Moving to Scott AFB › VA Funding Fee 2026
VA Funding Fee 2026: Rates, Exemptions and Examples
The VA funding fee is a one-time charge on a VA-backed home loan. In 2026, a purchase with less than 5% down costs 2.15% of the loan on first use and 3.3% after first use. Putting 5% down lowers it to 1.5%, and 10% down to 1.25%. Veterans who receive VA disability compensation do not pay it.
Source: VA.gov, VA funding fee and loan closing costs (page dated 2026-10-05). Rates effective April 7, 2023. Verified 2026-10-06.
Purchase and construction loans
| Use | Down payment | Funding fee |
|---|---|---|
| First use | Less than 5% | 2.15% |
| First use | 5% or more | 1.5% |
| First use | 10% or more | 1.25% |
| After first use | Less than 5% | 3.3% |
| After first use | 5% or more | 1.5% |
| After first use | 10% or more | 1.25% |
The same rates apply to Veterans, active-duty service members, and National Guard and Reserve members. If you used a VA loan only to buy a manufactured home in the past, VA says you still pay the first-use rate.
Refinance and other loans
- Interest Rate Reduction Refinancing Loan (IRRRL): 0.5%
- Cash-out refinance: 2.15% first use, 3.3% after first use
- Loan assumption: 0.5%
What it costs on a typical loan
On a $300,000 loan with less than 5% down, the fee is $6,450 on first use (2.15%) and $9,900 after first use (3.3%). VA lets you pay the fee at closing or roll it into the loan; ask your lender how each option changes your payment.
Who is exempt
According to VA, you won't pay the funding fee if any of these is true:
- You're receiving VA compensation for a service-connected disability.
- You're eligible to receive VA compensation for a service-connected disability, but you're receiving retirement or active-duty pay instead.
- You're receiving Dependency and Indemnity Compensation (DIC) as the surviving spouse of a Veteran.
- You're a service member who has received a proposed or memorandum rating before the loan closing date that says you're eligible to get compensation because of a pre-discharge claim.
- You're an active-duty member of the Armed Forces and, on or before your loan closing date, you provide evidence that you received a Purple Heart.
Your Certificate of Eligibility shows whether you are exempt. Check it with your lender before you lock your loan.
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Common questions
What is the VA funding fee in 2026?
For a purchase loan with less than 5% down, the VA funding fee is 2.15% on first use and 3.3% after first use. With 5% or more down it is 1.5%, and with 10% or more down it is 1.25%, for first or later use. These rates have been in effect since April 7, 2023.
Who does not have to pay the VA funding fee?
Veterans receiving VA compensation for a service-connected disability (or eligible for it but receiving retirement or active-duty pay instead), surviving spouses receiving DIC, service members with a qualifying proposed or memorandum rating before closing, and active-duty members who provide evidence of a Purple Heart on or before closing.
What is the funding fee on a VA IRRRL?
The VA funding fee on an Interest Rate Reduction Refinancing Loan (IRRRL) is 0.5%.
Can the funding fee be refunded?
VA says you may be eligible for a refund if you are later awarded VA compensation for a service-connected disability with an effective date before your loan closing.
