VA Funding Fee Calculator

VA Funding Fee Calculator: Estimate Your One-Time Charge

The VA funding fee is a one-time payment that helps keep the VA loan program running for future generations of veterans and service members. Unlike conventional loans that require private mortgage insurance, the VA funding fee is typically lower and can be rolled into your total loan amount, meaning you don't have to pay it out of pocket at closing. Our VA funding fee calculator helps you determine exactly how much you'll pay based on your specific situation, whether you're purchasing a home, doing a VA cash-out refinance, or using an IRRRL (Interest Rate Reduction Refinance Loan).

How the VA Funding Fee Works

The funding fee percentage varies depending on several key factors. First-time VA loan users generally pay a lower fee than those who have used their benefit before. The type of loan you're obtaining also matters, whether it's a VA purchase loan, cash-out refinance, or streamline refinance. Additionally, the size of your down payment can significantly reduce your funding fee. For example, putting down 5% or more on a purchase loan reduces the fee to 1.25% for both first-time and subsequent users.

Active duty service members, veterans, and eligible surviving spouses may have different fee structures. VA loan surviving spouse requirements allow certain spouses to use the benefit and potentially qualify for an exemption. National Guard and Reserve members typically pay slightly higher funding fees than those who served on regular active duty. Understanding these distinctions helps you plan your budget more accurately when considering a VA loan.

2026 VA Funding Fee Rates

The VA funding fee rates for 2026 remain unchanged from the prior year. For a first-time purchase loan with no down payment, the fee is 2.15% of the loan amount. Subsequent use with no down payment is 3.30%. With a 5% or more down payment, the fee drops to 1.25% for both first and subsequent use. Cash-out refinances are 2.15% for first use and 3.30% for subsequent use. The IRRRL has the lowest fee at 0.50% for all borrowers, regardless of usage. These rates apply to loans closed on or after January 1, 2026.

Who Is Exempt from the VA Funding Fee

Certain veterans and service members are completely exempt from paying the VA funding fee. Veterans receiving VA disability compensation (10% or higher) are exempt, as are those who would be entitled to compensation but are receiving retirement or active-duty pay instead. Additionally, surviving spouses of veterans who died in service or from service-connected disabilities are exempt from this fee. Purple Heart recipients also qualify for a funding fee exemption. If you believe you qualify for an exemption, you'll need to provide appropriate documentation to your lender, such as your VA disability award letter or Purple Heart citation.

Calculating Your Funding Fee

Our calculator makes it simple to estimate your VA funding fee by asking for basic information about your loan and military service. You'll need to know your loan amount, whether you've used your VA loan benefit previously, your military service category, and, if applicable, the size of your down payment. The calculator then applies the current VA funding fee rates to provide an accurate estimate. For a more complete picture of your monthly payments, you can also use our streamline refinance calculator or explore VA loan limits by county.

Planning Your VA Loan Budget

Knowing your funding fee in advance helps you make informed decisions about your home purchase or refinance. While the fee can be financed into your loan, understanding its impact on your monthly payment and total loan cost is important. Some borrowers choose to pay the funding fee up front to keep their loan amount lower. In contrast, others prefer to finance it to preserve their cash reserves for other expenses like moving costs, home improvements, or emergency savings. If you're comparing loan options, our guide on whether the VA funding fee can be rolled into your loan provides additional details.

Use our VA funding fee calculator as a starting point for your VA loan planning. For a complete picture of your loan costs, consult a VA-approved lender who can provide personalized guidance tailored to your financial situation and homeownership goals. You may also want to review VA closing costs and what a VA funding fee is to fully understand the costs associated with your loan.

Frequently Asked Questions

What is the VA funding fee for 2026?

For 2026, the VA funding fee for a first-time purchase loan with no down payment is 2.15% of the loan amount. Subsequent use with no down payment is 3.30%. With a 5% or more down payment, the fee drops to 1.25% for both first and subsequent use. Cash-out refinances are 2.15% for first use and 3.30% for subsequent use. IRRRLs are 0.50% for all uses.

Who is exempt from the VA funding fee?

Veterans receiving VA disability compensation (10% or higher), surviving spouses receiving Dependency and Indemnity Compensation (DIC), and active-duty service members awarded a Purple Heart are exempt from the VA funding fee. You will need to provide documentation to your lender to qualify for the exemption.

Can the VA funding fee be financed into the loan?

Yes, the VA funding fee can typically be financed into the total loan amount, meaning you do not have to pay it out of pocket at closing. However, financing the fee increases your loan balance and monthly payment. Some borrowers choose to pay it upfront to keep their loan amount lower. Learn more in our guide on rolling the VA funding fee into your loan.

How is the VA funding fee calculated?

The VA funding fee is calculated as a percentage of your total loan amount. The percentage depends on your loan type (purchase, cash-out refinance, or IRRRL), your down payment amount (for purchase loans), whether it is your first or subsequent VA loan use, and your military category (regular military vs. National Guard/Reserves).

Does the VA funding fee apply to IRRRLs?

Yes, but at a much lower rate. The Interest Rate Reduction Refinance Loan (IRRRL) has a funding fee of 0.50% of the loan amount for all borrowers, regardless of first or subsequent use. This is significantly lower than purchase or cash-out refinance fees. For more details, see our VA streamline refinance calculator.