The VA funding fee can run anywhere from .5% to 3.3% depending on the borrower and the circumstances. Each veteran using VA home loan benefits must pay the VA funding fee unless he or she is exempt.
The following borrowers may receive a VA funding fee waiver:
- Veterans receiving VA disability compensation
- Veterans qualifying for disability compensation but receiving VA pension/retirement pay instead
- Veterans pre-discharged for disability examination and rating who have been determined by the VA to be eligible to receive compensation
- Veterans who are entitled to disability compensation, but are on active duty
- Surviving spouses of veterans who died in service or from service-connected disabilities
VA funding fee exemption status can be determined via:
- VA Form 26-8937, Verification of VA Benefits, which indicates the borrower’s exempt status
- A copy of the original VA disability rating and documentation of the veteran’s service retirement income (for veterans who choose service retirement pay instead of VA disability compensation)
- Certificate of Eligibility (COE) indicating a borrower’s VA home loan entitlement as a surviving spouse who has not remarried
For more information about VA funding fee waiver, contact a mortgage professional.