2026 VA Funding Fee Rates
The VA funding fee is a one-time federal charge required by law to support the Department of Veterans Affairs loan guarantee program, eliminating the need for costly monthly mortgage insurance. The fee varies based on your down payment and whether you have used a VA loan before:
| Down Payment | First-Time Use | Subsequent Use | Disability / Purple Heart Exemption |
|---|---|---|---|
| None ($0 Down / 0%) | 2.15% | 3.30% | 0.00% (Exempt) |
| 5% to 9.9% Down | 1.50% | 1.50% | |
| 10% or More Down | 1.25% | 1.25% |
VA Loan vs. FHA vs. Conventional: Key Differences
For eligible military borrowers, VA loans are nearly always the most affordable financing option because they combine zero down payment with zero monthly mortgage insurance:
| Feature | VA Loan | FHA Loan | Conventional Loan |
|---|---|---|---|
| Minimum Down Payment | 0% ($0 down) | 3.5% | 3% to 5% |
| Monthly Mortgage Insurance | $0 (Never charged) | 0.55% MIP monthly | Monthly PMI (until 20% equity) |
| Upfront Fees | 1.25% - 3.3% VA Funding Fee (waived for disabled) | 1.75% Upfront MIP | None |
| Typical Interest Rate | Lowest (0.25%-0.5% lower) | Competitive | Standard market rate |