VA Funding Fee (2026): Rate Chart, Exemptions, and Payment Options
The VA funding fee is a one-time charge on many VA-backed loans that helps keep the program running without monthly mortgage insurance. Your percentage depends on the loan type, down payment (for purchases), and whether it’s your first time using VA financing.
Funding fee basics
- One-time VA charge: Paid on many purchase, construction, and refinance loans unless you qualify for an exemption.
- Calculated as a percent: The fee is based on your total loan amount (not simply the purchase price).
- What affects the rate: Loan type matters, and for purchases the down payment tier and prior VA use can change the percentage.
- Separate from other costs: Title/settlement, recording, and prepaid taxes/insurance are different line items on your Loan Estimate.
2026 rate table
VA-backed purchase and construction loans (percent of total loan amount; current as of February 2026)
| Down payment | First-time use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
- Cash-out refinance: 2.15% (first use) or 3.3% (after first use).
- IRRRL (streamline refinance): 0.5% (flat rate).
- Loan assumption: 0.5%.
- Manufactured home loan: 1%.
Exemptions
- VA disability compensation: Many borrowers who receive compensation for a service-connected disability are exempt.
- Eligible but paid differently: If you’re eligible for compensation but receive retirement pay or active-duty pay instead, you may still qualify for an exemption.
- Surviving spouse (DIC): Certain surviving spouses receiving Dependency and Indemnity Compensation may be exempt.
- Purple Heart (active duty): Active-duty service members with qualifying Purple Heart documentation may be exempt.
- Timing matters: Some pre-discharge disability ratings can create an exemption if documented before closing.
How to pay (and what to negotiate)
- Finance it: Many borrowers add the funding fee to the loan balance to reduce upfront cash, which increases the loan amount and total interest over time.
- Pay at closing: You can also pay it as a lump sum at settlement.
- Seller credits: You can negotiate seller credits, but VA rules cap seller concessions at 4% of the home’s reasonable value.
- Know what can be financed: On purchase and construction/permanent loans, the funding fee is generally the only closing cost that can be financed into the loan.
FAQs
How much is the VA funding fee in 2026?
Who is exempt from the VA funding fee?
Can I roll the VA funding fee into the loan or have the seller pay it?
VA-backed purchase & construction loans (official rate chart)
Down payment tiers affect purchase/construction rates. The funding fee is a % of the loan amount (typically purchase price minus down payment).
| Down payment tier | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% or more | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
If your purchase price is $400,000 with $20,000 down, the fee applies to the $380,000 base loan amount.
If your only prior VA loan was to purchase only a manufactured home, VA indicates you may still pay the first‑use rate.
VA-backed cash-out refinance loans (official rate chart)
Cash-out refinance rates don’t change with down payment tiers. They vary only by first vs after first use.
| First use | After first use |
|---|---|
| 2.15% | 3.30% |
For cash-out refi, VA doesn’t use down payment tiers. It’s simply first use vs after first use.
If your only prior VA use was purchasing only a manufactured home, VA indicates you may still pay first-use rates here.
Native American Direct Loan (NADL) + other VA loan types
These rates don’t change based on down payment or first use/after first use (except NADL purchase vs refinance).
| NADL type | Funding fee rate |
|---|---|
| Purchase | 1.25% |
| Refinance | 0.50% |
| Loan type | Funding fee rate |
|---|---|
| IRRRL (VA Streamline refinance) | 0.50% |
| Manufactured home loans (not permanently affixed) | 1.00% |
| Loan assumptions | 0.50% |
| Vendee loan (buying VA-acquired property) | 2.25% |
If you’re doing an IRRRL, the funding fee rate is 0.50% (unless you’re exempt, then it’s 0%).
Rates are percentages. The calculator below converts them into a funding fee amount and shows the difference between paying it at closing vs financing it.
Who is exempt from the VA funding fee (and refunds)
VA says you may not have to pay the funding fee if you meet certain requirements—and some borrowers can qualify for a refund later.
- Receiving VA compensation for a service-connected disability
- Eligible for compensation but receiving retirement/active-duty pay instead
- Receiving DIC as the surviving spouse of a Veteran
- Service member with a proposed/memo rating before closing (pre-discharge claim)
- Active-duty service member with evidence of a Purple Heart on/before closing
You may be eligible for a refund if you’re later awarded service-connected disability compensation retroactive to before your loan closing date.
If the award is after closing and not retroactive, VA indicates you generally won’t qualify for a refund based on that rating.
Confirm exemption status early with your lender and VA documentation (usually via your COE). This page is informational and reflects VA’s published charts and guidance.
VA funding fee calculator (rate + dollars)
Enter amounts like $400,000, 350k, or 1.2m. For down payment you can enter dollars or a percent like 10%.
Full guide: how the VA funding fee works in 2026
What changes the fee, how to calculate it, how financing works, and how seller credits interact with VA rules.
If you’re budgeting for a VA loan, the funding fee is one of the only “big-ticket” line items that can move based on your scenario. The math is straightforward once you lock down the few variables that matter. If you’re exempt, the funding fee becomes $0.
- Loan type: purchase vs cash-out vs IRRRL vs other
- Exempt status: if exempt → rate is 0%
- First use vs after first use: applies to purchase + cash-out
- Down payment tier: applies to purchase/construction only
On a purchase loan, VA explains the funding fee is applied to the loan amount (purchase price minus down payment), not to your purchase price.
Step-by-step: calculate the funding fee
- Confirm loan type (purchase/construction, cash-out, IRRRL, assumption, etc.).
- Confirm exemption status (usually via COE + lender/VA documentation).
- If it’s a purchase/construction loan, determine: first use vs after first use and your down payment tier.
- Compute base loan amount (purchase price minus down payment, or refinance loan amount).
- Funding fee = base loan amount × (rate %).
- Decide whether to finance the fee into the loan or pay at closing (when allowed).
Example 1: purchase loan (5% down, first use)
| Input | Value |
|---|---|
| Purchase price | $400,000 |
| Down payment | $20,000 (5%) |
| Base loan amount | $380,000 |
| Funding fee rate (first use, 5%+ down) | 1.50% |
| Funding fee (base × rate) | $5,700 |
Example 2: cash-out refinance (after first use)
Cash-out refinance doesn’t use down payment tiers. It’s first use vs after first use, applied to the refinance loan amount.
| Input | Value |
|---|---|
| New loan amount (cash-out refi) | $350,000 |
| Funding fee rate (after first use) | 3.30% |
| Funding fee (base × rate) | $11,550 |
Finance the fee vs pay it at closing
If you finance the funding fee, you’re adding that fee amount to the loan balance. That can reduce your upfront cash, but it also increases your total balance (and therefore interest over time). If you pay it at closing, the loan balance stays lower.
VA states that on a purchase or construction/permanent loan, you can finance only the VA funding fee into the loan amount. Other closing costs still need to be paid via cash, credits, or concessions.
The clean check is the base loan amount and the rate tier. If your down payment changes late (or your use status is coded wrong), you can get a different fee number and a last-minute disclosure update.
Can the seller pay the VA funding fee?
In many transactions, yes—this can be negotiated in the contract. VA allows sellers/builders to offer credits to cover closing costs, and VA limits seller concessions to no more than 4% of the home’s reasonable value. VA examples of concessions include credits for the VA funding fee, debt payoff, and prepayment of hazard insurance.
How to avoid funding-fee surprises
- Confirm exemption early: treat it like a pre-close condition and resolve it before the Closing Disclosure window.
- Don’t guess “first use”: if you’ve used VA before, verify how your lender is coding it.
- Validate down payment tier: for purchase loans, moving from 4.99% to 5.00% can change your fee tier.
- Review seller credits: credits must be structured within VA rules and lender overlays.
If you’re validating eligibility and underwriting basics, start here: VA loan requirements.
Funding fee rates are set by VA, but interest rate and lender fees aren’t. Compare offers here: Compare VA loan offers.
Rates can change. This page reflects VA’s published charts and guidance. Always confirm final numbers on your Loan Estimate and Closing Disclosure.
FAQ
Short answers for the most common VA funding fee questions.
What is the VA funding fee?
How much is the VA funding fee in 2026?
Does down payment reduce the funding fee?
Can I finance the funding fee into the loan?
Who is exempt from the VA funding fee?
Can I get a refund if I become exempt after closing?
Can the seller pay my VA funding fee?
Does the funding fee apply to an IRRRL?
Is the funding fee based on purchase price or loan amount?
Does credit score affect the VA funding fee rate?
Downloads (CSV) + cite this dataset
Download CSVs to reuse the official rates in spreadsheets, research, or tools.
VA Loan Network. “2026 VA Funding Fee Rates (Official VA Charts + Calculator).” Source: VA.gov. https://valoannetwork.com/va-loans/va-funding-fee/
Sources
Primary source used to build these charts, exemptions, and calculator logic.
Rates can change. VA.gov is the authoritative source for the official percent charts and exemption language.
Explore VA Funding Fee Resources
These articles cover costs, exemptions, refunds, deductions, and smart ways to handle the VA funding fee at closing.- VA Funding Fee: Complete Guide — Who pays, how it’s calculated, key examples.
- Disabled Veterans: VA Funding Fee Exemption — Eligibility by rating and required documents.
- VA Funding Fee Refund: How It Works — When refunds apply and how to request.
- Surviving Spouses: Funding Fee Exemptions — Qualifying cases, proof, and application steps.
- Is the VA Funding Fee Tax-Deductible? — When deductible and where it appears.
- Can the Seller Pay the VA Funding Fee? — Concession rules, 4% cap, negotiation tips.
- Finance the Funding Fee or Pay at Closing? — Compare total cost and cash flow.
