VA Funding Fee 2026: Rates, Exemptions, and How to Pay It
Selected VA funding fee rates for purchase, cash-out, and IRRRL loans, the conditions for an exemption, and how financing the fee works. See VA's full table for other loan types.
The VA funding fee is a one-time charge that helps fund the VA home loan program. The percentage depends on the loan type, your down payment on a purchase, and whether you have used the benefit before. The rates below are VA's table effective April 7, 2023, as shown on VA's funding fee page (updated September 22, 2026).
Selected funding fee rates
| Transaction | First use | Later use |
|---|---|---|
| Purchase: under 5% down | 2.15% | 3.30% |
| Purchase: 5% to under 10% down | 1.50% | 1.50% |
| Purchase: 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.30% |
| IRRRL | 0.50% | 0.50% |
Cash-out percentages do not change with a down payment. On a purchase, the fee is computed on the base loan amount after the down payment. This table covers selected transactions only — see VA's page for other loan types and confirm the fee with your lender.
Who may be exempt
- Veterans receiving VA compensation for a service-connected disability
- Veterans eligible for that 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, issued before closing on a pre-discharge claim, showing eligibility for compensation
- Active-duty service members who provide evidence of a Purple Heart on or before closing
Exemption depends on the conditions above, and VA's determination appears on your Certificate of Eligibility. If compensation is later awarded with an effective date before closing, you may be able to request a refund from VA.
Paying or financing the fee
You can pay the fee at closing or, in most cases, finance it into the loan. Financing adds to the principal you pay interest on. Other closing costs still need to be paid or covered through permitted sources.
Sources
Sources checked September 25, 2026 (editorial source check, not professional signoff). Professional review pending for this revision.
About the author
Prepared by the Bolt Home Loans LLC editorial team (NMLS #2784913) for general education. Pages list their sources and a source-check date only where sources were actually checked; a source check is not legal, underwriting, or licensed-professional review. This is general education, not individual loan advice.