It depends on your down payment and whether it's your first VA loan. As of 2026, first-time use is 2.15% with nothing down (lower with 5% or 10% down), and subsequent use is 3.30% with nothing down. A VA streamline refinance (IRRRL) is just 0.5%. And many veterans pay nothing — those receiving VA disability compensation are exempt. These figures can change, so Sam Timlick, NMLS# 2776469, confirms your exact fee before you commit.
What it is and why it exists
The VA funding fee is a one-time charge that keeps the VA loan program running — it's the reason VA loans need no monthly mortgage insurance, which usually makes them cheaper overall than the low-down-payment alternatives. You can roll it into the loan instead of paying it in cash at closing.
2026 amounts
For a purchase, first-time use is 2.15% with less than 5% down, 1.50% with 5%–9% down, and 1.25% with 10% or more down. Subsequent use (you've used a VA loan before) is 3.30% with less than 5% down, then drops to the same 1.50% and 1.25% tiers when you put money down. A VA IRRRL streamline refinance is 0.5%, and a loan assumption is also 0.5%. These are current 2026 figures and are subject to change.
Who's exempt
You pay no funding fee at all if you receive VA disability compensation (at any rating), and exemptions also apply to certain Purple Heart recipients and eligible surviving spouses. That can save thousands. If you think you may be exempt, I'll verify it on your Certificate of Eligibility.
How it's paid
Most veterans finance the fee into the loan so there's nothing extra out of pocket; you can also pay it at closing, and in some deals a seller can cover it. I'll show you the trade-offs for your numbers. Start with the VA loan overview or check the entitlement guide.