VA Loans · 5 min read
What is the VA funding fee in 2026?
July 4, 2026 · Written by Bill Egan, NMLS 7342
Short answer
On a first-time VA purchase with less than 5 percent down, the funding fee is 2.15 percent of the loan. A subsequent use with less than 5 percent down is 3.3 percent. Putting 5 percent down lowers both to 1.5 percent; 10 percent down lowers both to 1.25 percent. Many Veterans with a service-connected disability rating pay $0.
01
Why this comes up
Someone said VA has no fees, then a percentage showed up on a worksheet. You do not know if disability compensation waives it, or why a second-use purchase costs more.
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Where this goes wrong
Cash to close is short because the fee was left out, or a subsequent-use Veteran was quoted the first-use percentage. Disability exemption was assumed and the COE does not show it. The Closing Disclosure changes late, which can push signing past the contract date.
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What we do about it
We use the current VA table, not a slogan. First-use and subsequent-use, down payment, and exemption all change the number. If you receive VA disability compensation, we look for the exemption on the COE. We will not mix a streamline fee with a cash-out fee.
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How to get ready
Confirm the chart at va.gov before you budget. On a first-time purchase with less than 5 percent down, the fee is 2.15 percent; subsequent use with less than 5 percent down is 3.3 percent. Many Veterans with a service-connected rating pay $0. Bring the COE. Do not use a refinance percentage on a purchase.