What exactly changed with VA mortgage fees in the House bill?

Lawmakers removed the planned hike on purchase loans and redirected most increases to IRRRL refinances, with a modest bump for loan assumptions. Disabled veterans remain exempt. The goal is to protect purchase affordability while shifting some program funding toward optional transactions that are more rate sensitive.

Who is exempt from the updated VA mortgage fees?

Disabled veterans with qualifying service-connected conditions, and eligible surviving spouses, remain exempt from the funding fee under the revised proposal. If you believe you qualify, confirm exemption status on your Certificate of Eligibility and ensure your lender reflects it correctly on disclosures and at closing.

How will higher costs affect a VA IRRRL refinance?

Higher fees raise the break-even point. You may need a bigger rate drop or a longer time in the home to make the math work. Compare lender credits, closing costs, and your monthly savings. If the break-even extends beyond your expected timeline, waiting or choosing a different refinance type can be smarter.

Will this change affect Ginnie Mae VA MBS performance?

Likely yes. If IRRRL activity slows, prepayment speeds in Ginnie Mae VA pools could ease, extending duration and supporting premium pricing. The magnitude depends on mortgage rates and how quickly the policy is finalized and implemented. Investors will monitor speeds, coupon performance, and lender behavior as details settle.

Global Market Insights

February 07: House Backs Off VA Purchase Fee Hike; IRRRLs Targeted

ByHuzaifa Zahoor February 7, 2026February 7, 2026

VA mortgage fees took center stage on February 7 after House lawmakers revised a veterans benefits bill. The update keeps purchase loan charges flat, shifts planned increases to VA IRRRL refinance transactions, and adds a small bump to loan assumptions. Disabled veterans remain exempt. For buyers, that removes an immediate cost risk. For lenders and MBS investors, the change may slow refinance speeds and reshape volume mix. According to reporting by House scales back proposed VA mortgage fee hike, here is what this mortgage policy change means for veterans home loans and the market.