VA home loans have many benefits, like no down payment requirements or private mortgage insurance (PMI). But in exchange for those benefits, most borrowers pay a VA funding fee. The VA funding fee is a one-time charge required on most VA-backed purchase and refinance loans. It helps keep the VA home loan program running and reduces the burden on taxpayers by offsetting the cost of loan defaults. In this guide, we’ll break down what the VA funding fee is, how much it costs in 2026, who’s exempt from the VA funding fee, and how to calculate it.
What is the VA Funding Fee?
The VA funding fee is a one-time fee charged on most home loans backed by the U.S. Department of Veterans Affairs (VA). Unlike a traditional lender fee, the VA funding fee goes directly to the VA, not your mortgage company. The VA funding fee exists for a few reasons:
It helps fund the VA home loan program
It allows the program to operate without ongoing taxpayer support
