The VA Funding Fee in Georgia: What It Costs and Who Gets Exempt
The VA funding fee Georgia veterans pay is a one-time cost — not mortgage insurance — charged at closing or rolled into the loan balance. It funds the VA home loan program so future generations of veterans can use the same benefit you’re using today.
For most Georgia veterans, the funding fee is straightforward. But the rates vary based on how many times you’ve used your VA benefit, how much you put down, and what type of loan you’re getting. And for veterans with a service-connected disability, the fee may not apply at all. This guide covers every rate, every exemption, and every dollar amount you need to know for 2026.
What Is the VA Funding Fee?
The VA funding fee is a one-time fee charged by the Department of Veterans Affairs on most VA-backed home loans. Unlike mortgage insurance — which goes to a private insurer and protects the lender — the VA funding fee goes directly to the VA and helps keep the loan program self-sustaining without requiring ongoing taxpayer funding.
It is not an ongoing monthly charge. You pay it once, either upfront at closing or by rolling it into the loan balance. If you roll it in, it adds a small amount to your monthly payment but requires nothing out of pocket.
2026 Purchase Loan Rates at a Glance
The funding fee for a VA purchase loan depends on two factors: whether it is your first time using a VA loan, and how much you put down. Here are the current 2026 rates:
| Down Payment | First-Time Use | Subsequent Use |
|---|---|---|
| Less than 5% (0% down) | 2.15% | 3.30% |
| 5% to 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Note: Reserve and National Guard members using their VA benefit for the first time also pay 2.15% with no down payment, and 3.30% on subsequent uses — the same rates as active-duty and veteran borrowers since a 2020 law equalized the rates.
2026 Refinance Loan Rates
If you already have a VA loan and want to refinance, the rates are different depending on the type of refinance:
| Refinance Type | First-Time Use | Subsequent Use |
|---|---|---|
| VA Cash-Out Refinance | 2.15% | 3.30% |
| IRRRL (Streamline Refinance) | 0.50% | 0.50% |
The IRRRL — the VA’s Interest Rate Reduction Refinance Loan — carries a low 0.50% fee regardless of how many times you have used your benefit. This is one reason the IRRRL is such an attractive option when rates drop.
What Does the VA Funding Fee Actually Cost in Georgia?
Here is what the 2026 VA funding fee looks like in real dollars on typical Georgia home prices, assuming a first-time VA buyer with no down payment:
| Home Price | First-Time Use (2.15%) | Subsequent Use (3.30%) |
|---|---|---|
| $300,000 | $6,450 | $9,900 |
| $350,000 | $7,525 | $11,550 |
| $400,000 | $8,600 | $13,200 |
| $450,000 | $9,675 | $14,850 |
| $500,000 | $10,750 | $16,500 |
These amounts can be financed into the loan — so a Georgia veteran buying a $400,000 home with no down payment would have a loan balance of $408,600, not $400,000. The monthly impact is modest: on a 30-year loan at 6.10%, financing $8,600 adds roughly $52 per month to the payment.
How to Reduce Your VA Funding Fee
You have two ways to lower the fee you pay: put money down, or qualify for an exemption.
If you put 5% down on a $400,000 home, your fee drops from 2.15% to 1.50% — saving $2,600. At 10% down, it drops to 1.25%, saving $3,600 versus the no-down-payment rate. Whether this tradeoff makes sense depends on your savings and goals, but for veterans who have the cash, it can make the numbers work better.
Who Is Exempt from the VA Funding Fee in Georgia?
The exemption list is shorter than most people realize, but if you qualify, it’s a complete waiver — you pay zero funding fee, regardless of loan amount or down payment.
You are exempt from the VA funding fee if you are:
- A veteran receiving VA compensation for a service-connected disability rated at 10% or higher — this is the most common exemption. Any disability rating from 10% to 100% qualifies.
- A veteran who would be receiving disability compensation but for receipt of active duty or retirement pay — if your disability pay is offset by military retirement pay, you still qualify for the exemption.
- An active-duty service member who has received a Purple Heart — the exemption applies on or after the date of your award, as long as you certify the award before or at closing.
- A surviving spouse receiving Dependency and Indemnity Compensation (DIC) — the unmarried surviving spouse of a veteran who died in service or from a service-connected disability, if they are receiving DIC payments.
- A veteran who has been rated as having a service-connected disability prior to loan closing — even if you are not yet receiving compensation (for example, if your pay is being offset by retirement pay or your claim is approved pre-discharge).
For Georgia veterans at Dobbins Air Reserve Base, Fort Moore, or any installation in the state, this exemption is worth checking carefully before assuming you owe the fee. Many veterans don’t realize their disability rating qualifies them — and lenders don’t always catch it upfront.
Can You Get a VA Funding Fee Refund?
Yes — and this is one of the most overlooked benefits in the entire VA loan program. If you paid a funding fee at closing and later received a retroactive disability rating, you are entitled to a full refund of the fee, even if the rating is approved months or years after your closing date.
This happens more often than you might think. A veteran closes on their home, then files a disability claim that gets approved retroactively to a date before closing. That veteran paid a funding fee they were legally exempt from — and the VA owes them the money back.
A 2025 VA Office of Inspector General report found that 250 veterans between 2021 and 2024 were entitled to funding fee refunds but had not received them. If you believe this applies to you, contact your lender or loan servicer with your VA award letter showing your disability rating. They can submit a refund claim to the VA on your behalf.
How Rolling the Cost Into Your Loan Works
Most Georgia veterans choose to roll the VA funding fee into the loan rather than paying it at closing. This is completely allowed — the VA permits financing of the full funding fee amount, which means your loan balance will exceed the purchase price by the fee amount.
The tradeoff is a slightly higher monthly payment and slightly more interest paid over the life of the loan. But for veterans who want to preserve their cash savings — especially when buying with no down payment — rolling in the fee is the most common and practical choice.
VA Funding Fee vs. FHA and Conventional Costs
It is worth putting the funding fee in context. Yes, it’s a real cost — but compared to the alternatives, the VA loan still wins on total cost for most Georgia buyers.
An FHA loan on a $400,000 purchase charges a 1.75% upfront mortgage insurance premium ($7,000) plus an annual premium of roughly 0.55% ($183/month) that typically never goes away. Over five years, that is $7,000 upfront plus $10,980 in ongoing premiums — a total mortgage insurance cost of nearly $18,000.
A conventional loan with 5% down carries no upfront fee but charges approximately $150–$200/month in PMI until you reach 20% equity. Over five years, that is $9,000–$12,000 in PMI with no upfront offset.
The VA funding fee on the same $400,000 purchase? $8,600 — paid once, rolled in, with nothing monthly. By year two, a VA borrower is already ahead of where an FHA borrower will ever be on insurance costs. By year five, the VA loan has saved $9,000 to $18,000 in mortgage insurance costs alone.
Frequently Asked Questions: VA Funding Fee in Georgia
What is the VA funding fee in Georgia?
The VA funding fee is a one-time fee charged on VA-backed home loans to help sustain the program. In Georgia, the same federal rates apply as everywhere else: 2.15% for first-time buyers with no down payment, 3.30% for subsequent use with no down payment, and lower rates with 5% or 10% down. The fee can be rolled into the loan.
Who is exempt from the VA funding fee in Georgia?
Veterans with a VA-rated service-connected disability of 10% or higher, active-duty Purple Heart recipients, and surviving spouses receiving DIC are fully exempt. If you are exempt, you pay zero funding fee regardless of loan amount or down payment size.
Can I roll the VA funding fee into my loan in Georgia?
Yes. The VA allows you to finance the full funding fee into the loan balance. This means nothing extra out of pocket at closing, but your loan amount and monthly payment will be slightly higher than the purchase price alone.
What is the VA funding fee for a refinance in Georgia?
For a VA cash-out refinance, the fee is 2.15% (first use) or 3.30% (subsequent use). For an IRRRL streamline refinance, the fee is just 0.50% regardless of how many times you have used your VA benefit.
Can I get a refund of the VA funding fee if I receive a disability rating after closing?
Yes. If your disability claim is approved retroactively to a date before your closing, you are entitled to a full refund of the funding fee. Contact your lender or loan servicer with your VA disability award letter and they will submit the refund claim on your behalf.
Does putting money down lower the VA funding fee?
Yes. A down payment of 5% or more reduces the fee to 1.50%, and 10% or more reduces it to 1.25% — for both first-time and subsequent users. On a $400,000 loan, putting 10% down saves $3,600 in funding fee compared to no down payment.
Talk to Georgia Platinum Mortgage Before You Assume You Owe It
The VA funding fee is manageable — and for many Georgia veterans, it may not apply at all. Before you assume you owe the full 2.15% or 3.30%, let us check your eligibility for an exemption. A disability rating you already have, or a pending claim, could save you thousands at closing.
Georgia Platinum Mortgage serves veterans across Cherokee County, Cobb County, and the Atlanta metro. Learn more about VA loan requirements in Georgia or explore every VA loan benefit Georgia veterans can use. Call us or apply online and we will walk through the numbers with you.