Reviewed by Vatche Saatdjian, VA Loan Expert, 30+ Years
Complete guide to VA funding fees: what they are, who pays them, exemptions for disabled veterans, current rates, and how to reduce or finance the fee.
Understanding the VA funding fee is essential for all veterans using VA home loans. Here's who benefits most from this information.
Not sure which loan is right? Compare VA vs FHA vs Conventional loans
The VA funding fee is a one-time payment that helps offset the cost of the VA loan program to taxpayers. Since VA loans don't require a down payment or private mortgage insurance, this fee helps the VA loan program remain financially sustainable for future generations of veterans.
The good news: You don't pay this fee at closing. It can be rolled into your total loan amount, meaning you finance it over the life of your loan rather than paying thousands upfront.
| Loan Type | Down Payment | First-Time Use | Subsequent Use |
|---|---|---|---|
| Purchase/Construction | Less than 5% | 2.15% | 3.3% |
| Purchase/Construction | 5% to 9.99% | 1.5% | 1.5% |
| Purchase/Construction | 10% or more | 1.25% | 1.25% |
| Cash-Out Refinance | N/A | 2.15% | 3.3% |
| IRRRL (Streamline Refi) | N/A | 0.5% | 0.5% |
Rates shown are current as of 2026. Disabled veterans and certain surviving spouses are exempt from the funding fee regardless of the rates shown.
Loan Amount: $400,000
Down Payment: $0 (0%)
Funding Fee Rate: 2.15%
Funding Fee: $8,600
Financed into loan → adds ~$45/month to payment
Loan Amount: $400,000
VA Disability: 10% or higher
Funding Fee Rate: 0%
Funding Fee: $0
Complete exemption - no fee required
Several categories of veterans and service members are exempt from paying the VA funding fee:
If you're receiving VA disability compensation for a service-connected disability (any rating percentage), you're exempt from the funding fee.
If you're entitled to receive compensation but choose to receive retirement or active duty pay instead, you may still be exempt.
Surviving spouses receiving Dependency and Indemnity Compensation (DIC) are exempt from the funding fee.
Veterans who have been awarded the Purple Heart are exempt from the funding fee.
Important: If you're exempt, you must provide documentation to your lender before closing to avoid being charged the fee. This typically means providing your VA disability award letter or Purple Heart citation.
Find out if you're exempt from the funding fee
If you're not exempt from the funding fee, there are still ways to reduce the amount you pay:
Putting down 5% or more significantly reduces your funding fee rate:
If you have a service-connected condition but haven't filed for disability:
You can roll the funding fee into your loan amount:
When refinancing a VA loan:
Use our free calculator to see your exact funding fee based on your loan amount, down payment, and service history.
Try the CalculatorGet pre-qualified in minutes and find out if you're exempt from the funding fee. Our Nevada VA loan specialists will guide you through the entire process.
While VA loans have a funding fee, they often save you money compared to FHA or conventional loans when you factor in total costs.
One-time funding fee but zero down payment and no monthly PMI saves you significantly over time.
Example Savings: On $400k loan, no PMI saves ~$200/month vs FHA
Learn more about VA loansLow down payment option but includes both upfront MIP and monthly mortgage insurance.
Who it's for: Non-veterans with limited down payment
Learn about FHA loansNo upfront fee but requires down payment and PMI until 20% equity (unless 20% down).
Who it's for: Strong credit + down payment available
Learn about Conventional loans| Cost Component | VA Loan | FHA Loan | Conventional (5% down) |
|---|---|---|---|
| Loan Amount | $400,000 | $385,400 | $380,000 |
| Upfront Fee/MIP | $8,600 (financed) | $7,000 (financed) | $0 |
| Down Payment | $0 | $14,000 | $20,000 |
| Monthly PMI/MIP (5 years) | $0 ($0 total) | $215/mo ($12,900 total) | $190/mo ($11,400 total) |
| TOTAL COST | $8,600 | $33,900 | $31,400 |
Key Insight: VA loans save you $23,000+ over 5 years compared to FHA, even with the funding fee. For disabled veterans (exempt from funding fee), savings are even greater.
Homeowners insurance is required for closing and affects your monthly mortgage payment. The funding fee doesn't include insurance – budget separately for homeowners coverage.
Get homeowners insurance quoteAll VA funding fee rates, exemptions, and regulations on this page are verified against official VA and HUD sources to ensure 100% accuracy for Nevada veterans.
United States Code - VA Loan Funding Fee Authorization
Legal Authority: Federal statute authorizing VA to charge funding fee
Rate Structure: Defines percentage ranges and exemption criteria
Exemptions: Disability-based exemption provisions codified in law
Code of Federal Regulations - Funding Fee Payment Details
Current Rates: 2026 funding fee schedule with exact percentages
First-Time vs Subsequent: Rate differential structure explained
Financing Rules: How fee can be included in loan amount
VA Pamphlet 26-7 - Chapter 8: Funding Fee
Practical Guidance: How lenders calculate and collect funding fee
Exemption Processing: How to document disability exemptions
Refund Procedures: When and how funding fees can be refunded
Department of Veterans Affairs - Current Fee Schedule
2026 Rate Table: Official funding fee percentages by loan type
Down Payment Tiers: How down payment affects fee percentage
Exemption Criteria: Official list of who qualifies for waiver
All funding fee rates, exemption criteria, and calculation methods on this page have been reviewed and verified by CEO Vatche Saatdjian, who has 30+ years of experience processing VA home loans for Nevada veterans.
We cross-reference every rate and exemption detail against current federal law (38 USC § 3729), VA regulations (38 CFR § 36.4313), and official VA guidance to ensure Nevada veterans receive accurate, compliant information. We update this content immediately when VA funding fee schedules change.
| Effective Date | Purchase (0% Down) | IRRRL Refi | Source |
|---|---|---|---|
| January 1, 2024 - Present | 2.15% first-time / 3.3% subsequent | 0.5% | 38 CFR § 36.4313 |
| April 7, 2023 - Dec 31, 2023 | 2.15% first-time / 3.3% subsequent | 0.5% | Public Law 117-333 |
| January 1, 2020 - April 6, 2023 | 2.3% first-time / 3.6% subsequent | 0.5% | 38 USC § 3729(b)(2) |
Note: Rates shown are for first-time use with 0% down payment. Disabled veterans with VA disability rating are exempt from funding fee regardless of rate changes.
Every VA funding fee rate, exemption, and detail is verified against official VA and federal sources to ensure 100% accuracy for Nevada veterans.
Federal law establishing VA loan fees
Authority: Establishes funding fee rates and exemptions by law
Coverage: Fee percentages for purchases, refinances, and subsequent use
Exemptions: Defines disability-related fee waivers
2026 funding fee rates official guidance
Current Rates: Official 2026 VA funding fee schedule
Rate Changes: Annual adjustments and effective dates
Implementation: Lender compliance requirements
Closing cost and funding fee guidance
Fee Collection: How funding fees are calculated and collected at closing
Financing Options: Rules for financing the fee into loan amount
Exemption Verification: Documentation required for disability exemptions
Loan fee regulations and procedures
Administrative Rules: Federal regulations governing fee implementation
Refund Procedures: When fees can be refunded or adjusted
Compliance: Lender obligations and borrower protections
All VA funding fee rates, exemptions, and calculation methods on this page have been reviewed and verified by CEO Vatche Saatdjian, who has 30+ years of experience processing VA home loans for Nevada veterans.
We cross-reference every funding fee detail against current federal law (38 U.S. Code § 3729), VA circulars, and CFR regulations to ensure Nevada veterans receive accurate, up-to-date guidance. We update this content annually when VA publishes new fee schedules.
VA funding fee rates are subject to change. The rates shown on this page reflect the 2026 VA funding fee schedule as published by the Department of Veterans Affairs. Congress may adjust these rates through legislation. Always verify current rates with your VA-approved lender at the time of application. Exemption eligibility is determined by the VA based on disability ratings and other qualifying factors. This content is for educational purposes and does not constitute legal, financial, or tax advice.
Use our calculator to see your exact funding fee amount, then get pre-qualified to start your VA home loan process. If you're a disabled veteran, we'll verify your exemption status.
Best for veterans ready to buy or refinance in 0-90 days. If you're just researching, start with our VA loan document checklist and timeline guide, then apply when ready.