VA Funding Fee Chart 2026
Last updated March 2026. Source, VA.gov.
What Is the 2026 VA Funding Fee?
The VA funding fee is a one-time charge that keeps the VA loan program running so Veterans can buy with no money down and no monthly mortgage insurance.
First-time buyers with no down payment pay 2.15% of the loan amount. Put 5% down and it drops to 1.50%, or 10% down and it is 1.25%. If you have used your VA benefit before, the no-down fee is 3.30%. A VA IRRRL streamline is always just 0.50%, and Veterans with a VA disability rating of 10% or higher pay nothing. Most borrowers roll the fee into the loan so they bring no extra cash to closing.
VA Funding Fee for a Purchase Loan
Rates are the same for active-duty, Veterans, Reserves, and National Guard since 2020.
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| None ($0 down) | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Reserves and National Guard pay the same rates as active-duty since January 2020. If you see a site showing different rates for Reserves, that information is outdated.
VA Funding Fee for a Refinance
The VA IRRRL has the lowest funding fee of any VA loan type.
What the Funding Fee Looks Like in Dollars
Here is what real buyers pay. Most people roll the fee into the loan so they bring no extra cash to closing.
Who Does Not Pay the Funding Fee?
If any of these apply to you, the fee is waived completely and you pay nothing.
- You have a VA disability rating of 10% or higher
- You are a Purple Heart recipient currently serving on active-duty
- You are a surviving spouse receiving Dependency and Indemnity Compensation (DIC)
- You are receiving VA compensation for a service-connected disability rated before discharge
If you paid the funding fee and later received a disability rating, you may be able to get a refund. Call the VA at 1-877-827-3702.
Can You Roll the Funding Fee Into the Loan?
Yes, and most Veterans do. Rolling it in means you pay nothing out of pocket at closing. The fee gets added to your loan balance and spread across your monthly payments. On a $300,000 loan the fee adds about $42 a month.
You can also pay it upfront if you want a lower loan balance, or have the seller cover it through seller concessions of up to 4% of the purchase price. The funding fee is generally tax deductible in the year your loan closes because the IRS treats it as prepaid mortgage interest. Check with a tax professional for your situation.
VA Funding Fee FAQs
Does the funding fee change every year?
The rates can change when Congress passes new legislation. The current rates have been in effect since January 2020 and are set through 2030. We update this chart every January and whenever Congress makes changes.
What counts as first use versus subsequent use?
First use means you have never had a VA purchase or cash-out refinance loan before. Subsequent use means you have. An IRRRL does not count as a use for this purpose. If you had a VA loan, sold the home, and restored your entitlement, your next purchase loan is still considered subsequent use.
Is the funding fee the same as mortgage insurance?
No. The funding fee is a one-time charge. VA loans have no monthly mortgage insurance, which is one of the biggest advantages of using a VA loan. On a conventional loan with less than 20% down you would pay PMI every month until you reach 20% equity.
Do you pay the funding fee on a VA construction loan?
Yes. VA construction loans, including one-time close construction-to-permanent loans, follow the same funding fee schedule as a purchase loan. The fee is based on the total loan amount, your service type, and whether it is your first or subsequent use.
How is the funding fee calculated on an IRRRL?
The IRRRL funding fee is always 0.50% of the new loan amount. If your current balance is $250,000, the fee is $1,250. Most people roll this into the new balance. There is no difference for first use versus subsequent use on an IRRRL.
Want your exact funding fee?
Talk with a PBT Bancorp VA specialist and find out your exact funding fee, including whether you qualify for an exemption. Call 800-697-4371 or get pre-qualified online.
This information is for educational purposes and is not a commitment to lend. Funding fee rates are set by the Department of Veterans Affairs and are current as of January 2026. Rates are subject to change. PBT Bancorp, an FDIC member bank and a wholesale broker licensed in all 50 states. Company NMLS #257781, Michael Parker NMLS #457569. Equal Housing Lender.