Do disabled veterans pay the VA funding fee?
No, for veterans receiving VA disability compensation (or entitled to compensation but receiving retirement pay). The exemption applies regardless of the disability percentage as long as the veteran is rated for and receiving compensation.
What this actually means.
VA disability rating thresholds do not control funding-fee exemption — receiving compensation does. A 10% rated veteran receiving disability compensation is funding-fee exempt on the same basis as a 100% rated veteran. Active disability claims that are pending at closing can sometimes generate a refund of the fee if the rating becomes effective on or before the closing date. Subject to VA guidelines.
Where this can move.
First/subsequent use, down payment percentage, loan type (purchase, IRRRL, cash-out), and exemption status (disability, surviving spouse) drive the fee.
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Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with the VA, HUD, or any government agency.