VA Loan Funding Fee 2027 Refund Calculator
Calculate your VA loan funding fee refund for 2027. Estimate disability-rating retroactive refund, IRRRL credit, and exemption amount. Free, private, accurate 2027 VA rates.
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What is the VA loan funding fee?
The VA funding fee is a one-time charge paid to the Department of Veterans Affairs to offset the cost of the VA loan program for taxpayers. It is required on most VA-guaranteed mortgages. For 2027, the funding fee ranges from 1.25% (subsequent-use IRRRL) to 3.6% (subsequent-use purchase with zero down). The fee can be rolled into the loan amount or paid at closing in cash. Veterans with a service-connected disability rating of any percentage are fully exempt from the funding fee.
If you paid the funding fee at closing and later receive a disability rating with an effective date PRIOR to your loan closing, you are entitled to a full refund of the fee. This is one of the most overlooked VA benefits — refunds can exceed $15,000 on a $500,000 loan.
2027 VA funding fee schedule
Updated VA funding fee rates effective through January 2028 (per Public Law 116-23 extension):
- Purchase, first-time use, 0% down: 2.15%
- Purchase, first-time use, 5-10% down: 1.50%
- Purchase, first-time use, 10%+ down: 1.25%
- Purchase, subsequent use, 0% down: 3.30%
- Purchase, subsequent use, 5-10% down: 1.50%
- Purchase, subsequent use, 10%+ down: 1.25%
- IRRRL (streamline refinance): 0.50% flat (first or subsequent)
- Cash-out refinance, first use: 2.15%
- Cash-out refinance, subsequent: 3.30%
Refund eligibility rules
You qualify for a full refund of paid funding fees if ANY of these apply:
- Disability rated before closing. Effective date of disability rating predates loan funding.
- Retroactive disability award. VA later assigns retroactive effective date pre-dating closing.
- Purple Heart recipient. Eligible for exemption regardless of disability rating since 2020.
- Surviving spouse of veteran who died in service or from service-connected cause. Always exempt.
- Dependency and Indemnity Compensation (DIC) recipient. Exempt.
- Active-duty servicemember at closing with proposed/memorandum rating for compensable disability later confirmed retroactively.
How to claim your refund
Contact your loan servicer first — they coordinate with the VA. Provide a copy of your VA disability award letter (showing effective date). Your servicer submits a refund request via the VA Loan Electronic Reporting Interface (LERI). Refunds are typically processed in 30-60 days and either applied to your principal balance (reducing future interest) or sent as a check if the loan is paid off.
If your lender refuses or delays, escalate to the VA Regional Loan Center directly (file VA Form 26-8937). The statute of limitations for refunds is essentially indefinite once a retroactive disability award is granted.
Source: 38 U.S.C. § 3729, VA Lender's Handbook M26-7 Chapter 8, VA Funding Fee Rates updated 2026.