Loan fees

VA Funding Fee Chart for 2026

Editorial Team · Updated January 1, 2026

The VA funding fee is a one-time charge that takes the place of the monthly mortgage insurance other low-down-payment loans require. For most first-time VA buyers putting nothing down it is 2.15% of the loan amount; a 10% down payment cuts it to 1.25%.

You can pay it at closing or roll it into the loan, and some veterans are exempt entirely. The same rates apply whether you served in the regular military, the Reserves or the National Guard.

Purchase and construction loans

The fee depends on two things: your down payment and whether this is your first VA loan or a later one. A larger down payment lowers it; using the benefit again with no down payment raises it.

VA funding fee — purchase or construction

Down payment	First use	Subsequent use
Less than 5%	2.15%	3.30%
5% to less than 10%	1.50%	1.50%
10% or more	1.25%	1.25%

Refinance loans

A cash-out refinance carries the same fee as a purchase — 2.15% on first use and 3.30% on a later use. A streamline refinance (an Interest Rate Reduction Refinance Loan, or IRRRL) is far cheaper at a flat 0.50%, no matter how many times you have used the benefit.

VA funding fee — refinance

Loan type	First use	Subsequent use
Cash-out refinance	2.15%	3.30%
IRRRL (streamline)	0.50%	0.50%

Who is exempt

You pay no funding fee at all if you are receiving VA compensation for a service-connected disability; if you are eligible for that compensation but receiving retirement or active-duty pay instead; if you are a surviving spouse receiving Dependency and Indemnity Compensation; if you have a proposed or memorandum disability rating before closing; or if you are an active-duty service member who provides evidence of a Purple Heart by closing.

How the fee is paid

Most borrowers finance the funding fee into the loan rather than paying cash, which spreads it across the term but adds a little to the balance and the monthly payment. Because it is the main cost of a VA loan — there is no monthly mortgage insurance — it is worth modeling before you commit.

Are the 2026 rates different?

No. The funding-fee schedule has been unchanged since the rates set under the Blue Water Navy Vietnam Veterans Act took effect, and the same rates remain in place for 2026. The older split that charged Reserve and National Guard members more was eliminated — every eligible borrower now pays the same rate for the same down payment.

Sources

VA — Funding fee and loan closing costs

Put the numbers to work

VA Loan Calculator

Estimate a VA loan payment: $0 down, no PMI, including the one-time funding fee.

Mortgage Calculator

Estimate your monthly principal-and-interest payment and see a full amortization schedule for any home loan.

Home Closing Cost Calculator

Estimate the closing costs a buyer pays: origination, title, escrow, appraisal and prepaids.

Related reference

Frequently asked

How much is the VA funding fee in 2026?

For a purchase with no down payment it is 2.15% of the loan on first use and 3.30% on later use. With 5% down it is 1.50%, and with 10% or more it is 1.25%.

Can the VA funding fee be waived?

Yes. Veterans receiving compensation for a service-connected disability, eligible surviving spouses, and certain Purple Heart recipients are exempt from the fee.

Can I roll the funding fee into my loan?

Yes. Most borrowers finance the fee into the loan amount instead of paying it in cash at closing.

Is the funding fee the same for the Reserves and National Guard?

Yes. Since the 2020 change, regular military, Reserve and National Guard members all pay the same funding-fee rates.

All reference data