By Ryan Singer, NMLS #1520306 · Updated October 22, 2026Most VA borrowers pay a one-time funding fee instead of monthly mortgage insurance, but many veterans don't pay it at all. Here's the current chart and the exemptions.
VA funding fee chart
From VA's published chart (effective April 7, 2023). Fees are a percentage of the loan amount and can usually be financed.
| Loan type | First use | After first use |
|---|---|---|
| Purchase, less than 5% down | 2.15% | 3.3% |
| Purchase, 5% to less than 10% down | 1.5% | 1.5% |
| Purchase, 10% or more down | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.3% |
| IRRRL (streamline) | 0.5% | |
| Loan assumption | 0.5% | |
Who doesn't pay the funding fee
- Veterans receiving VA compensation for a service-connected disability.
- Veterans eligible for that compensation who receive retirement or active-duty pay instead.
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC).
- Service members with a proposed or memorandum rating before closing that says they're eligible for compensation because of a pre-discharge claim.
- Active-duty service members who provide evidence of a Purple Heart on or before closing.
If you're awarded compensation later with an effective date before your closing, you may qualify for a refund. Always confirm current figures on VA.gov.
Can I finance the fee?
Yes. The funding fee can be paid at closing or added to your loan amount. Financing it increases your loan balance and the interest you pay over time, so I'll show you both ways.
Does the fee affect my IRRRL break-even?
VA excludes the funding fee from the 36-month IRRRL recoupment calculation, but it's still a real cost. Include it in your own decision.
Why work with Ryan Singer
I've been helping families finance homes since 2004, and I lend nationwide through Independence Home Loans (licensed in 46 states + DC). VA loans are the core of my business, but I work with every major program, so you get an honest comparison rather than a single product pitch. Expect plain-language explanations, written side-by-side options, and a loan officer who stays involved from application to closing. You can reach me directly at (602) 741-2370 or (480) 300-7769.
Frequently asked questions
Who is exempt from the VA funding fee?
Veterans receiving or eligible for VA compensation for a service-connected disability, surviving spouses receiving DIC, certain service members with a pre-discharge rating, and active-duty Purple Heart recipients, as listed by VA.
Can I get a refund of the funding fee?
Possibly, if you're later awarded VA disability compensation with an effective date before your closing. Contact your VA regional loan center.
Do I pay the funding fee again on an IRRRL?
An IRRRL has its own 0.5% funding fee unless you're exempt.