How much is the VA funding fee in 2026?
In 2026 the VA funding fee on a purchase is 2.15% of the loan amount for first-time use with less than 5% down, and 3.3% for later use with less than 5% down. It drops to 1.5% with at least 5% down and 1.25% with at least 10% down. An IRRRL refinance is 0.5%. Veterans who receive VA disability compensation are exempt. These rates have been in effect since April 7, 2023.
Purchase and construction loans
| Down payment | First use | Later use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Refinances and other VA loans
| Loan type | Funding fee |
|---|---|
| Cash-out refinance, first use | 2.15% |
| Cash-out refinance, later use | 3.3% |
| Interest rate reduction refinance (IRRRL) | 0.5% |
| Manufactured home not on a permanent foundation | 1% |
| Loan assumption | 0.5% |
| Vendee loan (buying a VA-owned home) | 2.25% |
| Native American Direct Loan, purchase | 1.25% |
| Native American Direct Loan, refinance | 0.5% |
Examples on a $300,000 loan
- First use, no down payment: 2.15% = $6,450.
- Later use, no down payment: 3.3% = $9,900.
- Any use, 5% down: 1.5% of the loan amount (on a $300,000 loan, $4,500).
- Exempt veteran: $0.
Who does not pay the funding fee
- Veterans receiving VA compensation for a service-connected disability.
- Veterans eligible for that compensation who receive 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, for a pre-discharge claim.
- Active-duty service members who show evidence of a Purple Heart on or before closing.
The exemption is confirmed on the Certificate of Eligibility, so it is worth checking early, especially if a disability claim is pending.
Buying with a VA loan in San Antonio
For entitlement, PCS timing and VA loans for self-employed veterans, see VA loan officer in San Antonio. For limits, see the 2026 San Antonio loan limits.
Sources
Frequently asked questions
Can the VA funding fee be added to the loan?
Yes. The funding fee can be paid at closing or financed into the loan amount.
Do disabled veterans pay the VA funding fee?
Veterans who receive VA compensation for a service-connected disability are exempt from the funding fee.
Is the VA funding fee different in 2026?
No. The current rates have been in effect since April 7, 2023, and VA still lists them as current.
Want to know your exact funding fee?
Send Sarah whether you have used your VA benefit before and whether you receive disability compensation.
Send Sarah Your Scenario Call (619) 254-4067