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2026 Fee Schedule

VA Funding Fee

The VA funding fee is a one-time fee charged by the Department of Veterans Affairs to help keep the VA loan program running. It can be paid at closing or financed into your loan.

2026 VA Funding Fee Schedule

Loan Type
Down Payment
First Use
Subsequent
Purchase or Cash-Out
$0 down
2.15%
3.30%
Purchase or Cash-Out
5%+ down
1.50%
1.50%
Purchase or Cash-Out
10%+ down
1.25%
1.25%
IRRRL (Streamline Refi)
N/A
0.50%
0.50%
Native American Direct
N/A
1.25%
1.25%
Who Is Exempt from the VA Funding Fee?
Veterans with a 10%+ service-connected VA disability rating
Purple Heart recipients who are on active duty
Surviving spouses of veterans who died in service or from service-connected disability
EXAMPLES

Funding Fee Examples

$300K Purchase, First Use
$6,450

2.15% × $300,000
Adds ~$38/mo if financed

$400K Purchase, First Use
$8,600

2.15% × $400,000
Adds ~$50/mo if financed

$400K IRRRL Refi
$2,000

0.50% × $400,000
Adds ~$12/mo if financed

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FAQ

Funding Fee Questions

Yes. Most VA borrowers choose to finance the funding fee into their loan rather than paying it upfront at closing. This means it gets added to your loan balance and paid over the life of the loan. On a $400,000 purchase with first-time use, the 2.15% fee ($8,600) would add approximately $50 per month to your payment.
If you later receive a VA disability rating that would have exempted you from the fee, you can apply for a retroactive refund. The VA will refund the funding fee once the disability rating is confirmed. Contact the VA Regional Loan Center to initiate the refund process.
The VA funding fee is a one-time charge (paid at closing or financed), while PMI on conventional loans is an ongoing monthly charge that continues until you reach 20% equity. Even with the funding fee financed, VA loans are typically cheaper than conventional loans with PMI because the fee is spread over 30 years while PMI adds a larger monthly cost.
No. The VA funding fee goes directly to the Department of Veterans Affairs, not to your lender. The fee helps fund the VA loan program so it remains available for future generations of veterans. Your lender collects the fee at closing and remits it to the VA.
RELATED

Related Resources

VA Eligibility RequirementsAll VA Closing CostsCalculate Your PaymentVA Purchase LoansVA Refinance Options
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EXPLORE

Related Resources

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FAQ

Frequently Asked Questions

For first-time VA loan use with $0 down, the funding fee is 2.15% of the loan amount. With 5% down, it drops to 1.5%. With 10%+ down, it's 1.25%. For subsequent use with $0 down, the fee is 3.3%. IRRRL refinances have a flat 0.5% fee.

Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and surviving spouses receiving Dependency and Indemnity Compensation (DIC) are fully exempt. If you believe you qualify for an exemption, Valley West can verify your status during the loan process.

Yes. The VA funding fee can be rolled into the loan amount rather than paid upfront at closing. For example, on a $400,000 loan with a 2.15% fee ($8,600), your total loan amount becomes $408,600. This avoids any additional out-of-pocket cost at closing.

The VA funding fee may be tax deductible as mortgage interest in the year it is paid. Consult a tax professional for guidance specific to your situation. If the fee is financed into the loan, you may deduct it over the life of the loan.

For a VA IRRRL (streamline refinance), the funding fee is 0.5% of the loan amount regardless of prior use. For a VA cash-out refinance, the fee is 2.15% for first use or 3.3% for subsequent use with $0 down.

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