If you have a VA loan on your Florida home, or you're hoping to take over a seller's low-rate VA loan, Congress may be about to make that more expensive.
This guide explains what the Take Care of America's Veterans Act would change, what it would cost on a typical Florida loan, who is exempt, and how the timing works.
Check Your Florida VA Loan Eligibility
You'll know whether the increase affects you and what to do about it before the Senate votes.
Status as of November 13, 2026: H.R. 9237 passed the U.S. House on November 11, 2026, and goes to the Senate next (its Senate companion is S. 4744). It is not law yet, and today's VA funding fees still apply.
VA Funding Fee Increase at a Glance
- The bill: the Take Care of America's Veterans Act, H.R. 9237, a package of veterans benefits that uses higher VA loan fees to help pay for them
- Streamline refinance (IRRRL): funding fee rises from 0.5% to 1.42% of the loan
- Loan assumption: funding fee rises from 0.5% to 1%
- Buying a home with a VA loan: no change to the purchase funding fee
- Disabled veterans: still exempt from the funding fee
- Guard and Reserve: new VA loan eligibility for some members, with a fee 1 point higher
- Effective date in the bill: October 1, 2026, if it becomes law
What the Bill Changes
Section 104 of the bill rewrites two lines of the VA funding fee table and adds a new path to VA loan eligibility.
| Loan Type | Fee Today | Fee Under H.R. 9237 |
|---|---|---|
| Streamline refinance (IRRRL) | 0.5% | 1.42% |
| Assuming an existing VA loan | 0.5% | 1% |
| Purchase, first use, less than 5% down | 2.15% | 2.15% (no change) |
| Purchase, 5% or 10% down | 1.5% / 1.25% | No change |
| Cash-out refinance | 2.15% / 3.3% | No change |
| New 14-day Guard and Reserve eligibility | Not eligible today | Regular fee plus 1 point |
The new eligibility covers National Guard and Reserve members who aren't otherwise eligible, have served at least 14 days on active duty for training, and completed their entry-level and skill training. A first-time VA buyer in that group putting less than 5% down would pay 3.15% instead of 2.15%.
What the Higher Fees Would Cost
The streamline refinance fee would go up by 0.92% of the loan amount. Here's what that means on common Florida loan sizes.
| Loan Amount | IRRRL Fee Today | IRRRL Fee Proposed | Extra Cost |
|---|---|---|---|
| $300,000 | $1,500 | $4,260 | $2,760 |
| $400,000 | $2,000 | $5,680 | $3,680 |
| $500,000 | $2,500 | $7,100 | $4,600 |
| $600,000 | $3,000 | $8,520 | $5,520 |
Most borrowers roll the fee into the new loan. Financing an extra $3,680 at 6% over 30 years adds about $22 to your monthly payment and leaves you with $3,680 less equity.
The assumption fee would double. A buyer taking over a $400,000 VA loan would pay $4,000 instead of $2,000, and that fee is paid at closing. It can't be added to the loan being assumed.
See If You Qualify for a Florida VA Loan
Who Doesn't Pay the VA Funding Fee
The increase only matters if you owe the fee. These borrowers are exempt today and stay exempt under the bill:
- Veterans receiving VA compensation for a service-connected disability
- Veterans eligible for that compensation who receive retirement or active-duty pay instead
- Surviving spouses receiving Dependency and Indemnity Compensation
- Service members with a proposed or memorandum rating, issued before closing, based on a pre-discharge claim
- Active-duty service members who received the Purple Heart, with proof on or before closing
If the VA later awards you disability compensation with an effective date before your closing, you can ask your VA regional loan center about a refund of the fee you paid.
Florida's disabled veterans get a second break on top of this. Depending on your rating, you can lower or eliminate your property taxes on your homestead. Our guide to the Florida disabled veteran property tax exemption shows what each rating gets.
If You Own a Florida Home With a VA Loan
A VA streamline refinance lowers your rate on an existing VA loan with less paperwork and usually no appraisal. The higher fee doesn't make it a bad deal. It makes the savings take longer to pay off.
Example: You owe $400,000 at 7% and can refinance to 6%. Your principal and interest drops from about $2,661 to about $2,398, saving about $263 a month. With $3,000 in other closing costs, today's $2,000 funding fee means you earn back your costs in about 19 months. Under the proposed $5,680 fee, it takes about 33 months.
The VA requires a streamline refinance to recoup its costs within 36 months, but it leaves the funding fee out of that test. The fee is still a real cost to you, so count it when you decide.
A refinance still makes sense if:
- The rate drop is large enough to cover the costs well before you plan to sell or refinance again
- You're moving from an adjustable rate to a fixed rate
- You plan to stay in the home for several more years
If your current loan is already at a low rate, keep it. A possible fee increase isn't a reason to refinance by itself.
Check Your Florida VA Loan Eligibility
If You Want to Assume a Seller's VA Loan in Florida
Many Florida sellers have VA loans at 2% to 4% from before 2022. VA loans are assumable, and the buyer doesn't have to be a veteran. Taking over that rate can save far more each year than the extra $2,000 the higher fee would add on a $400,000 balance.
What to plan for:
- The equity gap: you pay the difference between the price and the loan balance in cash or with a second loan that meets VA rules
- Qualifying: the servicer approves your credit and income, and processing times vary by servicer
- The seller's entitlement: a seller's VA entitlement stays tied to the loan unless an eligible veteran buyer substitutes their own, which affects the seller's next VA purchase
Our Florida VA loan guide covers assumptions, loan limits, and condo approval in more detail.
When the Higher Fees Would Start
The House-passed version makes the new fees effective October 1, 2026, a date that has already passed. Because the bill isn't law, today's fees still apply to every loan that closes now.
If the Senate passes the bill as written and the President signs it, the VA will issue guidance on how it treats loans that close between October 1, 2026, and the date the bill becomes law. Until then, closing early is not a guaranteed way to keep the lower fee. A rate lock holds your interest rate, not the funding fee.
The Senate could also change the fees or the date before it votes. We'll update this guide when it acts.
What to Do Now
- Check whether you're exempt: your lender can confirm your funding fee status from your Certificate of Eligibility.
- Get your numbers: bring your latest mortgage statement, rate, balance, and how long you plan to stay in the home.
- Compare both fees: ask for a written comparison showing your break-even at today's fee and at the proposed fee.
- Move if the numbers work: if a refinance or assumption makes sense either way, start the application so you're ready to close.
Getting Started
Next Wave Mortgage helps Florida veterans compare a streamline refinance, a cash-out refinance, a VA assumption, or a new VA purchase loan. We'll confirm your funding fee and show you what each option costs.
See If You Qualify for a Florida VA Loan
This guide explains proposed legislation as of November 13, 2026. All loans are subject to credit approval and VA program guidelines.
Ready to Get Started?
Check your eligibility in under 2 minutes. No credit pull, no obligation.
Get our Florida updates in your Google feed
Add Make Florida Your Home as a preferred source to see our rate, grant, and program updates more often in Google Search.