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Va Loan Funding Fee Calculator
US • 2026 • VA Loan Calculator

VA Loan Funding Fee Calculator

Calculate your VA Funding Fee instantly. See how down payments reduce costs and check if you qualify for a $0 fee exemption based on your disability status.

Loan Details

Enter your VA loan information.

Loan Information
Transaction Details
Disability Status
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Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

Funding Fee Results

Your VA Funding Fee calculation.

Loan Amount
$400,000
Applicable Rate
2.15%
VA Funding Fee
$8,600.00
First-time use rate
Financing Options
Pay Upfront$8,600.00
Finance into Loan$408,600
Most Veterans choose to finance the fee, adding it to their loan amount instead of paying upfront.
Transaction Summary
Type:Purchase
Usage:First-Time Use
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How This Calculator Works

Enter your loan amount, down payment (if any), transaction type (Purchase, Cash-out Refinance, or IRRRL), whether this is your first VA loan or subsequent use, and your disability status. The calculator instantly shows your applicable funding fee rate, total fee amount, and whether you qualify for exemption based on your VA disability rating.
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Calculation Methodology

The VA Funding Fee is calculated as a percentage of the loan amount (not the home price). The percentage rate depends on the transaction type (Purchase, Cash-out Refinance, or IRRRL), whether it's your first or subsequent use of the VA benefit, and your down payment amount. If you have a VA disability rating of 10% or higher, you are exempt from the fee entirely. The fee can be paid upfront at closing or financed into your loan amount.

VA Loan Funding Fee Calculator 2026: Calculate Your Savings

Military members and Veterans often ask: 'How much is the VA funding fee?' While VA loans offer the massive benefit of $0 down payment, the Funding Fee is a cost you need to plan for. Use our calculator to determine exactly what you'll owe and see if you qualify for a $0 fee exemption.

What is the VA Funding Fee?

The VA Funding Fee is a one-time payment required by the Department of Veterans Affairs to help sustain the VA home loan program for future generations. Because VA loans don't require Private Mortgage Insurance (PMI), this fee helps offset the cost to taxpayers in the event of a default.

Unlike PMI on conventional loans, which is paid monthly, the VA Funding Fee is a one-time fee that can be paid upfront at closing or rolled into your loan amount. This makes VA loans particularly attractive for Veterans, as they can finance the entire cost of homeownership with no monthly mortgage insurance.

Current VA Funding Fee Rates for 2026

The fee varies based on your down payment and whether it's your first time using the benefit.

  • First-Time Use: If you have never used a VA loan before, your fee is lower (typically 2.15% with no down payment).
  • Subsequent Use: If you have used the VA loan benefit before, the fee increases to 3.30% (unless you put at least 5% down).
  • Down Payment Impact: Putting 5% or 10% down significantly reduces the fee for both first-time and subsequent users.
Transaction TypeDown PaymentFirst-Time UseSubsequent Use
Purchase0% – 4.99%2.15%3.30%
Purchase5% – 9.99%1.50%1.50%
Purchase10% or more1.25%1.25%
Cash-out RefinanceN/A2.15%3.30%
IRRRL (Streamline)N/A0.50%0.50%

Who is Exempt from the VA Funding Fee?

You may not have to pay the fee at all. You are generally exempt if you fall into one of these categories:

  • Service-Connected Disability: You receive VA compensation for a service-connected disability (10% or higher).
  • Surviving Spouse: You are a Surviving Spouse of a Veteran who died in service or from a service-connected disability.
  • Purple Heart Recipient: You are an active-duty service member who has provided evidence of receiving the Purple Heart.
  • Disability Pay Eligible: You are eligible to receive disability pay but are receiving retirement pay instead.

💡 Pro Tip:

If you are currently in the process of applying for disability, let your lender know. If your rating is backdated to before your loan closing, you might be eligible for a refund of the fee!

How Down Payments Reduce Your Funding Fee

While VA loans famously allow $0 down payment, making a down payment can significantly reduce your funding fee:

  • 0% to 4.99% Down: First-time users pay 2.15%, subsequent users pay 3.30%.
  • 5% to 9.99% Down: Both first-time and subsequent users pay 1.50%—a significant savings for repeat users.
  • 10% or More Down: The lowest rate at 1.25% for all users, regardless of usage history.

Example: On a $300,000 loan, a first-time user with 0% down pays $6,450 (2.15%). With 10% down ($30,000), the fee drops to $3,375 (1.25%)—a savings of $3,075.

Financing the VA Funding Fee

Most Veterans choose to finance the funding fee by rolling it into their loan amount. This means:

  • You don't need to pay the fee out of pocket at closing.
  • The fee is added to your loan balance, so you pay it over time with your mortgage payments.
  • You'll pay interest on the fee amount over the life of the loan, but this is often more manageable than a large upfront payment.

Example: If your loan amount is $300,000 and your funding fee is $6,450, you can finance it for a total loan amount of $306,450. Your monthly payment will be slightly higher, but you avoid the upfront cost.

IRRRL (Streamline Refinance) Funding Fee

The Interest Rate Reduction Refinance Loan (IRRRL) has the lowest funding fee at just 0.50%, regardless of how many times you've used your VA benefit. This makes it an excellent option for Veterans who want to refinance to a lower interest rate.

Key Benefits of IRRRL:

  • Lowest funding fee (0.50%)
  • No appraisal required in most cases
  • No income verification needed
  • Can be done with any VA-approved lender
  • No limit on how many times you can use it

First-Time vs. Subsequent Use

Understanding the difference between first-time and subsequent use is crucial for planning your funding fee:

  • First-Time Use: You have never used your VA loan benefit before. This gives you the lowest rates (2.15% for purchases with no down payment).
  • Subsequent Use: You have previously used your VA loan benefit. Rates increase to 3.30% for purchases with less than 5% down, but you can still reduce the fee by making a larger down payment.

Important: If you've paid off a previous VA loan and sold the property, you may be able to restore your entitlement and qualify for first-time use rates again. Check with your lender about entitlement restoration.

Real-World Examples

Here are realistic scenarios showing how the VA Funding Fee works:

  • Scenario 1 - First-Time Purchase, $0 Down: $400,000 loan, first-time use, 0% down = $8,600 funding fee (2.15%).
  • Scenario 2 - Subsequent Purchase, 10% Down: $400,000 loan, subsequent use, 10% down = $4,500 funding fee (1.25%).
  • Scenario 3 - IRRRL Refinance: $350,000 loan, IRRRL = $1,750 funding fee (0.50%).
  • Scenario 4 - Disability Exempt: $400,000 loan, 10%+ disability rating = $0 funding fee (exempt).

Planning Your VA Loan

Use these strategies to minimize your VA Funding Fee:

  • Consider a Down Payment: If you have savings, putting 5% or 10% down can significantly reduce your fee, especially on subsequent use.
  • Check Your Disability Status: If you're eligible for disability compensation, ensure your rating is processed before closing to qualify for exemption.
  • Use IRRRL for Refinancing: If you're refinancing, IRRRL offers the lowest fee at 0.50%.
  • Understand Your Entitlement: Know whether you're using your benefit for the first time or subsequent time, as this affects your rate.
  • Compare Total Costs: While financing the fee avoids upfront costs, calculate the total interest you'll pay over the loan term.

Frequently Asked Questions

Q:Can I roll the VA Funding Fee into my loan?

Yes! Most Veterans choose to finance the fee. This means it gets added to your total loan amount, so you don't have to pay it out of pocket at closing. You'll pay interest on the fee amount over the life of the loan, but this is often more manageable than a large upfront payment.

Q:Does the Funding Fee apply to VA IRRRL (Streamline Refinance)?

Yes, but it is significantly lower. The fee for an Interest Rate Reduction Refinance Loan (IRRRL) is only 0.50%, regardless of how many times you've used the benefit or whether it's your first or subsequent use.

Q:Is the VA Funding Fee tax-deductible?

Tax laws change frequently. While the VA Funding Fee was historically deductible as mortgage interest in some cases, you should consult with a tax professional regarding the current 2026 tax codes and your specific situation.

Q:What if I'm applying for disability but haven't been rated yet?

If you're in the process of applying for disability, inform your lender immediately. If your disability rating is backdated to before your loan closing date, you may be eligible for a refund of the funding fee. Keep all documentation and work with your lender to process the exemption.

Q:How do I know if I'm exempt from the VA Funding Fee?

You're exempt if you receive VA compensation for a service-connected disability rated at 10% or higher, are a surviving spouse of a Veteran who died in service, are a Purple Heart recipient, or are eligible for disability pay but receiving retirement pay instead. Check with your lender to confirm your exemption status.

Q:Does making a down payment reduce my funding fee?

Yes! Making a down payment can significantly reduce your funding fee. With 0-4.99% down, first-time users pay 2.15% and subsequent users pay 3.30%. With 5-9.99% down, everyone pays 1.50%. With 10% or more down, everyone pays just 1.25%—the lowest rate available.

Q:What's the difference between first-time and subsequent use?

First-time use means you've never used your VA loan benefit before, which qualifies you for lower rates (2.15% for purchases with no down payment). Subsequent use means you've used the benefit before, which increases rates to 3.30% for purchases with less than 5% down. However, making a larger down payment (5%+) equalizes the rates.

Q:Can I use my VA loan benefit more than once?

Yes! You can use your VA loan benefit multiple times. However, subsequent uses have higher funding fees unless you make a down payment of 5% or more. If you've paid off a previous VA loan and sold the property, you may be able to restore your entitlement and qualify for first-time use rates again.

Q:What is the funding fee for a cash-out refinance?

For cash-out refinances, the funding fee is 2.15% for first-time use and 3.30% for subsequent use, regardless of down payment. This is the same as purchase loans with 0-4.99% down payment.

Q:How is the VA Funding Fee calculated?

The VA Funding Fee is calculated as a percentage of your loan amount (not the home price). The percentage depends on your transaction type (Purchase, Cash-out Refi, or IRRRL), whether it's your first or subsequent use, and your down payment amount. The fee is then added to your loan amount if you choose to finance it.