Status check: This is a developing legislative story. The details below reflect reporting through mid-September 2026. Confirm current status with the VA or Congress.gov before making decisions.
If you have a VA loan, you may have heard that Congress is looking at raising the funding fee on VA refinances. Here's a plain-language summary of what's on the table.
What is an IRRRL?
The Interest Rate Reduction Refinance Loan (IRRRL) is a VA program that lets eligible veterans with an existing VA loan refinance into a new VA loan, often with a streamlined process.
What's proposed
The Take Care of America's Veterans Act (H.R. 9237 in the House; S. 4744 in the Senate) is a large package of more than 60 bills. One provision would raise the IRRRL funding fee from 0.50% to 1.42%, and the fee for assuming a VA-backed loan from 0.50% to 1%. The additional revenue would help pay for expanded benefits for severely disabled veterans and survivors. Veterans who receive VA compensation for a service-connected disability are generally exempt from the funding fee.
Where it stands
As of mid-September reporting, the fee change had not become law. The House had not passed H.R. 9237 after a July vote to send it back to committee failed 210-211. Congress can change or drop provisions at any time.
The arguments
- Supporters say the IRRRL is optional and the revenue would fund important benefits for catastrophically disabled veterans, while disabled veterans would not pay extra.
- Critics, including mortgage industry groups, say a near-tripling of the fee would raise refinance costs for borrowers who aren't exempt, particularly active-duty service members, and could make some refinances less worthwhile.
What you can do
- Find out whether you're exempt from the funding fee.
- Ask a loan officer to show you the cost of a refinance and how long it would take to recoup it.
- Don't make decisions based on headlines. We don't predict legislation, but we'll help you run the numbers on your own loan.
Questions about your VA benefit?
Talk with a VA loan specialist. No pressure, no obligation.
Get Pre-QualifiedVeteran Mortgage One is a DBA of MortgageOne, Inc., NMLS #898812, and an Equal Housing Lender. This article is for general information only and is not legal, tax, or financial advice. Program rules, fees, and eligibility are set by the VA and lenders and can change. All loans are subject to credit approval, underwriting, and property eligibility requirements.