Who is exempt from the VA funding fee?
Veterans receiving VA disability compensation, those entitled to compensation but receiving service retirement pay instead, surviving spouses receiving DIC, certain Purple Heart recipients, and a few other defined categories. The COE and VA award letters confirm exemption.
Plain-English explanation
Common funding-fee exemptions: 1) veterans rated for service-connected disability compensation; 2) veterans entitled to compensation but receiving retirement pay; 3) Purple Heart recipients on active duty; 4) surviving spouses of veterans who died in service or from service-connected causes (DIC eligibility); 5) certain pre-discharge claimants. The COE shows exemption status. VA disability ratings issued during the loan process can sometimes generate retroactive funding-fee refunds. Subject to VA guidelines.
What can change the answer?
First/subsequent use, down payment percentage, loan type (purchase, IRRRL, cash-out), and exemption status (disability, surviving spouse) drive the fee.
Related
Want the real answer for your VA file?
VA guidelines are the rule. Your COE, entitlement, residual income, property, and Florida costs are what decide the actual answer.
More VA questions on Funding Fee
Educational only. VA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.