show proof of a Purple Heart, among others.
What is the VA funding fee with 5% down?
With a 5% down payment, the funding fee goes down to 1.5% of the total loan amount for first-time and subsequent use purchase and construction loans.
How can I avoid closing costs with a VA loan?
All mortgage loans require closing costs. On a VA purchase loan, you can’t add them to the loan amount, because only the funding fee can be financed. However, some lenders will agree to pay your closing costs in exchange for a higher mortgage rate. In this case, buyers still pay closing costs, but they pay them gradually, with interest, instead of up front. You can also ask your home seller to cover your closing costs. The VA doesn’t limit seller credits for closing costs, but it limits seller concessions to 4% of the home’s reasonable value.
What is a VA funding fee?
The VA funding fee helps pay for the VA home loan program. Specifically, the fee is a one-time payment that helps offset the cost of the VA guaranty on your home loan. These loans can have no down payment, no mortgage insurance and, with full entitlement, no VA loan limit. The fee helps make it happen.
Is the VA funding fee tax-deductible?
It depends on the tax year. The IRS has treated the fee as mortgage insurance, and the deduction for mortgage insurance premiums returned in 2026 for borrowers who itemize instead of claiming the standard deduction. Previously, the deduction was not available for 2022 through 2025. It also shrinks when adjusted gross income is more than $100,000 ($50,000 if married filing separately), so ask a tax professional how it applies to you.
What is the funding fee for a VA loan?
The fee varies by loan size, loan type, down payment size, and whether the borrower has used a VA loan before. First-time VA loan users with no down payment pay 2.15% of their loan amount as a funding fee, unless they’re exempt.
What is the VA funding fee based on?
The VA funding fee is based on your total loan size rather than your home’s purchase price. If you were putting 5% down on a $200,000 home, your loan size would be $190,000 (because of your $10,000 down payment). So your funding fee would be 1.5% of $190,000, or $2,850, on a first use if you’re not exempt.
Who pays for which closing costs?
To protect VA homebuyers from excessive fees, the Department of Veterans Affairs has strict rules about closing costs. Since August 10, 2024, a temporary VA policy has let home buyers pay reasonable and customary Realtor commissions or broker fees for their own agent. This applies where the listing broker can’t set or pass along that pay. Buyers can’t add these charges to the loan amount, and sellers can still pay them.
Buyers can pay for a termite inspection when the VA Notice of Value requires one. On a purchase loan, they can’t pay more than 1% of the loan amount as the lender’s flat charge, which covers lender fees that aren’t on the VA’s itemized list. (Discount points are not included in this 1%.) Buyers or sellers can pay the allowed itemized charges, including the VA appraisal fee and title fees.
Can you add the VA funding fee to your loan amount?
Yes, it’s possible to roll the cost of the fee into your loan amount. Doing this avoids owing the fee upfront, but it increases your monthly payment since you’d be borrowing more to cover the fee.
What is the VA funding fee for manufactured homes?
The VA funding fee for a manufactured home that isn’t permanently affixed is 1% of the loan amount regardless of down payment size or whether you’ve used your VA loan entitlement before.
What is the VA funding fee for construction loans?
Construction loans charge the same funding fee as purchase loans: 2.15% for first-time use and 3.3% for subsequent use. Fees drop to 1.5% when borrowers put 5% to 9.9% down. The fee falls to 1.25% with 10% or more down.
Is the VA funding fee higher with a bad credit score?
No, credit scores do not affect funding fee amounts. But a lender’s credit score minimum, along with its review of your debt-to-income ratio and income, could affect whether you qualify and your loan size. In contrast, the VA itself sets no minimum credit score.
What is the VA funding fee for a refinance?
Cash-out refinancing requires the same funding fee as a new purchase loan or construction loan with less than 5% down: 2.15% for your first use and 3.3% for subsequent uses of the VA loan benefit. By contrast, Streamline Refinancing requires a funding fee of only 0.5%.
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