Loans & Mortgages

What is VA Funding Fee?

A one-time statutory fee (1.25% to 3.30%) paid on VA mortgages to fund the Department of Veterans Affairs loan guarantee program without requiring monthly PMI.

What is the VA Funding Fee?

Because $0-down VA home loans never charge monthly Private Mortgage Insurance (PMI), the Department of Veterans Affairs charges a one-time VA Funding Fee at closing (which can be paid upfront or rolled into the loan balance).

2026 VA Funding Fee Schedule

First-Time Use ($0 Down): 2.15% of the loan amount.
Subsequent Use ($0 Down): 3.30% of the loan amount.
5% to 9.99% Down Payment: Drops to 1.50% (whether first or subsequent use).
10%+ Down Payment: Drops to 1.25%.
VA IRRRL Streamline Refinance: 0.50%.
100% Exemption ($0 Fee): Veterans receiving VA compensation for a service-connected disability (10%+ rating), Purple Heart recipients on active duty, and eligible surviving spouses pay $0 VA Funding Fee.