We won't predict what Congress does with the funding fee, and nobody honestly can. What we can explain is why it sits where it sits. The Blue Water Navy Act removed VA loan limits for veterans with full entitlement starting in 2020, and to offset the cost of that expanded benefit, the same legislation raised the funding fee. Because the higher fee was written into law specifically to pay for the removed limits, there's no obvious near-term mechanism for it to drop without new legislation. It's reasonable to plan around the current fee rather than count on a reduction. How the fee works: - It varies by use. Lower on first use, higher on subsequent use. VA sets the percentages and adjusts them periodically, so confirm the current schedule. - Down payments reduce it. Putting 5% or 10% or more down on a purchase steps the fee down. - Cash-out refinances pay the full no-down-payment fee for first or subsequent use, so the fee bites harder there than on a purchase where you put money down. - Many veterans are exempt. Receiving service-connected disability compensation waives the fee entirely, and that changes the math considerably. Check your exemption status first. The bigger picture is worth remembering too: even with no required down payment, VA loans have historically been among the best-performing loan types in the market, which is part of why the program remains as strong as it is.