The VA loan has big perks: zero down for most eligible borrowers and no monthly mortgage insurance. In return, most borrowers pay a one time fee called the VA funding fee.
How much is the VA funding fee? It depends on your loan type, your down payment, and whether this is your first time using the benefit. This guide shows the full VA funding fee chart for 2026, who is exempt, and smart ways to lower what you pay.
All rates below come from the Department of Veterans Affairs. We checked them on VA.gov in October 2026.
What is the VA funding fee?
The VA funding fee is a one time payment that a veteran, service member, or surviving spouse makes on a VA backed home loan. It helps lower the cost of the program for taxpayers, since VA loans do not require a down payment or monthly mortgage insurance.
It is not the same as private mortgage insurance. PMI is a monthly cost that keeps going. The funding fee is paid once, and you can roll it into your loan.
VA funding fee chart 2026
The VA set the current rates on April 7, 2023, so the VA funding fee chart for 2025 and 2026 is the same. The fee is a percentage of your loan amount, not the purchase price of the home.
Purchase and construction loans
Down payment | First use | After first use |
Less than 5% | 2.15% | 3.3% |
5% or more | 1.5% | 1.5% |
10% or more | 1.25% | 1.25% |
These rates apply to veterans, active duty service members, and National Guard and Reserve members.
If you used a VA loan in the past to buy only a manufactured home, you still pay the first time rate.
Cash out refinance loans
First use | After first use |
2.15% | 3.3% |
The rate does not change with your down payment.
Other VA loan types
Loan type | Funding fee |
Interest rate reduction refinance loan (IRRRL) | 0.5% |
Loan assumption | 0.5% |
Manufactured home loan (not permanently affixed) | 1% |
Native American Direct Loan, purchase | 1.25% |
Native American Direct Loan, refinance | 0.5% |
Vendee loan, for buying VA owned property | 2.25% |
How much is the VA funding fee? A simple example
Say you buy a $400,000 home and this is your first time using your VA loan.
Down payment | Loan amount | Funding fee |
$0 | $400,000 | $8,600 (2.15%) |
$20,000 (5%) | $380,000 | $5,700 (1.5%) |
$40,000 (10%) | $360,000 | $4,500 (1.25%) |
If you have used your VA loan before and put nothing down, the fee is 3.3%. On the same loan, that is $13,200.
Your lender will give you the exact number on your Loan Estimate.
Calculate your VA funding fee
Use our calculator to estimate your fee based on your loan type, your down payment, and your service history. Then talk to our team about your options.
- Base loan amount
- $0
- Total loan if you finance the fee
- $0
- Cash for the fee if you pay at closing
- $0
How your down payment changes the fee
Same home price and service history, different down payments.
| Down payment | Loan amount | Rate | Funding fee |
|---|
This is an estimate based on the VA funding fee rates effective April 7, 2023, as published on VA.gov. Your lender calculates your final fee. Exemptions and refunds depend on your VA status.
Who is exempt from the VA funding fee?
You do not pay the funding fee if any of these apply to you:
- You receive VA compensation for a service connected disability.
- You are eligible for that compensation but receive retirement or active duty pay instead.
- You are a surviving spouse who receives Dependency and Indemnity Compensation (DIC).
- You are a service member with a proposed or memorandum rating, before your loan closing date, that says you are eligible for compensation based on a pre discharge claim.
- You are an active duty member who provides proof of a Purple Heart on or before your closing date.
If you think you may qualify, tell your lender early so it can confirm your status. Read more in our guide to VA funding fee exemptions for disabled veterans.
Can you get a refund?
Maybe. If the VA later awards you compensation for a service connected disability, and the effective date is before your loan closing date, you may be eligible for a refund of the fee.
A proposed or memorandum rating you receive after closing does not qualify for a refund. If you think you qualify, call your VA regional loan center. VA.gov explains the refund rules.
How do you pay the VA funding fee?
You have two choices:
- Finance it. The fee is added to your loan and you pay it off over time. You will pay interest on it.
- Pay it at closing. You pay the full amount in cash with your other closing costs.
On a purchase loan, the funding fee is the only cost you can roll into the loan. All other closing costs must be paid when you close. See our guide to VA loan closing costs.
How to lower or avoid the VA funding fee
You cannot negotiate the fee itself. But you can often reduce it. Here is how.
- Check your exemption. If you receive VA compensation for a service connected disability, you may pay nothing.
- Put money down. Moving from less than 5% down to 5% down cuts a first time fee from 2.15% to 1.5%. At 10% down it drops to 1.25%. Learn more in Does a VA Loan Require a Down Payment?
- Ask the seller or builder to pay it. The VA allows credits for the funding fee. These count toward the 4% limit on seller concessions. Read our guide to VA loan seller concessions.
- Use an IRRRL if you refinance. The streamlined refinance has one of the lowest fees, at 0.5%.
- Choose your payment method. If you can pay the fee at closing, you will not pay interest on it. If cash is tight, financing may be the better move.
Is the VA funding fee worth it?
For most veterans, yes. Think about what you get in return:
- Zero down for most eligible borrowers
- No monthly private mortgage insurance
- A loan backed by the VA
Even with the fee, many veterans come out ahead compared to a loan with a down payment and monthly mortgage insurance. Ask your lender to show you both options side by side, including the total cost over the years you plan to stay.
VA funding fee on new construction
Buying a new build? Builders often offer to pay closing costs, and the VA allows builder credits for the funding fee. Remember that a paid funding fee counts toward the 4% limit on concessions. See how it works in Builder Incentives Explained and Can You Use a VA Loan for New Construction?
Frequently asked questions
For a first time purchase loan with less than 5% down, it is 2.15% of the loan amount. The rate drops to 1.5% with 5% down and 1.25% with 10% down. Veterans who have used the benefit before pay 3.3% with less than 5% down.
Yes. You can finance the fee or pay it at closing. It is the only closing cost you can roll into a VA purchase loan.
Veterans who receive VA compensation for a service connected disability are exempt. Certain surviving spouses, Purple Heart recipients on active duty, and others are also exempt. Check the full list above.
Possibly. If the VA awards you compensation with an effective date before your loan closing date, you may qualify for a refund.
On purchase and construction loans, yes. A larger down payment lowers the fee. Refinance loans and some other loan types do not change with the down payment.
No. Mortgage insurance is a monthly cost. The funding fee is a one time charge, and VA loans do not have monthly mortgage insurance.
Ready to use your VA loan?
Get help understanding your funding fee and your full loan costs. Talk to the Gladden Global Network team, a veteran owned agency serving Maryland, DC, and Virginia. Contact us today or call (410) 204-4070, and join our military and veteran community.
