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VA funding fee · Cluster guide

VA Funding Fee in Florida.
Rates, exemptions, refund rules — the practical breakdown.

The VA funding fee is the one-time cost the VA charges in lieu of mortgage insurance. Most buyers roll it into the loan. Many qualify for an outright exemption. Here's how it works in 2026.

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2026 VA funding fee rates.

Down paymentFirst useSubsequent use
Less than 5%2.15%3.30%
5%-10%1.50%1.50%
10% or more1.25%1.25%
Streamline refinance (IRRRL)0.50%0.50%
Assumption0.50%0.50%

On a $400,000 first-use zero-down loan, the funding fee is $8,600. On a $400,000 subsequent-use zero-down loan, it's $13,200. The fee can be financed into the loan or paid at closing.

VA benefits note: VA programs, eligibility rules, and benefit amounts can change. Verify current eligibility and requirements directly with the VA or the appropriate agency before relying on any specific figure on this page.

Funding fee exemptions.

  • VA disability compensation recipients. Any rating that qualifies you for compensation = exempt.
  • Eligible-but-not-yet-receiving veterans. You've been rated as eligible but haven't started receiving compensation. Lender confirms via your COE.
  • Surviving spouses. Of service members who died in service or from a service- connected disability.
  • Purple Heart recipients (active duty). Active-duty service members who have received the Purple Heart are exempt.

Pending claim timing. If your disability claim is pending and likely to be approved, talk to your lender and your VSO about timing your close. Getting an effective date before closing means you avoid the fee entirely. On a $400k loan that's $8,600 saved.

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VA funding fee questions

Who is exempt from the VA funding fee?

Veterans receiving VA disability compensation (any rating). Veterans rated as eligible to receive disability comp but who haven't yet received it (often a pending claim). Surviving spouses of service members who died in service or from a service-connected disability. Active-duty service members who have received the Purple Heart. If your disability claim is pending and you might qualify, talk to your lender and your VSO about timing the close — getting an effective date before close means you don't pay the fee.

Can the VA funding fee be financed into the loan?

Yes — most veterans roll it into the loan. Trade-off: the fee gets added to your loan balance, you accrue interest on it for 30 years. On a $400k loan, the 2.15% first-use fee is $8,600. Financed at 6%, that costs roughly $9,400 in interest over 30 years (versus $0 if paid at close). Math depends on whether you'd rather preserve cash for closing or pay slightly more long-term.

Is the VA funding fee tax deductible in 2026?

Yes — the VA confirmed deductibility for tax year 2026 if you itemize. If you take the standard deduction, no benefit. Most Florida buyers using a VA loan don't itemize because there's no state income tax to layer onto SALT. Verify with a CPA before relying on the deduction.

How do I get a VA funding fee refund?

If your service-connected disability rating is approved retroactive to before your loan closing, you may qualify for a full refund of the funding fee. File VA Form 26-8937 through your lender. Documentation requires your award letter showing the effective date predating the closing date. Refunds typically process in 60-90 days.

What's the VA funding fee for an assumed loan?

0.5% of the loan balance — much lower than purchase fees. Paid by the buyer (assumer). Same exemptions apply: VA disability comp = exempt. Worth knowing if you're considering buying an assumable VA loan in Tampa from a 2020-2021 vintage with a 2.5-3.5% rate.

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