VA Funding Fee Rates 2026
| Service Category | Down Payment | First Use | Subsequent Use | |
|---|---|---|---|---|
| Active Duty/Veterans | 0% | 2.15% | 3.3% | |
| Active Duty/Veterans | 5–9.99% | 1.5% | 1.5% | |
| Active Duty/Veterans | 10%+ | 1.25% | 1.25% | |
| National Guard/Reserves | 0% | 2.4% | 3.3% | |
| National Guard/Reserves | 5–9.99% | 1.75% | 1.75% | |
| National Guard/Reserves | 10%+ | 1.5% | 1.5% | |
| All — Exempt | Any | 0% | 0% |
Veterans receiving VA disability compensation (rated at any percentage), active duty service members who received a Purple Heart, surviving spouses of veterans who died in service or from service-connected disability, and service members with a pre-discharge disability exam. If you're exempt, the savings are significant — on a $400,000 loan at 2.15%, that's $8,600 you don't have to pay.
Financing the fee (rolling it into the loan) means you don't need cash at closing — common choice for veterans using the 0% down option. The trade-off: you pay interest on the fee over the loan term. On a $6,450 fee financed at 6.5% for 30 years, you pay approximately $8,200 total. Paying upfront saves $1,750 if you have the cash — but preserving cash for reserves and other costs often takes priority.
Frequently Asked Questions
Check your VA disability rating if you receive compensation — any rating (10%, 20%, etc.) qualifies for exemption. Your lender will verify exemption status using your Certificate of Eligibility and VA disability information. If you believe you should be exempt but aren't listed, contact the VA. Service members should check if a pending disability claim makes them eligible for exemption before closing.
Yes — the funding fee can be financed into the total loan amount rather than paid at closing. For a $300,000 home with a 2.15% funding fee: $6,450 is added to the loan balance for a total of $306,450. This increases your monthly payment slightly but requires no out-of-pocket fee at closing — important for veterans using 0% down who want to preserve all their savings.