VA funding fee 2026: rates, chart, and exemptions
The one-time fee that keeps the VA program running, what it costs on your loan, and how to know if you're exempt.
Updated September 29, 2026 · By the Digital Mortgage, LLC VA lending team
The VA funding fee is a one-time charge on most VA-backed loans. It's calculated as a percentage of your loan amount and helps fund the program so it can offer $0 down and no monthly mortgage insurance. Most borrowers roll it into the loan instead of paying it at closing.
2026 VA funding fee chart (purchase loans)
These rates have been in effect since April 7, 2023, according to VA.gov.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Example
A first-time VA buyer purchasing a $300,000 home with $0 down pays 2.15%, or $6,450. Rolled into the loan, the total loan amount becomes $306,450. With 5% down ($15,000), the fee falls to 1.5% of the $285,000 loan, or $4,275.
Who is exempt from the VA funding fee?
- Veterans receiving VA compensation for a service-connected disability.
- Veterans eligible for disability compensation but receiving retirement or active-duty pay instead.
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC).
- Service members with a proposed or memorandum rating before closing showing eligibility for compensation from a pre-discharge claim.
- Active-duty members who show proof of a Purple Heart on or before closing.
Is the funding fee worth it?
For most buyers, yes. FHA loans charge upfront mortgage insurance plus monthly mortgage insurance, and conventional loans with less than 20% down usually carry PMI. The VA fee is paid once, and there's no monthly mortgage insurance afterward. Compare VA and FHA loans.
Frequently asked questions
How much is the VA funding fee in 2026?
For a purchase loan, 2.15% of the loan amount on first use with less than 5% down and 3.3% on later uses with less than 5% down. With 5% or more down it's 1.5%, and with 10% or more it's 1.25%.
Can the VA funding fee be financed?
Yes. Most borrowers roll the funding fee into the loan amount instead of paying it in cash at closing.
Do disabled veterans pay the VA funding fee?
No. Veterans receiving VA compensation for a service-connected disability are exempt.
Is the VA funding fee refundable?
It can be if you're later awarded disability compensation with an effective date before your loan closed.
Sources: VA.gov: funding fee. This article is general information, not a loan commitment. Eligibility, rates, and terms depend on credit approval and program guidelines.