Run your numbers
Estimate only, not an offer or a quote. The fee applies to the loan amount, not the home price. Rates from the VA funding fee rate charts (effective April 7, 2023, unchanged as of July 2026). Confirm your rate and exemption status at va.gov and with your lender.
The official rate chart
Purchase and construction loans (fee applies to the loan amount):
| DOWN PAYMENT | FIRST USE | AFTER FIRST USE |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% to 9.99% | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Refinance loans (down payment doesn't change these rates):
| LOAN TYPE | FIRST USE | AFTER FIRST USE |
|---|---|---|
| Cash-out refinance | 2.15% | 3.3% |
| IRRRL (streamline) | 0.5% | 0.5% |
Straight talk: the difference between tiers is real money. On a $400,000 loan, first use with nothing down is $8,600; subsequent use with nothing down is $13,200; and 5% down cuts either one to 1.5%. If you're a repeat user, the down-payment math deserves a hard look. Source: VA funding fee rate charts at va.gov. A few less common loan types (like non-permanently-affixed manufactured homes and loan assumptions) have their own rates on the same VA page.
Who doesn't pay it
Per VA, you're exempt from the funding fee if you're receiving VA compensation for a service-connected disability, you're an eligible surviving spouse, or you've received the Purple Heart. Your lender verifies exemption through your Certificate of Eligibility. According to VA, more than half of veterans who obtained a VA-guaranteed home loan since 2021 were exempt.
If your disability claim is still pending at closing, you generally pay the fee upfront; if VA later awards compensation with an effective date before your closing date, you can seek a refund. Confirm the specifics with VA and your lender.
Keep going
The funding fee is one line of the bigger decision. These free StandWatch pages cover the rest: