2026 VA funding fee chart
| Purchase / construction | First use | After first use |
|---|---|---|
| Less than 5% down | 2.15% | 3.30% |
| 5% to less than 10% down | 1.50% | 1.50% |
| 10% or more down | 1.25% | 1.25% |
| Refinance | First use | After first use |
|---|---|---|
| Cash-out refinance | 2.15% | 3.30% |
| IRRRL (rate reduction) | 0.50% | 0.50% |
Source: U.S. Department of Veterans Affairs.
Who doesn't pay it
- Veterans receiving VA disability compensation (or entitled to it but receiving retirement or active-duty pay instead).
- Active-duty members awarded the Purple Heart (with proof at or before closing).
- Eligible surviving spouses receiving Dependency and Indemnity Compensation (DIC).
- Service members with a proposed or memorandum disability rating issued before closing.
Your Certificate of Eligibility (COE) shows whether you're exempt. If you're awarded disability after closing with an effective date before closing, you may be able to request a refund from the VA.
How it's paid
Most buyers finance the fee into the loan, so it doesn't require cash at closing. On a $500,000 purchase with $0 down (first use), the fee is $10,750 — your loan becomes $510,750.
Why it exists
The funding fee helps keep the VA home loan program running for future service members. It's the reason VA loans don't charge monthly mortgage insurance.
Common questions
Is the VA funding fee refundable?
It can be if you're later awarded VA disability compensation with an effective date before your loan closed. Contact the VA with your award letter to request a refund.
Can the seller pay my VA funding fee?
Yes. Seller concessions (up to 4% of the price) can be used toward the funding fee.
Does the funding fee go down with a down payment?
Yes: 1.50% with 5% down and 1.25% with 10% or more down, whether it's your first use or not.
See your real numbers
Our free calculator uses 2026 pay tables, BAH by ZIP and VA residual income standards. About 2 minutes, no credit pull.
Educational information only, not a commitment to lend or a loan approval. VA guidelines and lender requirements change; your eligibility and terms depend on your full application, credit, income and VA entitlement.