VA funding fees 2026: Charts, Exemptions, Deductions
Mortgages backed by the Department of Veteran Affairs (VA loans) offer affordable and accessible home loans to qualifying military service members.
One way in which VA loans can make home loans more accessible is through lower or zero-down payment options. However, even with zero-down payment options, borrowers are still required to pay a funding fee to help maintain this program for future borrowers. Understanding what goes into your funding fee could help prepare you for the cost of getting your VA loan.
To see what your VA funding fee could be, start your application today.
What are VA funding fees?
VA funding fees are a one-time payment borrowers will pay at closing. VA loans do not require a down payment or mortgage insurance but will require funding fees to help maintain the program.
Borrowers can either pay their VA funding fee in cash at closing on their loan or roll their funding fee into their loan amount. Rolling your funding fee into your loan amount will increase the total amount you borrow.
What determines VA funding fees?
The exact amount you will pay for your VA funding fee is determined by your loan amount, how much of a down payment you make and if this is your first VA loan.
VA funding fees are a percentage of your total loan amount, meaning the larger amount you borrow the higher your funding fee will be. While you do have the option to not make a down payment, if you are able to make a 5% or 10% down payment the funding fee percentage will go down. And finally, if it is your first VA loan, your funding fee will be lower than on future VA loans you get.
2026 VA funding fees chart
Let’s take a look at exactly how your situation could change your VA funding fee when purchasing a home.
Down payment percentage options | First-time VA loan funding fee percentage | Subsequent VA loans funding fee percentage |
No down payment | 2.15% | 3.3% |
5% to 9.9% | 1.5% | 1.5% |
10% and up | 1.25% | 1.25% |
Funding fees for refinance loans (IRRRL)
Funding fees for VA Interest Rate Reduction Refinance Loan (IRRRL) is a standard 0.5% of your new loan amount.
An IRRRL is an option for existing VA loans to help borrowers reduce monthly payments or switch an adjustable-rate mortgage to a fixed-rate mortgage with minimal paperwork. Your funding fee at closing or rolled into your loan will be half a percent of your loan amount.
Funding fees for refinancing (VA cash-out refinance)
Funding fees for a VA cash-out refinance are 2.15% of your loan amount for first VA loans and 3.3% of your loan amount for any future VA loans. VA cash-out refinances will replace your current VA loan with a new VA loan that has a larger amount, giving you the difference in cash.
VA funding fee exemptions
Some of the exemptions for your VA funding fee are:
- Disabled veterans: Borrowers with a service-related disability.
- Purple Heart recipients: Service members who receive a Purple Heart before their loan’s closing date.
- Surviving spouses: Surviving spouses of a veteran who passed away in service or from a service-related disability.
- Pre-discharge claims: Active-duty service members who file for disability benefits 180 to 90 days before separation or retirement.
VA funding fee tax deductions
As of 2026, the funding fee borrowers will pay for the VA loan is tax deductible.
Eligible veterans, service members and surviving spouses could offset some of the cost of purchasing a home by deducting their VA funding fee from their taxes. To take advantage of your tax deduction, make sure you itemize your deductions on Schedule A (Form 1040).
To learn more about this tax deduction, speak with a qualified tax professional.
How to pay VA funding fees
You will pay your VA funding fee at closing or during the life of your loan.
One option you have for paying your funding fee is with a lump-sum at the closing of your VA loan. Your other option is to roll your funding fee into your total loan amount. Rolling your funding fee into your loan amount means you will have to pay interest on your funding fee over the life of your loan.
Ready to start the VA loan process and see what your funding fee will be? Begin your application today.
Rate has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency.
Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. VA Cash-out Refinance not available in Texas. Rate has no affiliation with the US Department of Veterans Affairs. Contact Rate for more information.
