VA Funding Fee 2026: Rates, Waivers, and How to Pay It
The 2026 VA funding fee ranges from 0.5% (IRRRL) to 3.3% (subsequent use cash-out). Here's the full table and every way to reduce or waive it.
The VA funding fee funds the VA loan program itself — it's why the VA can guarantee $0-down loans with no PMI. It applies to every VA loan unless you qualify for a waiver, and the exact percentage depends on loan type, down payment, and whether it's your first VA loan.
2026 funding fee table
- Purchase / cash-out — first use, 0% down: 2.15%
- Purchase / cash-out — first use, 5%+ down: 1.50%
- Purchase / cash-out — first use, 10%+ down: 1.25%
- Purchase / cash-out — subsequent use: 3.30%
- IRRRL streamline (any use): 0.50%
Any VA-rated service-connected disability — even 10% — waives the funding fee entirely. Same for Purple Heart recipients and surviving spouses receiving DIC.
About the author
J.D. served two deployments with the 82nd Airborne before joining the mortgage industry in 2012. He has personally closed over 1,400 VA loans and specializes in complex entitlement scenarios and IRRRL refinances.