Quick answer: The VA funding fee is a one-time charge, calculated as a percentage of the loan amount. On a purchase with less than 5% down it is 2.15% first use and 3.3% subsequent use. Put 5% to under 10% down and it drops to 1.5%; 10% or more and it is 1.25% — on either first or subsequent use. An IRRRL is 0.5%. A cash-out refinance matches the purchase figures. If you are exempt, it is $0. Full chart and a calculator below.
VA funding fee chart: the full rate schedule
This is the complete published schedule. Percentages are of the loan amount.
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% (including $0 down) | 2.15% | 3.3% |
| 5% to less than 10% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Exempt (service-connected disability and other exempt categories) | $0 | $0 |
| Loan type | First use | Subsequent use |
|---|---|---|
| Purchase or construction, $0 down | 2.15% | 3.3% |
| Cash-out refinance | 2.15% | 3.3% |
| IRRRL (streamline refinance) | 0.5% regardless of prior use | |
Is the 2025 chart different? No. These statutory percentages are unchanged from the 2025 schedule, so a “2025 VA funding fee chart” shows the same figures as a 2026 one. What moves between years is the loan amount the percentages apply to, not the table.
VA funding fee calculator
Estimate the one-time fee from the published schedule. Illustrative — your Certificate of Eligibility decides exempt status.
- Funding fee rate2.15%
- Down payment0.0%
- Loan before fee$478,000
- Loan if fee financed$488,277
Illustrative estimate from VA's published fee schedule. Not a quote, offer, preapproval or commitment to lend, and not a determination of exempt status — only your Certificate of Eligibility establishes that. A funding fee percentage is a share of the loan amount, not an interest rate.
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Ten minutes with a Las Vegas loan officer: your fee, whether you are exempt, and what financing it does to the payment. No obligation, no charge.
Get My QuoteKey takeaways
- One time, not monthly. VA loans carry no monthly mortgage insurance at all.
- Down payment cuts it sharply. 5% down takes a first-use purchase fee from 2.15% to 1.5%; 10% down takes it to 1.25%.
- Subsequent use costs more only under 5% down — at 5% or 10% down, first and subsequent use are identical.
- IRRRL is 0.5%, which is a large part of why streamline refinancing is cheap to execute.
- Exempt means $0, and the Certificate of Eligibility is what establishes it.
- Already paid and later rated? A refund may be due, decided by the rating's effective date.
What the fee actually is, and what it is not
The funding fee is a one-time charge paid to the Department of Veterans Affairs on most VA loans. It exists to keep the loan guaranty programme running at no cost to taxpayers, which is part of why VA lending can carry no down payment and no monthly mortgage insurance.
Three things it is not, because each gets confused regularly. It is not an interest rate — it is a percentage of the amount borrowed, charged once. It is not mortgage insurance — there is no monthly VA mortgage insurance to cancel later. And it is not a lender fee — it goes to VA, and no lender can waive it or discount it.
One more thing it is not: the whole of what you bring to closing. A VA file still carries ordinary third party costs, and the one that catches buyers out is the wood destroying pest report, because whether the property needs one at all comes down to where you are buying. Our state by state guide covers who pays for the VA pest inspection, what it usually costs, and what happens if the report comes back positive.
Who pays nothing
A large share of veterans are exempt. You generally qualify if any of these apply:
- You receive VA compensation for a service-connected disability. The most common reason a fee is waived.
- You are eligible for compensation but receive retirement or active-duty pay instead. The waiver still applies.
- You are a surviving spouse receiving Dependency and Indemnity Compensation on a qualifying veteran's behalf.
- You hold a proposed or memorandum rating dated before your loan closes.
Exempt status is confirmed on your Certificate of Eligibility. Not by a lender's assessment, and not by this calculator — set the exemption field only if your COE says so.
If you paid a fee and were later awarded a rating, a refund may be due, and the rating's effective date is what decides it rather than the notification date. That has its own process and its own timelines — raise it with your loan officer, who can tell you whether a refund claim is worth opening on your file.
Finance the fee, or pay it at closing?
Most buyers roll it into the loan. Doing so means you borrow the fee rather than bringing it to the table, which raises the loan amount and the payment slightly — the calculator above shows both the pre-fee loan and the financed total so you can see the difference.
Paying at closing keeps the balance smaller. Which is better depends on whether cash now or the long-run balance matters more to you, and there is no universally right answer. What is worth avoiding is discovering the choice at the closing table.
The funding fee versus monthly mortgage insurance
| Feature | VA funding fee | Conventional / FHA mortgage insurance |
|---|---|---|
| How often | One time | Every month |
| Can be financed | Yes | Upfront FHA portion only |
| Waived for exempt veterans | Yes | No |
| Ends as you build equity | Already one-time | Conventional PMI can be removed; FHA's annual premium often runs for the life of the loan |
This is the comparison that actually matters when someone tells you a VA loan is expensive because of the fee. A one-time charge and a recurring monthly premium are different kinds of cost, and over any meaningful holding period the arithmetic generally favours the VA loan — before you even reach the fact that it required no down payment.
VA funding fee: FAQ
What is the VA funding fee in 2026?
It is a one-time fee paid to the Department of Veterans Affairs on most VA loans, charged as a percentage of the loan amount. For a purchase or construction loan with less than 5% down it is 2.15% on first use and 3.3% on subsequent use. Putting money down reduces it: 5% to under 10% down is 1.5%, and 10% or more is 1.25%, on both first and subsequent use. An IRRRL is 0.5%. It is not an interest rate and it is not mortgage insurance — VA loans have no monthly mortgage insurance.
Is the 2025 VA funding fee chart different from the 2026 one?
No. The statutory percentages in the chart above are the ones in force for 2026 and they are unchanged from the 2025 schedule, so a “2025 VA funding fee chart” and a 2026 chart show the same figures. What changes between years is the loan amount those percentages are applied to, not the rate table. Always confirm the current schedule against VA's own published figures before relying on it.
Who is exempt from the VA funding fee?
A large share of veterans pay nothing. You generally qualify for the waiver if you are receiving VA compensation for a service-connected disability; if you are eligible for compensation but receive retirement or active-duty pay instead; if you are a surviving spouse receiving Dependency and Indemnity Compensation; or if you hold a proposed or memorandum rating dated before your loan closes. Exempt status is confirmed on your Certificate of Eligibility, not by your lender's opinion.
Can I roll the funding fee into the loan?
Usually yes, and most buyers do. Financing the fee means you borrow it rather than bringing it to closing, which raises the loan amount and therefore the monthly payment slightly. Paying it at closing keeps the loan smaller. Neither is automatically right — it depends on whether cash at closing or the long-run balance matters more to you.
Does the funding fee apply to an IRRRL?
Yes, but at a much lower figure: 0.5% of the loan amount, regardless of whether it is your first use of the benefit. That reduced fee is one of the reasons a streamline refinance is comparatively cheap to execute. Exemptions still apply — an exempt veteran pays nothing on an IRRRL either.
What if I already paid a funding fee and later got a disability rating?
You may be entitled to a refund, and the effective date of the rating is what decides it rather than the date you were notified. That is a separate process with its own steps and timelines, and ask your lender or VA directly about the refund process rather than assuming the fee is lost. It is worth checking: this is real money and a lot of veterans never claim it.
Is the funding fee the same as mortgage insurance?
No, and the difference is the point of the benefit. The funding fee is charged once. Conventional PMI and FHA mortgage insurance are charged every month — and FHA's annual premium often runs for the life of the loan. A VA loan carries no monthly mortgage insurance at all, which is why comparing the one-time fee against a monthly premium usually favours the VA loan over any meaningful holding period.
The bottom line
Read the chart against your own situation: your down payment band, whether this is first or subsequent use, and whether your COE shows you exempt. Those three answers determine the figure entirely. Then decide whether to finance it or pay it, and if you have a disability rating that post-dates a loan you already closed, check whether a refund is owed.
If you want the fee inside a real payment on a real property, tell us about it and a Las Vegas loan officer will run it with you. Valley West Mortgage is a mortgage lender, NMLS #65506. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. Equal Housing Opportunity.
