VA Funding Fee Chart 2026: Rates, Exemptions & How to Calculate

What the funding fee is

The VA funding fee is a one-time, upfront charge paid at closing on most VA loans. It funds the VA guaranty, which is what makes the no-down-payment loan possible and lets lenders offer favorable terms. Because the guaranty replaces private mortgage insurance, the VA funding fee is paid once, up front, rather than every month for the life of the loan.

The fee can be paid in cash at closing or financed into the loan amount. Financing it spreads the cost over the term but adds interest, so the choice is a tradeoff between cash to close and monthly payment. The funding fee is separate from closing costs, which are explained in our VA loan closing costs guide.

The 2026 funding fee schedule

The VA sets the funding fee, and the schedule below reflects the rates in effect as of early 2026. Funding fee rates can change by law, so confirm the current rate with your lender or on the VA's official site before you plan your cash to close. For purchase and construction loans, the fee depends on whether it is your first use of the VA benefit and on your down payment.

Purchase and construction, first use: 2.15% of the loan amount with less than 5% down; 1.50% with 5% to less than 10% down; and 1.25% with 10% or more down. Purchase and construction, subsequent use (you have used the VA benefit before): 3.30% with less than 5% down; 1.50% with 5% to less than 10% down; and 1.25% with 10% or more down.

IRRRL (streamline) refinance: 0.50% of the loan amount. VA cash-out refinance: 2.15% first use and 3.30% subsequent use, the same tiers as purchase. Manufactured homes and the Native American Direct Loan have their own schedules; verify those with the lender if they apply to your file. Use the calculator below to apply the right rate to your loan amount.

Who is exempt from the funding fee

Veterans who are receiving VA compensation for a service-connected disability rated 10% or more are exempt from the funding fee. Surviving spouses of veterans who died in service or from a service-connected disability, and certain surviving spouses of veterans rated totally disabled at the time of death, are also exempt. For these borrowers, the fee is simply not charged.

Active-duty service members are not automatically exempt. The exemption attaches to a disability rating or surviving-spouse status, not to current service, so an active-duty member who is later rated disabled would have paid the fee at closing and can seek a refund once the rating is awarded.

How down payment changes the fee

Because the fee is a percentage of the loan amount, putting money down lowers the fee twice: the percentage itself drops at the 5% and 10% thresholds, and the loan amount it applies to is smaller. On a $400,000 first-use purchase with nothing down, the 2.15% fee is $8,600. Put 5% down and the loan is $380,000 at 1.50%, which is $5,700. Put 10% down and the loan is $360,000 at 1.25%, which is $4,500.

That is why some borrowers choose to put money down even though the VA requires none. The savings on the funding fee can outweigh keeping that cash, and the lower loan amount reduces the monthly payment. Whether it is worth it depends on your cash position and how long you plan to keep the loan, which the discount points guide explores from the rate side.

Rolling the fee into the loan

Financing the funding fee is common because it preserves cash for closing costs and reserves. The fee is added to the loan amount and paid down over the term, which means you pay interest on it. On the $8,600 example above, financing it at a typical rate adds roughly tens of dollars a month, depending on the rate and term.

The tradeoff is simple: paying the fee in cash costs more now but less overall; financing it costs less now but more over time. There is no wrong answer, only the one that fits your cash position. A lender can show both options on your Loan Estimate side by side.

Refunds if your rating comes later

If you pay the funding fee at closing and are later awarded a disability rating with an effective date that precedes the loan closing date, you can apply to the VA for a refund of the fee. The refund is not automatic; you have to request it, and the VA processes it after the rating is official.

This is one reason to file any disability claim you intend to pursue before you close, if timing allows. An earlier effective date can make the difference between a refund and a fee you keep, and it has no downside if the claim is denied.

Calculate your funding fee

The calculator below applies the schedule above to your loan amount, down payment, and use status, and it flags the exemption if you are disabled or a surviving spouse. Run it with a few down-payment scenarios to see how the fee moves, then bring the number to a lender to confirm it against your actual Loan Estimate.