VA loans · fee data parsed from va.gov
The VA Funding Fee — and Who Pays $0
The funding fee is the VA loan's one real upfront cost — a percentage of the loan amount that most borrowers either roll in or pay at closing. It is also the most commonly misunderstood number in the program, because an entire class of veterans is exempt.
By Mario Bailey — U.S. Air Force veteran · current Air National Guard member. Data updated 2026-06-10.
The exemption comes first
Before you calculate anything, check whether you owe this fee at all. Per va.gov, you pay no funding fee if any of these is true:
- You’re receiving VA compensation for a service-connected disability.
- You’re eligible to receive VA compensation for a service-connected disability, but you’re receiving retirement or active-duty pay instead.
- You’re receiving Dependency and Indemnity Compensation (DIC) as the surviving spouse of a Veteran.
- You’re a service member who has received a proposed or memorandum rating before the loan closing date that says you’re eligible to get compensation because of a pre-discharge claim.
- You’re an active-duty member of the Armed Forces, and on or before your loan closing date you provide evidence that you received a Purple Heart.
The first two categories are the big ones: any VA disability compensation — a single 10% rating for tinnitus is enough — zeroes the fee. On a $400,000 first-use loan with nothing down, that exemption is worth $8,600. If you think you have a ratable condition and haven't filed, the order of operations matters: check the rating criteria, and see what a rating would mean with the combined rating calculator. If your compensation is awarded with an effective date before your loan closing, va.gov says you may be eligible for a refund of a fee you already paid.
Calculate your fee
Your funding fee
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SOURCE: VA funding fee rate charts, va.gov · retrieved 2026-06-10
Current rate charts
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Type | Fee |
|---|---|
| Cash-out refinance, first use | 2.15% |
| Cash-out refinance, after first use | 3.3% |
| Interest Rate Reduction Refinancing Loan (IRRRL) | 0.5% |
| Manufactured home (not permanently affixed) | 1% |
| Loan assumption | 0.5% |
SOURCE: VA funding fee rate charts, va.gov · retrieved 2026-06-10 · refreshed automatically by our data pipeline
Frequently asked questions
Who is exempt from the VA funding fee?
Per va.gov: veterans receiving VA compensation for a service-connected disability; veterans eligible for that compensation but receiving retirement or active-duty pay instead; surviving spouses receiving DIC; service members with a proposed or memorandum rating before closing; and active-duty Purple Heart recipients. Any one of these zeroes the fee entirely.
How much is the VA funding fee right now?
For VA-backed purchase and construction loans: 2.15% on first use with less than 5% down (3.3% on subsequent use), dropping to 1.5% with 5% down and 1.25% with 10% or more down. Cash-out refinances: 2.15% first use, 3.3% after. IRRRL streamline refinances: 0.5%.
Can I get the funding fee refunded?
Yes, in one specific case per va.gov: if you are later awarded VA compensation with an effective date retroactive to before your loan closing, you may be eligible for a refund of the fee you paid.
Is the funding fee paid in cash at closing?
Not necessarily. Per va.gov, the fee can be paid at closing or rolled into the loan. Rolling it in means paying interest on it for the life of the loan.