Disability Rating and the Funding Fee Waiver
Veterans receiving VA disability compensation of any amount are exempt from the VA loan funding fee — often a $6,000–$15,000 closing-cost savings.
Who's exempt
Any veteran receiving VA disability compensation (any rating ≥10%).
Veterans entitled to receive compensation but not currently receiving it (e.g., because they're receiving military retirement pay instead).
Purple Heart recipients on active duty at time of closing.
Surviving spouses of veterans who died in service or from a service-connected disability.
Proving exemption at closing
Your COE will typically show your funding-fee status. If it doesn't, we submit a request via WebLGY.
If you have a pending disability claim, we can hold the file for the outcome — the exemption is retroactive to your effective date.
Refunds if you already paid it
If you paid the funding fee at closing and later received a retroactive disability rating with an effective date on or before your loan closing date, you're owed a refund.
The VA processes these refunds directly — contact us and we'll walk you through the request.
Not sure this applies to you?
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