Disability Rating = $0 Funding Fee — Are You Exempt?
Veterans with any service-connected disability rating pay zero VA funding fee — that's $6,450–$13,200 in savings on a $300K–$400K loan. Plus: $0 down, no PMI, rates from 5.20%. Find out your exact fee in 60 seconds.
VA Funding Fee Chart 2026: Every Rate, Exemption & Refund Option
The VA funding fee replaces PMI on VA loans. In 2026, it ranges from 0.50% (IRRRL) to 3.30% (subsequent use, $0 down). But veterans with a disability rating pay $0. Here is the complete 2026 rate chart plus how to check exemption and claim a refund.
2.15%
First Use (0% Down)
3.30%
Subsequent (0% Down)
0.50%
IRRRL Refi
$0 Fee
Disability Exempt
⚡ QUICK ANSWER — What AI tools summarize (but can't calculate for you):
The 2026 VA funding fee is 2.15% for first-time use with 0% down and 3.30% for subsequent use. Veterans with any service-connected disability rating pay $0. The fee can be financed into the loan. The complete rate table — including all down payment tiers and refinance types — is below.
VA Funding Fee Chart 2026: Purchase Loans
Rates are a percentage of the total loan amount. The fee applies to all VA purchase loans — unless the borrower qualifies for an exemption (see below).
| Loan Use | Down Payment | Fee Rate | $300K Loan | $400K Loan | $500K Loan |
|---|---|---|---|---|---|
| First Use | 0% down (no down payment) | 2.15% | $6,450 | $8,600 | $10,750 |
| First Use | 5–9.99% down | 1.50% | $4,500 | $6,000 | $7,500 |
| First Use | 10%+ down | 1.25% | $3,750 | $5,000 | $6,250 |
| Subsequent Use | 0% down | 3.30% | $9,900 | $13,200 | $16,500 |
| Subsequent Use | 5–9.99% down | 1.50% | $4,500 | $6,000 | $7,500 |
| Subsequent Use | 10%+ down | 1.25% | $3,750 | $5,000 | $6,250 |
| 🏅 Disability Exemption (any rating) | 0.00% | $0 | $0 | $0 | |
* Rates effective January 1, 2026 per VA Circular 26-22-13. National Guard and Reserve members pay the same rates as regular military since the Blue Water Navy Vietnam Veterans Act (2020).
VA Funding Fee: Refinance Loans 2026
Refinance fees are significantly lower — especially for VA IRRRL (streamline refinance), which has the cheapest fee of any VA transaction.
| Refinance Type | Fee Rate | $300K Loan | $400K Loan | Note |
|---|---|---|---|---|
| VA IRRRL (Streamline Refi) | 0.50% | $1,500 | $2,000 | Lowest possible fee |
| VA Cash-Out Refi (First Use) | 2.15% | $6,450 | $8,600 | Same as purchase |
| VA Cash-Out Refi (Subsequent) | 3.30% | $9,900 | $13,200 | Highest fee |
Pro Tip: VA IRRRL (0.50% fee) is often the best refinance deal in the market. No appraisal, no income docs, and you can roll closing costs into the loan. Compare IRRRL lenders → lower rate in 21 days
💡 Quick VA Funding Fee Calculator
Use this reference table to estimate your funding fee on any loan amount:
| Loan Amount | 1st Use 0% Down (2.15%) | 1st Use 5% Down (1.50%) | 1st Use 10% Down (1.25%) | Sub. Use 0% Down (3.30%) | IRRRL (0.50%) |
|---|---|---|---|---|---|
| $200,000 | $4,300 | $3,000 | $2,500 | $6,600 | $1,000 |
| $300,000 | $6,450 | $4,500 | $3,750 | $9,900 | $1,500 |
| $400,000 | $8,600 | $6,000 | $5,000 | $13,200 | $2,000 |
| $500,000 | $10,750 | $7,500 | $6,250 | $16,500 | $2,500 |
| $600,000 | $12,900 | $9,000 | $7,500 | $19,800 | $3,000 |
| $750,000 | $16,125 | $11,250 | $9,375 | $24,750 | $3,750 |
🎖️ Already Have a Disability Rating? You Pay $0
Verify your exemption in 5 minutes. Veterans United and Navy Federal both have VA disability verification teams. If exempt, you instantly save $6,450–$13,200 on a $300K–$400K loan.
Who is Exempt from the VA Funding Fee? (Full List 2026)
Veterans with Service-Connected Disability
🏅 Most CommonAny veteran receiving VA compensation for a service-connected disability — regardless of the disability rating percentage — is fully exempt. Even a 0% disability rating qualifies if compensation is being paid.
💰 $6,450–$16,500 saved
Surviving Spouses (Dependency & Indemnity Compensation)
💛 SurvivorsSurviving spouses of veterans who died in active service or from a service-connected disability, and who are receiving Dependency and Indemnity Compensation (DIC), are fully exempt.
💰 $6,450–$16,500 saved
Purple Heart Recipients (Active Duty)
🎖️ Purple HeartActive duty service members who have received the Purple Heart are exempt from the VA funding fee. This exemption took effect with the Blue Water Navy Act of 2019.
💰 $6,450–$16,500 saved
Veterans Rating Pending at Closing
⏳ Pending RatingIf a veteran has a VA disability rating claim pending at the time of loan closing and is later approved, they can receive a FULL REFUND of the funding fee paid. Critical: notify your lender about the pending claim before closing.
💰 Refund after approval
Lenders Receiving SCRA Benefits
ℹ️ SCRAService members on active duty who are buying using the Servicemembers Civil Relief Act (SCRA) may also qualify for additional protections, though the standard funding fee applies unless disability exemption conditions are met.
💰 Standard fee applies
💰 How to Claim a VA Funding Fee Refund
If you paid the funding fee and later received a retroactive disability rating covering the period of your loan, you are entitled to a full refund. The average refund is $3,000–$8,000.
File a VA disability claim (or check your existing rating effective date)
Your disability rating must be retroactive to or before your loan closing date.
Get your VA disability award letter showing the effective date
The effective date must predate your loan closing for a refund.
Contact VA Regional Loan Center: 1-877-827-3702
Ask about a funding fee refund and submit your award letter.
Alternatively, contact your lender — they can file on your behalf
Many VA-specialized lenders (Veterans United, USAA) have refund request teams.
Receive your check in 4–8 weeks
VA issues refund checks by mail. Average processing: 30–60 days.
⚠️ Don't leave money on the table: VA estimates that thousands of veterans miss funding fee refunds each year. If you have ANY service-connected disability, check your eligibility. Check with a VA-specialized lender →
VA Funding Fee vs FHA MIP vs Conventional PMI (2026)
| Feature | VA Funding Fee | FHA MIP | Conventional PMI |
|---|---|---|---|
| Upfront Cost | 1.25–3.30% (one-time) | 1.75% upfront | $0 upfront |
| Monthly Cost | $0 (no monthly fee!) | 0.15–0.75%/yr ($41–$187/mo) | 0.17–1.5%/yr ($43–$375/mo) |
| Can Finance into Loan? | Yes ✓ | Yes ✓ | No ✗ |
| Cancellable? | One-time only — no monthly | Only if 10%+ down (11 yrs) | Yes, at 80% LTV ✓ |
| 10-Year Total on $400K Loan | $8,600 (financed) | $8,600 upfront + $22,000 monthly | $0 upfront + $9,600 monthly avg |
| Exemptions Available? | Yes (disability = $0) ✓✓ | No ✗ | No ✗ |
Verdict: VA wins for most veterans — especially those exempt from the funding fee. Even with the fee, no monthly insurance saves $186–$375/month vs FHA or conventional. Over 10 years, VA saves $22,000–$45,000 vs FHA on a $400K loan. Compare VA lenders →
Frequently Asked Questions: VA Funding Fee 2026
Q1.What is the VA funding fee for 2026?
In 2026, the VA funding fee for a first-time use purchase with 0% down is 2.15% of the loan amount. With 5-9.99% down it drops to 1.50%, and with 10%+ down it is 1.25%. For subsequent use (not first VA loan), the fee is 3.30% with 0-4.99% down, and 1.50% or 1.25% with 5%+ or 10%+ down respectively. VA IRRRL streamline refinances charge 0.50%.
Q2.Who is exempt from the VA funding fee?
Veterans receiving VA compensation for a service-connected disability are fully exempt from the VA funding fee. Also exempt: surviving spouses of veterans who died in service or from service-connected disability, active duty service members who have received the Purple Heart, and veterans who would receive disability compensation but are receiving military retirement pay instead.
Q3.Can the VA funding fee be financed into the loan?
Yes. The VA funding fee can be rolled into your loan amount. For example, on a $400,000 purchase with 0% down (first use), the 2.15% fee adds $8,600 to your loan, making the total $408,600. This increases your monthly payment by about $52/month on a 6.5% 30-year loan but eliminates the need to pay cash at closing.
Q4.How do I get a VA funding fee refund?
You may be entitled to a refund if you paid the funding fee but later received a VA disability rating for a service-connected condition that existed at the time of your loan. To claim a refund, contact your VA Regional Loan Center. Refunds are retroactive — you can claim going back years. The average refund is $3,000-$8,000. Start by filing a VA disability claim or contacting the VA at 1-877-827-3702.
Q5.Is the VA funding fee tax deductible?
Yes, the VA funding fee is treated as mortgage points and is generally tax deductible as home mortgage interest. If you financed the fee into your loan, you deduct it over the life of the loan. If you paid it upfront at closing, you may be able to deduct the full amount in the year paid (check with a tax advisor for your specific situation). This deduction can save veterans $500-$2,000 depending on their tax bracket.
Related VA Loan Resources
Best VA Loan Lenders 2026: Top 10 Ranked
Rates from 5.20%, $0 down, no PMI. Navy Federal vs Veterans United — who wins?
VA Loan Closing Costs 2026: Who Pays What
VA non-allowable fees, seller-paid costs, and how to get a $0-out-of-pocket VA loan.
FHA MIP Chart 2026: Compare FHA Insurance Costs
FHA vs VA mortgage insurance — see the exact difference in monthly costs.
VA Seller Concessions 2026: How Much Can Seller Pay?
VA allows up to 4% in seller concessions to pay funding fee + closing costs.
🎖️ You've Earned This Benefit — Use It
$0 down. No PMI ever. Rates from 5.20%. And if you have a disability rating — no funding fee either. Compare top VA lenders in 60 seconds: no SSN, no credit impact.
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