What Is the VA Funding Fee in 2026, and Who Is Exempt?

Short answer: The VA funding fee is a one-time charge on most VA purchase loans. Right now VA lists it at 2.15% of the loan for a first-time user with less than 5% down, and 3.3% if you have used your VA loan before. You pay nothing if you are exempt, which includes anyone receiving VA disability compensation. You can roll the fee into your loan instead of paying it at closing.

Jennifer Rodriguez is a Realtor® and Military Relocation Professional (MRP®) in Northwest Las Vegas helping military families buy with a VA loan.

Most people first hear about the funding fee late, from a lender, after they have already picked a price range. This guide puts the numbers up front so you can plan around them.

What is the VA funding fee?

The funding fee is a one-time fee VA charges on most VA purchase loans. It is a percentage of your loan amount, and the percentage depends on two things: whether you have used your VA loan before, and how much you put down.

What are the VA funding fee rates for a home purchase?

These are the current rates VA lists for purchase and construction loans, effective April 7, 2023. I checked VA.gov on September 21, 2026, and this is still the chart it shows.

If this is your first time using your VA loan:

• Less than 5% down: 2.15%
• 5% or more down: 1.5%
• 10% or more down: 1.25%

If you have used your VA loan before:

• Less than 5% down: 3.3%
• 5% or more down: 1.5%
• 10% or more down: 1.25%

Notice that the higher rate for repeat users only applies when you put less than 5% down. Once you put 5% or more down, first-time and repeat users pay the same.

Other loan types have their own rates. VA lists 2.15% (first use) or 3.3% (repeat use) for a cash-out refinance, 0.5% for an interest rate reduction refinance (IRRRL) and for a loan assumption, and 1% for a manufactured home loan.

National Guard and Reserve members pay the same rates as veterans and active-duty service members. VA does not list a separate chart for them.

How much is the VA funding fee in dollars?

The fee is a percentage of the loan, so the dollar amount grows with the price. Here is the math on a $450,000 loan:

• First use, less than 5% down (2.15%): $9,675
• Repeat use, less than 5% down (3.3%): $14,850
• 5% or more down (1.5%): $6,750
• 10% or more down (1.25%): $5,625

Now a local example. The median sold price in Centennial Hills over the 12 months ending September 15, 2026 was $442,000, according to LVR Matrix MLS. I use the median because a few very large sales can pull an average up and make a typical home look pricier than it is. If someone bought at that price with less than 5% down, the fee would be about $9,503 for a first-time user and about $14,586 for a repeat user. That is an example of the math, not a quote, and it assumes the loan equals the price. Your lender will give you your exact figure.

Who does not pay the VA funding fee?

VA exempts some borrowers completely. You do not pay the fee if:

• You are receiving VA compensation for a service-connected disability.
• You are eligible for that compensation but are receiving retirement or active-duty pay instead.
• You are a surviving spouse receiving Dependency and Indemnity Compensation (DIC).
• You are an active-duty member who has received a Purple Heart on or before your loan closing date.
• You are a service member with a proposed or memorandum rating before closing.

If you think you might qualify, tell your lender before they run your numbers so they can confirm it. It is worth knowing before you budget for the fee.

Can you get a VA funding fee refund?

Sometimes. VA refunds the fee if you are later awarded VA disability compensation, and the effective date of that award is before your loan closed. A rating that is only proposed or memorandum after closing does not qualify for a refund. If you are waiting on a disability claim while you buy, tell your lender so they can advise you on the timing.

Can you finance the VA funding fee?

Yes. VA says you can include the funding fee in your loan amount and pay it over time. That means less cash at closing, and it also means you pay interest on it. Ask your lender to show you both versions side by side.

The funding fee is the only cost VA lets you roll into a purchase loan. The appraisal, title insurance, and origination fees still have to be paid at closing. A seller can help with closing costs, but VA caps seller concessions at 4% of the home's reasonable value.

More on VA loans

• Can you use your VA loan again while you still own a home?
• What does full VA entitlement mean, and how do you check yours?
• How to spend your 14 days of house-hunting leave

Frequently asked questions

How much is the VA funding fee in 2026?

VA lists 2.15% of the loan for a first-time user with less than 5% down, and 3.3% for a repeat user with less than 5% down. Both drop to 1.5% with 5% down and 1.25% with 10% down. These rates took effect April 7, 2023.

Who is exempt from the VA funding fee?

Borrowers receiving VA disability compensation, those eligible for it but receiving retirement or active-duty pay instead, surviving spouses receiving DIC, active-duty members with a Purple Heart by closing, and service members with a proposed or memorandum rating before closing.

Can I roll the VA funding fee into my loan?

Yes. It is the only cost VA lets you finance on a purchase loan. You will pay interest on the amount you finance.

Is the VA funding fee refundable?

Only if VA later awards you disability compensation with an effective date before your loan closed. A proposed or memorandum rating after closing does not qualify.

Do National Guard and Reserve members pay a different funding fee?

No. VA lists the same rates for veterans, active-duty members, National Guard, and Reserve.

Buying near Nellis and want to see what the fee does to your numbers? Send me your report date and I will walk through it with you. You can find me at homesbyjrod.com.

The VA figures in this article come from VA.gov and were checked on September 21, 2026. Rates and rules can change, so confirm current numbers with your lender. This is general education, not financial or legal advice.