2026 VA Funding Fee Changes: What Veterans Actually Pay Now
The VA funding fee schedule sets the one-time cost that replaces mortgage insurance on every VA loan. Here's the current chart, who's exempt, and how it's financed.
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Quick answer
How much is the VA funding fee in 2026?
The VA funding fee ranges from 1.25% to 3.30% of the loan amount depending on down payment and whether it's a first or subsequent use, 0.50% flat for an IRRRL, and 2.15%–3.30% for a cash-out refinance. Veterans receiving VA disability compensation, and certain surviving spouses, pay nothing.
Sourced from the primary government publications cited at the end of this article.
Summary and page contents
Written by the Simply Approved Mortgages editorial team
Reviewed for program accuracy by our Simply Approved Mortgages underwriting desk — Licensed mortgage originators (NMLS) — Colorado & Florida. We summarize published federal program rules; we do not set them. This article is educational and is not a quote, approval, or commitment to lend.
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The VA funding fee is the mechanism that keeps the VA home loan program self-funding for taxpayers, and it's the reason VA loans need no monthly mortgage insurance. It's a one-time percentage of the loan amount, financeable into the loan or paid in cash at closing.
Purchase and construction loans
Down payment
First use
Subsequent use
Less than 5%
2.15%
3.30%
5% – 9.99%
1.50%
1.50%
10% or more
1.25%
1.25%
Refinance loans
IRRRL (Interest Rate Reduction Refinance Loan): 0.50%, every time, regardless of first or subsequent use.
Cash-out refinance: 2.15% first use, 3.30% subsequent use.
Native American Direct Loan (NADL): 1.25% for a purchase, 0.50% for an IRRRL.
Loan assumption: 0.50%, paid by the assuming buyer.
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Complete the short form and we send back a full VA breakdown: your entitlement, the VA funding fee, and an estimated $0-down monthly payment — with no mortgage insurance, ever.
Your entitlement and county loan limit (if applicable)
$0 down payment — no mortgage insurance, ever
One-time VA funding fee, financeable into the loan
Estimated monthly payment with taxes and insurance
Summary emailed and shown on screen · Not an approval or commitment to lend
Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, VA guidelines, and final lender approval. Not affiliated with, endorsed by, or sponsored by the U.S. Department of Veterans Affairs. Equal Housing Opportunity.
Veterans receiving VA compensation for a service-connected disability
Veterans who would be entitled to compensation but are receiving retirement or active-duty pay instead
Veterans rated eligible for compensation based on a pre-discharge exam or review
Active-duty service members who have been awarded the Purple Heart
Surviving spouses of veterans who died in service, died from a service-connected disability, or are receiving Dependency and Indemnity Compensation (DIC)
Your Certificate of Eligibility (COE) states your exemption status. If a disability rating is approved after you've already closed and paid the fee, you can request a refund.
How it's paid
Most veterans finance the funding fee into the loan balance rather than paying it in cash — on a $400,000 loan at the 2.15% first-use rate, that's $8,600 added to the loan rather than due at the closing table. Financing it slightly raises the loan-to-value and the payment, but keeps more cash available for moving and reserves.
The funding fee is separate from, and in addition to, ordinary closing costs like the appraisal, title work, and recording fees.
Sources for this article
This article summarizes published federal program rules. The primary sources below govern the figures and requirements described above.
Verified against VA Lenders Handbook M26-7, Change 6 — August 12, 2026. Simply Approved Mortgages is not affiliated with or endorsed by HUD, VA, or any government agency.
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Educational information notice
This article is for general educational and informational purposes only. We work to keep our content accurate and current, but errors, omissions, or outdated information may occur. Verify current requirements with official sources and a licensed loan officer before making financial decisions. This article is not legal, tax, or financial advice; a rate quote; an approval; or a commitment to lend. To the maximum extent permitted by law, Simply Approved Mortgages LLC is not liable for decisions made based solely on this article.
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Twice-a-month updates for buyers and homeowners: rate movement, VA guideline changes, funding-fee and entitlement updates, and the deals we're closing. No spam, unsubscribe anytime.
✓Weekly VA rate snapshot
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✓First-time buyer playbooks
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VA rate updates, market trends, and program changes. No spam.
By submitting this form you consent to receive VA rate, market and program update emails from Simply Approved Mortgages LLC at the address provided. Consent is not a condition of any purchase or of obtaining credit, and this is not an application. We do not autodial, call or send SMS/text messages to newsletter subscribers. Message frequency varies; unsubscribe any time. Read our Privacy Notice.
