VA Funding Fee Rates 2026 in Texas (New Braunfels)

What are VA funding fee rates in 2026 for Texas home buyers?

How is the VA funding fee calculated (and what does it apply to)?

The VA funding fee is a one-time charge on many VA-backed loans. It’s calculated as a percentage of your loan amount, not the home’s purchase price. That distinction matters in real life because your down payment changes the loan amount, and the funding fee changes with it.

Here’s the fast way to think about it in New Braunfels: if you’re buying at $400,000 and you put 0% down, your loan amount is $400,000 and the funding fee percentage applies to that number. If you put 5% down, your loan amount is $380,000, and the percentage applies to $380,000. The fee can often be financed into the loan, which can help preserve cash for inspections, appraisal gap strategy, or moving costs.

One more detail I see trip people up during PCS season: the funding fee is not the same thing as lender fees, title fees, or prepaid items. It’s separate from your rate and your closing-cost negotiation.

When I’m coaching a VA buyer through numbers, I like to separate the conversation into three buckets: the VA funding fee, lender and title closing costs, and prepaid items (taxes and insurance). That keeps you from making the classic mistake of thinking one percentage explains the whole cash-to-close. It also helps you decide what to negotiate and what is simply part of the math.

And since Texas is a title-company-led closing state, your exact fee line items and timing will come from your lender’s Loan Estimate and your title company’s Closing Disclosure. Those two documents are where the guesswork ends.

What are the 2026 VA funding fee rates for purchase loans?

The most common question I get is, “What’s the rate if I’m doing a normal VA purchase with little or no down?” On the VA’s current chart (effective April 7, 2023, last updated January 15, 2026), the purchase and construction rates for Veterans, active-duty service members, and National Guard/Reserve members are: 2.15% for first use with less than 5% down, and 3.30% for subsequent use with less than 5% down. If you’re able to put 5% or more down, the fee is typically 1.50%, and at 10% or more down it’s typically 1.25%.

Market reality in New Braunfels. A lot of VA buyers assume they have to do 0% down because they can. You don’t. Sometimes putting 5% down is a strategic move if it meaningfully lowers the funding fee and strengthens your offer. Other times, keeping your cash is smarter because the home needs a roof tweak, foundation check, or a realistic post-closing repair budget. The “right” move depends on the house and your timeline, not the internet’s idea of a perfect VA loan.

If you’re also negotiating seller concessions, keep the rules straight. VA allows seller concessions, but they’re not unlimited. I wrote a separate breakdown on VA loan seller credits and the 4% rule in New Braunfels because this is one of those details that can make an offer look stronger or weaker without changing the price.

Who is exempt from the VA funding fee (and what about refunds)?

Some buyers don’t owe the VA funding fee at all. The VA lists several exemption scenarios, including Veterans receiving VA compensation for a service-connected disability (and some cases where a buyer is eligible for compensation but is receiving retirement or active-duty pay instead). Certain surviving spouses receiving DIC can also be exempt, and there are specific situations for active-duty Purple Heart recipients when documentation is provided by closing.

This is where I see avoidable stress during a move. A buyer assumes they’re exempt, but their paperwork does not match what the lender can use at closing. Or they pay the fee, then later learn they might qualify for a refund if they’re awarded compensation retroactive to before the closing date. The VA has specific rules here, and your lender will follow what’s on your COE and your verified status.

If your status is in progress, don’t wait until you’re under contract to sort it out. The cleanest plan is to ask your lender what documentation they can actually use by closing, then build your cash-to-close range around the conservative assumption. If the exemption comes through in time, great. If not, you still close without scrambling.

If you’re anywhere close to the line, get your lender involved early and keep your file clean. It’s also a good reason to build a real homebuying plan instead of winging it. If you want a structured checklist built for how VA purchases actually work in Texas, my Texas Veteran Home Buying Plan post is a good starting point, and I also keep a PCS-focused version here: Texas VA Loan + PCS guide.

How does the funding fee change your offer strategy in New Braunfels?

In New Braunfels, your winning offer is usually a mix of price, timelines, and certainty. The funding fee affects certainty because it changes your monthly payment and sometimes your total loan amount if you finance it. That can change your debt-to-income picture, which can change what a lender is willing to approve. I’m not your lender, but I am the person who makes sure your offer terms match what your lender can actually deliver.

Only-Cody moment. The pattern I see with relocating buyers is they focus on the “VA label” and forget the house. In a builder-heavy pocket, you might be competing with incentives that make the numbers look very different. In an older neighborhood, the inspection and repair reality can matter more than whether the fee is 2.15% or 3.30%. I’d rather you understand your true cash plan, your concession ask, and your repair buffer than obsess over a percentage without context.

If you’re trying to decide whether to bring extra cash, ask for concessions, or simply keep your offer clean and move faster, that’s exactly what I help my VA and PCS clients map out before we write the first offer.

Here’s the practical move: before you fall in love with a house, decide what you want your payment comfort zone to be and how much cash you want left after closing for moving, repairs, and life. Then we match neighborhoods, age of home, and offer strategy to that plan. That’s how you avoid the whiplash of changing your budget every time a listing surprises you.

Start with the relocation guide, and if you want to talk through your scenario, call Cody Posey Real Estate at 830.360.5569.

How do you estimate your VA funding fee fast?

1. Identify your loan type (purchase, cash-out refi, IRRRL) and whether this is your first VA use.
2. Estimate your loan amount (purchase price minus down payment). Remember the fee applies to the loan amount, not the price.
3. Apply the VA chart rate that matches your scenario (for many first-use purchases under 5% down, use 2.15%; for subsequent use under 5% down, use 3.30%).
4. Decide with your lender whether you’ll finance the fee into the loan or pay it at closing, then re-check monthly payment and DTI.

In Closing

If you’re PCSing or relocating to New Braunfels and planning to buy in the next 30 to 180 days, the next step is confirming your exact VA funding-fee scenario and building an offer plan that fits your cash and timing.

I’ll coordinate with your lender, translate the numbers into a clear cash-to-close range, and help you write offers that make sense for this market. If you want to talk it through, call Cody Posey Real Estate at 830.360.5569 or use <a href="https://cposeyrealestate.com/contact/">the contact page</a>.

Ready to talk strategy? Cody Posey Real Estate at 830.360.5569.

Sources: U.S. Department of Veterans Affairs: VA funding fee and loan closing costs · VA Home Loans: Certificate of Eligibility (COE) · Texas Real Estate Research Center (Texas A&M): Housing Affordability