Current VA rates effective April 7, 2023
2026 VA Funding Fee Chart
The VA funding fee is a one-time charge that can usually be added to the loan instead of paid in cash at closing. When the VA records show a verified exemption, the funding fee is $0. For a first VA purchase with less than 5% down, the current fee is 2.15%, while a later use with less than 5% down is 3.30%.
If you put at least 5% down, the purchase or construction fee drops to 1.50%, and with at least 10% down it drops to 1.25%. A VA Interest Rate Reduction Refinance Loan (IRRRL), often called a streamline refinance, has a 0.50% fee. If the VA records show that you are exempt, you do not pay a funding fee at all.
- Current VA.gov rate table
- Purchase and construction chart
- IRRRL and cash-out rates
- PBT Bancorp NMLS #257781
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What is the 2026 VA funding fee chart for purchase and construction loans?
Purchase and construction loans use the same VA funding fee chart, so the percentage comes down to whether this is your first use and how much you put down. The down payment is measured against the purchase price, but the funding fee is calculated from the loan amount after the down payment.
On a phone, swipe the table to compare first use with subsequent use.
| First use | Less than 5% | 2.15% |
| First use | 5% or more | 1.50% |
| First use | 10% or more | 1.25% |
| After first use | Less than 5% | 3.30% |
| After first use | 5% or more | 1.50% |
| After first use | 10% or more | 1.25% |
The U.S. Department of Veterans Affairs publishes this funding fee rate chart, which is effective April 7, 2023 and current on July 30, 2026.
What are the 2026 VA refinance and other funding fee rates?
A VA cash-out refinance uses a 2.15% fee for first use and 3.30% after first use, and putting more equity into the home does not lower that fee. An IRRRL has a 0.50% fee, while assumptions, certain manufactured-home loans, and Vendee loans used to buy VA-acquired properties have the fixed rates shown in the chart.
On a phone, swipe the table to see each rate note.
| VA cash-out refinance | First use | 2.15% |
| VA cash-out refinance | After first use | 3.30% |
| VA IRRRL | Any use | 0.50% |
| Manufactured home not permanently affixed | Any use | 1.00% |
| VA loan assumption | Any use | 0.50% |
| Vendee loan for a VA-acquired property | Any use | 2.25% |
The U.S. Department of Veterans Affairs publishes this funding fee and closing-cost guidance, which was last updated January 15, 2026.
Confirm the correct funding-fee category
Does first use, subsequent use, or a down payment change your fee?
First use, subsequent use, and the down payment can change the VA funding fee. We will pull the COE and calculate the correct dollar amount for the loan you are considering.
How is the VA funding fee calculated?
Calculate the fee by starting with the purchase price, subtracting the down payment, and multiplying the remaining loan amount by the correct percentage. On a hypothetical $300,000 purchase with $15,000 down, the base loan is $285,000, and a 1.50% fee comes to $4,275.
If you finance that fee, it is added after the calculation, which brings the loan to $289,275 before any other amount VA allows to be financed. If we verify a funding-fee exemption, the fee is $0.
What does the funding fee look like in dollars?
The dollar examples below show how much the percentage changes the loan. They use a hypothetical $300,000 purchase with no funding-fee exemption and do not include interest, taxes, insurance, prepaid items, or other closing costs.
First use, $0 down
On a $300,000 loan, 2.15% comes to $6,450. If you add the fee to the loan, the total becomes $306,450.
After first use, $0 down
A 3.30% fee on a $300,000 loan comes to $9,900. Financing it produces a total loan amount of $309,900.
At least 5% down
With $15,000 down, the base loan is $285,000 and the 1.50% fee comes to $4,275, while the $15,000 down payment remains separate from the fee.
At least 10% down
A $30,000 down payment leaves a $270,000 base loan. The 1.25% fee is $3,375, and the down payment remains separate from that fee.
What determines the VA funding fee percentage?
To calculate the fee, we confirm the type of VA loan and whether the VA records show a first or later use. We also check the down payment when it matters and whether your records show an exemption.
Loan type
The percentage changes depending on whether you are buying, building, refinancing with cash out, using an IRRRL, or assuming an existing VA loan.
First or subsequent use
Purchase, construction, and cash-out fees can be higher after you have used a VA-backed or VA direct home loan before.
Down payment
On a purchase or construction loan, the fee drops when you put at least 5% or at least 10% down. Those lower percentages do not apply to a cash-out refinance.
Verified exemption
If the VA records show that you qualify for an exemption, you do not pay the funding fee, no matter which percentage would otherwise apply.
What counts as first use or subsequent use?
Many Veterans assume that selling a previous home and restoring the entitlement also resets the funding fee, but restoring entitlement does not turn the next loan back into a first use. We pull your Certificate of Eligibility (COE) and confirm the status shown by the VA instead of relying on memory or an older COE.
If your only previous VA loan was used to buy a manufactured home that was not permanently attached to land, VA treats the next loan as a first use for the funding fee. This is a narrow exception, so we confirm it in the VA record before using the lower percentage.
Who is exempt from the VA funding fee?
Some Veterans do not have to pay the funding fee, and we verify that before closing when we pull the COE and review the VA record. The exemption is based on the benefit or status shown by VA, not simply on having a particular disability rating.
- Receiving VA compensation for a service-connected disability
- Eligible to receive VA compensation but receiving retirement or active-duty pay instead
- Receiving qualifying Dependency and Indemnity Compensation as a surviving spouse
- A service member with a qualifying proposed or memorandum pre-discharge rating before closing
- An active-duty member who provides evidence of a Purple Heart on or before closing
An exemption changes the loan amount and payment
Should your VA funding fee be reduced to $0?
An exemption shown on the COE can reduce the funding fee to $0. We can show how the verified result changes the financed balance, payment, and cash needed.
When can a VA funding fee be refunded?
VA can refund a funding fee when it later awards service-connected disability compensation with an effective date before the loan closed. The effective date is what matters, and a proposed or memorandum rating received only after closing does not create a refund under the current VA rule.
We look for a possible exemption before closing because VA specifically tells lenders not to charge the fee and assume it can be refunded later. If you believe the fee was charged incorrectly, call us or the VA Regional Loan Center at 877-827-3702, and we can help you determine what needs to be reviewed.
Can the funding fee be financed or paid by the seller?
You can pay the funding fee at closing or add it to the VA loan. Financing keeps the cash from being due at closing, but it increases the loan balance and the interest paid over time. On a purchase or construction-permanent loan, the funding fee is the only closing cost VA allows us to add to the loan amount.
A seller or builder can also pay the funding fee through a seller concession. VA limits total seller concessions to 4% of the home’s reasonable value. Ordinary closing-cost credits are treated separately, so we review the contract and Loan Estimate instead of grouping every credit together.
Is the VA funding fee tax deductible in 2026?
Starting with 2026 home purchases, the VA funding fee can qualify for the federal mortgage-insurance-premium deduction. You generally need to itemize, and the amount can be limited by income, filing status, who paid the fee, and the way the loan was used.
We will show you where the funding fee appears on the Closing Disclosure and Form 1098. A tax professional should tell you whether it is deductible and how much you can claim on your return.
See how the fee changes your loan
Which VA funding fee and loan resources should you use next?
Use the guide or calculator that matches what you are doing, and we will help you connect the funding fee to the payment and cash needed.
Payment
VA loan payment calculator
Compare paying the fee at closing with adding it to the loan, and see how each choice changes the estimated payment and cash needed.
Estimate your payment
Purchase
VA home loan guide
The VA purchase guide shows how entitlement, the appraisal, income, monthly debts, and the property work together.
Review a VA purchase
Construction
VA one-time close construction loan
Construction guidance connects the land, building costs, contractor, and permanent mortgage in one VA closing.
Review VA construction
IRRRL
VA IRRRL guide
For an IRRRL, the 0.50% funding fee affects the new balance, payment, closing costs, and time needed to recover the cost.
Review an IRRRL
Cash-out
VA cash-out refinance
Cash-out borrowers can see how the funding fee changes both the new balance and the equity available for proceeds.
Review cash-out options
Eligibility
VA eligibility and entitlement
Learn how we pull the COE, confirm eligibility and entitlement, and determine whether the funding fee is based on a first or later use.
Review VA eligibility
Costs
Compare VA loan rates and costs
Your written comparison includes the rate, annual percentage rate, points, credits, payment, funding fee, and cash needed on each written option.
Compare loan costs
Review
Get pre-qualified
We will pull the COE, confirm the funding fee or exemption, and show you the estimated payment and cash needed before you decide what to do.
Start your VA review
2026 VA funding fee questions
What is the VA funding fee for first use with no down payment in 2026?
If this is your first VA purchase or construction loan and you are putting less than 5% down, the funding fee is 2.15% of the loan amount. On a hypothetical $300,000 base loan, that comes to $6,450.
What is the VA funding fee for subsequent use with no down payment?
If you have used a VA-backed or VA direct home loan before and are putting less than 5% down, the purchase or construction funding fee is 3.30%. On a hypothetical $300,000 base loan, that comes to $9,900.
What is the VA funding fee with 5% down?
With at least 5% down but less than 10%, the purchase or construction funding fee is 1.50% whether this is your first use or a later use. We calculate the percentage from the loan amount after the down payment.
What is the VA funding fee with 10% down?
With at least 10% down, the purchase or construction funding fee is 1.25% whether this is your first use or a later use. We calculate the percentage from the base loan amount, not the purchase price.
Do you pay a funding fee on a VA IRRRL?
A VA Interest Rate Reduction Refinance Loan (IRRRL) has a 0.50% funding fee unless VA records show that you are exempt. You can add the fee to the new loan, but we still include it when we compare the new balance, payment, and total cost.
What is the funding fee for a VA cash-out refinance?
The VA cash-out refinance funding fee is 2.15% for first use and 3.30% after first use unless VA records show that you are exempt. Having more equity in the home does not lower the cash-out funding-fee percentage.
Do VA construction loans use the purchase funding fee chart?
VA construction loans use the same current funding-fee percentages as purchase loans. We confirm whether this is your first or later use and how much cash or eligible construction equity you are bringing to determine the correct percentage.
Is the funding fee automatically waived with a 10% disability rating?
That is a common misconception, but a 10% disability rating by itself is not the rule. The exemption depends on qualifying VA compensation or another listed status, and we pull the COE and check the VA record before closing.
Can I get a VA funding fee refund after closing?
VA may refund the fee if it later awards service-connected disability compensation with an effective date before your loan closed. The effective date and VA record must support the refund, so we do not charge the fee before closing on the assumption that VA will return it later.
Can the VA funding fee be rolled into the loan?
Financing the VA funding fee is allowed, so it can become part of your total loan instead of being due in cash at closing. That choice increases the balance and interest paid over time, and other purchase closing costs cannot be added the same way.
Can a seller pay the VA funding fee?
A seller or builder can pay the VA funding fee as a seller concession. VA limits total seller concessions to 4% of the home’s reasonable value, while ordinary closing-cost credits are handled separately.
Is the VA funding fee tax deductible for a 2026 home purchase?
A VA funding fee paid for a 2026 home purchase can qualify for the federal mortgage-insurance-premium deduction. You generally need to itemize, and income, filing status, and who paid the fee can affect the amount, so a tax professional should review your return.
Have us confirm your VA funding fee
We pull your COE and confirm the correct funding-fee percentage or exemption. You will see exactly how the fee changes the loan amount, payment, and cash needed before closing.
Last reviewed July 30, 2026.