For most Fort Campbell buyers in 2026, the VA funding fee is a one-time charge due at closing and is typically financed into the VA loan. The percentage generally depends on whether this is your first or subsequent use of a VA loan and how much you put down. For general planning, the fee is approximately 2.15% for first use with less than 5% down and 3.30% for subsequent use with less than 5% down.
The VA funding fee is set by federal law, not by Fort Campbell, Tennessee, or Kentucky. Because legislation and VA guidance can change, confirm your current percentage and exemption status with your lender before relying on any estimate.
What is the VA funding fee?
The VA funding fee is a one-time payment that helps support the VA home loan program. Because eligible VA borrowers may purchase with little or no down payment and do not pay monthly private mortgage insurance, the funding fee helps offset the program’s cost to taxpayers.
You can generally pay the fee in either of two ways:
- Pay it in full at closing.
- Finance it into the loan and repay it over time with interest.
For many Fort Campbell buyers using zero-down financing, financing the fee is the more practical option. However, it increases your loan balance, monthly payment, and total interest paid over the life of the mortgage.
Haus Realty & Management’s Clarksville VA loan guide explains how the funding fee fits into the broader purchase process, including preapproval, entitlement, inspections, appraisals, and seller negotiations.
How much is the VA funding fee for a Fort Campbell buyer in 2026?
The following figures are general purchase-loan planning figures based on the current VA funding-fee schedule:
| Down payment | First use of VA loan | Subsequent use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% to less than 10% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
These percentages apply whether you purchase in Clarksville, Tennessee, or Oak Grove, Kentucky. The fee is federal and does not change because a property is closer to one Fort Campbell gate or located on one side of the state line.
The current VA funding fee and closing-cost guidance lists the applicable percentages and identifies the factors used to calculate the charge.
Are National Guard and Reserve borrowers charged a higher funding fee?
The current VA purchase-loan chart groups Veterans, active-duty service members, and National Guard and Reserve members under the same listed purchase-loan schedule. However, older materials, special loan circumstances, or lender calculators may display different figures.
Treat any Guard- or Reserve-specific estimate as a planning figure only. Ask your lender to verify the applicable percentage using your loan type, service history, prior VA use, down payment, and current VA guidance.
Who is exempt from the VA funding fee?
You may be exempt from paying the VA funding fee if you meet one of the qualifying conditions recognized by the Department of Veterans Affairs. Common examples include:
- You receive VA compensation for a service-connected disability.
- You are eligible to receive VA compensation for a service-connected disability but receive retirement or active-duty pay instead.
- You are an eligible surviving spouse receiving Dependency and Indemnity Compensation.
- You are an active-duty service member who provides evidence of receiving a Purple Heart on or before closing.
- You have a qualifying proposed or memorandum rating before closing under applicable VA rules.
A service-connected disability rating of 10% or more is a common planning threshold, but the precise exemption depends on your VA status and documentation. Do not assume that an exemption will be applied automatically.
Your lender must document the exemption. Depending on your situation, that may involve your Certificate of Eligibility, VA award documentation, a memorandum rating, or evidence of a qualifying Purple Heart. Ask the lender to verify the exemption before finalizing your Loan Estimate.
What would the fee be on a $336,900 Fort Campbell-area purchase?
Consider a buyer purchasing a $336,900 primary residence with no down payment and first-time VA use.
Using the general planning figure of 2.15%:
- Purchase price and initial loan amount: $336,900
- Estimated VA funding fee: $336,900 × 2.15% = $7,242.35
- Estimated loan balance if the fee is financed: $344,142.35
The $7,242.35 estimate is not a lender quote. It assumes the buyer is not exempt, makes no down payment, and is using the VA benefit for the first time.
For context, Freddie Mac’s PMMS reported a national average 30-year fixed mortgage rate of 6.95% for the week ending September 17, 2026. At that rate, a $336,900 loan would produce an estimated principal-and-interest payment of approximately $2,230 per month. Financing the estimated funding fee would raise the loan balance to approximately $344,142 and increase principal and interest to roughly $2,278 per month.
That is an estimated difference of about $48 per month, before property taxes, homeowners insurance, HOA dues, and any other costs. The actual VA rate and payment will depend on your lender, credit profile, loan structure, discount points, and other qualifications. Review the Freddie Mac Primary Mortgage Market Survey for the cited national rate data, but do not treat it as a guaranteed VA quote.
Can a seller pay the VA funding fee?
In some transactions, yes. A seller may agree to provide a credit that pays the buyer’s VA funding fee, subject to the loan program, the contract, the appraisal, and lender approval.
The VA distinguishes between ordinary allowable closing costs and seller concessions. Certain seller concessions are generally limited to 4% of the property’s reasonable value. VA guidance identifies payment of the funding fee as an item that may be treated as a concession.
If you want the seller to pay the fee, discuss the request with your lender before submitting the offer. Your lender should calculate:
- The exact funding fee.
- Whether you are exempt.
- Whether the fee will be paid at closing or financed.
- How the credit affects allowable concessions.
- Whether the seller can also pay other closing costs or a rate buydown.
- Whether the appraisal supports the purchase price and proposed credits.
A seller-paid funding fee can preserve cash reserves for moving expenses, inspections, prepaid insurance, repairs, and emergency savings. In a balanced Clarksville market, it may also be more valuable to you than a small purchase-price reduction.
How does entitlement restoration affect the funding fee?
VA entitlement and the funding fee are related, but they are not the same thing.
Your entitlement determines how much of your VA benefit is available to support a loan. If you have used a VA loan before, some entitlement may remain tied to the earlier loan. Selling the property and paying off the loan, obtaining an approved substitution of entitlement, or qualifying for another restoration method may make more entitlement available for a future purchase.
Haus’s Fort Campbell VA buyer’s guide recommends reviewing your Certificate of Eligibility and previous VA loan history with a VA-experienced lender before making an offer.
Restoring entitlement may help you qualify for another VA loan or reduce the need for a down payment. However, restoration does not automatically make your next loan a “first use” loan for funding-fee purposes. If you have previously used the VA benefit, your lender must confirm whether the subsequent-use percentage applies.
Simply moving away from Fort Campbell, renting out a previous property, or receiving new PCS orders does not by itself restore entitlement. Ask your lender to review the payoff, sale, assumption, or restoration documentation required for your circumstances.
Why does an IRRRL have a 0.5% funding fee?
An Interest Rate Reduction Refinance Loan, or IRRRL, is a VA refinance option for borrowers who already have a VA-backed mortgage. The current VA schedule lists a 0.5% funding fee for an IRRRL.
The IRRRL fee is different from the purchase-loan percentages because it is a separate refinance product. It is not based on whether you put 5% or 10% down on the original purchase, and it does not use the first-use versus subsequent-use purchase schedule in the same way.
An IRRRL also does not restore entitlement. It refinances an existing VA loan; it does not release the entitlement tied to the property. Before refinancing, compare the 0.5% fee and other closing costs with your expected interest savings, break-even period, PCS plans, and the possibility that you may sell or rent the home later.
Haus provides buyer resources through its Buying a Home guide, including local guidance for Fort Campbell-area owners evaluating future refinancing decisions.
How should Fort Campbell buyers budget for the fee?
Do not compare a VA mortgage payment with your BAH alone. Your complete housing budget should include:
- Principal and interest.
- The financed funding fee, if applicable.
- Property taxes.
- Homeowners insurance.
- HOA dues.
- Utilities.
- Maintenance and repair reserves.
- Commute and transportation costs.
- Moving expenses and temporary lodging.
- Closing costs not covered by the seller.
Haus’s Fort Campbell BAH budgeting resource emphasizes that BAH should be treated as a planning limit rather than a target for total housing spending. If financing the fee pushes your payment too close to your housing allowance, consider discussing a down payment, seller-paid credit, purchase-price adjustment, or different property with your lender and agent.
The September 2026 Clarksville TN Housing Market Report provides additional local context for buyers evaluating price, inventory, and negotiation conditions.
What should you ask your lender before making an offer?
Before you begin shopping near Fort Campbell, ask:
- Am I exempt from the VA funding fee?
- Is this considered first or subsequent use?
- How much entitlement is currently available?
- Has my prior entitlement been restored?
- What is the exact fee based on my loan amount?
- What will my payment be if the fee is financed?
- Can the seller pay the fee as part of the offer?
- Would a down payment reduce the fee enough to justify using cash?
- Can the seller also pay other closing costs or a rate buydown?
- What happens if VA guidance or legislation changes before closing?
What is the best next step for a Fort Campbell buyer?
Start with a current Certificate of Eligibility, a full lender preapproval, and a payment estimate that includes the funding fee. Then compare Clarksville and Oak Grove properties based on your duty location, gate access, commute, school needs, BAH budget, and expected time in the area.
Haus Realty & Management brings local knowledge of Clarksville, Fort Campbell, and the surrounding Tennessee-Kentucky market. If you are PCSing, using your VA benefit for the first time, restoring entitlement, or evaluating a purchase after a prior VA loan, contact Haus to discuss your buyer-matched home search.
Haus Realty & Management is providing this article for general educational purposes. It is not lending, legal, tax, or financial advice. VA funding-fee rates, exemptions, entitlement rules, lender requirements, mortgage rates, seller-concession limits, and legislation may change. Confirm current figures and eligibility with the Department of Veterans Affairs and a qualified VA-approved lender before making a purchase or refinance decision.
