{"id":5536,"date":"2026-03-23T08:06:18","date_gmt":"2026-03-23T14:06:18","guid":{"rendered":"https:\/\/www.veteransloans.com\/resources\/?p=5536"},"modified":"2026-03-23T08:06:21","modified_gmt":"2026-03-23T14:06:21","slug":"how-much-is-the-va-loan-funding-fee-in-2026","status":"publish","type":"post","link":"https:\/\/www.veteransloans.com\/resources\/how-much-is-the-va-loan-funding-fee-in-2026\/","title":{"rendered":"How Much is the VA Loan Funding Fee in 2026?"},"content":{"rendered":"[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]\n

The <\/span>VA funding fee<\/b> is a one-time payment made to the Department of Veterans Affairs. Because VA loans typically require <\/span>no down payment<\/b> and <\/span>no monthly mortgage insurance<\/b>, the funding fee helps offset the cost of the program to U.S. taxpayers.<\/span><\/p>\n

The amount you pay is not a flat rate; it is a percentage of your total loan amount. In 2026, the specific percentage is determined by three primary factors:<\/span><\/p>\n

    \n
  1. Loan Purpose:<\/b> (Purchase vs. Refinance)<\/span><\/li>\n
  2. Down Payment:<\/b> A higher down payment can significantly lower your fee.<\/span><\/li>\n
  3. Prior Use:<\/b> Whether this is your first time using the VA benefit or a “subsequent use.”<\/span><\/li>\n<\/ol>\n

    2026 VA Funding Fee Rates: Purchase & Cash-Out Refinance<\/b><\/h2>\n

    For most Veterans, the standard funding fee for a first-time purchase with 0% down is <\/span>2.15%<\/b>. However, if you have used your benefit before, that rate increases to <\/span>3.3%<\/b> unless you provide a down payment.<\/span><\/p>\n

    Table 1: Purchase and Cash-Out Refinance Rates<\/b><\/h3>\n\n\n\n\n\n\n
    Down Payment<\/td>\nFirst-Time Use<\/td>\nSubsequent Use<\/td>\n<\/tr>\n
    0% \u2013 4.9% Down<\/b><\/td>\n2.15%<\/span><\/td>\n3.3%<\/span><\/td>\n<\/tr>\n
    5% \u2013 9.9% Down<\/b><\/td>\n1.50%<\/span><\/td>\n1.50%<\/span><\/td>\n<\/tr>\n
    10% or More Down<\/b><\/td>\n1.25%<\/span><\/td>\n1.25%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Note:<\/b> Cash-Out Refinances<\/a> are charged at the “0% Down” rates (2.15% for first use, 3.3% for subsequent use) regardless of the equity you have in the home.<\/span><\/p>\n

    VA Funding Fee vs. FHA and Conventional Costs<\/b><\/h2>\n

    Many Veterans ask: <\/span>“If the VA loan has a funding fee, is it really better than a Conventional or FHA loan?”<\/span><\/i> In 2026, the answer is almost always <\/span>yes<\/b>, specifically because the VA loan eliminates the “monthly penalty” of mortgage insurance. To understand the value, you have to look at the <\/span>Total Cost of Housing<\/b> over time, not just the upfront fee.<\/span><\/p>\n

    Table 2: Breaking Down the Three Types of “Insurance”<\/b><\/h3>\n\n\n\n\n\n\n\n
    Feature<\/strong><\/td>\nVA Loan (Funding Fee)<\/strong><\/td>\nFHA Loan (MIP)<\/strong><\/td>\nConventional Loan (PMI)<\/strong><\/td>\n<\/tr>\n
    Upfront Cost<\/b><\/td>\n2.15% (First Use)<\/span><\/td>\n1.75% (Mandatory)<\/span><\/td>\n$0<\/span><\/td>\n<\/tr>\n
    Monthly Cost<\/b><\/td>\n$0<\/b><\/td>\n0.55% \u2013 0.80% annually<\/span><\/td>\n0.30% \u2013 1.50% (Credit-based)<\/span><\/td>\n<\/tr>\n
    Duration<\/b><\/td>\nOne-time only<\/span><\/td>\nLife of the loan<\/b><\/td>\nUntil 20% equity is reached<\/span><\/td>\n<\/tr>\n
    Exemptions<\/b><\/td>\nAvailable for disability<\/span><\/td>\nNone<\/span><\/td>\nNone<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The “Five-Year Cost” Analysis<\/b><\/h3>\n

    Let\u2019s look at a $400,000 home purchase with the minimum down payment for each program in 2026:<\/span><\/p>\n