va loan funding fee exemption: VA Loan Questions: VA Funding Fee Exemptions for Disabled Veterans
- 07/23/12 09:49 PM
A reader asks, “I was told when I separated from the US Air Force that I was eligible for a VA funding fee refund because I am a 90% disabled vet. Is that true and if so where do I start to get the refund?” The answer to this particular question depends on where the veteran is with two processes–house hunting and the VA disability claims process. For borrowers who are looking for a home, it’s important to discuss VA loan funding fee exemptions with the lender. The borrower who already has VA recognition of his or her service-connected disabilities must … (11 comments)
va loan funding fee exemption: VA Loan Questions: VA Loan Funding Fee Exemptions
- 04/12/12 05:03 PM
Veterans who receive, or are eligible to receive VA disability benefits are also eligible to be declared exempt from paying the VA loan funding fee. That fee is 2.15 percent of the loan amount for no-money-down VA mortgage loans–a substantial savings for the exempt veteran. This is a topic we’ve covered here many times before, but some VA loan applicants still on active duty naturally want to know if they are exempt from paying the funding fee because of service-connected injuries or illnesses. The Department of Veterans Affairs official site says yes, VA borrowers on active duty can under the right … (0 comments)
va loan funding fee exemption: VA Loan Funding Fees and Disabled Vet Status: A Reader Question
- 01/17/12 03:04 AM
Just as there are expenses for appraisals, inspections and other parts of the home loan process, there is also something called a VA Loan Funding Fee. It’s a cost of doing business on a VA home loan. But some borrowers may be exempt from paying the VA Loan Funding Fee, if they receive or are eligible to receive VA compensation for service-connected disabilities or injuries. To qualify for this exemption the veteran must currently have a VA-recognized condition or disability and apply for the exemption–it is not automatic. But what happens if a borrower is in the process of having his … (1 comments)
va loan funding fee exemption: VA Streamlines Funding Fee Exemption Process for VA Loans
- 09/14/11 02:37 AM
Recently we’ve written about VA loan funding fee exemptions–any qualified veteran receiving disability compensation from the Department of Veterans Affairs is exempt from paying the VA loan funding fee. In such cases, the veteran is exempt based on documented, VA-recognized disabilities. When the borrower applies for a VA home loan, the lender may be unaware of the applicant’s exemption, but thanks to recent changes at the Department of Veterans Affairs, starting with all VA Certificates of Eligibility or COE issued on September 11, 2011 and beyond, exempt status is now listed on the COE. According to a VA circular, “By having … (0 comments)
va loan funding fee exemption: VA Offers Compensation Related to Possible Agent Orange Exposure
- 09/13/11 02:15 AM
A recent decision by the VA could mean more Vietnam-era vets are eligible for VA home loans without having to pay VA loan funding fees. The Department of Veterans Affairs recently issued a press release announcing disability benefits for veterans possibly exposed to Agent Orange. According to the press release,”Veterans who served aboard U.S. Navy and Coast Guard ships operating on the waters of Vietnam between January 9, 1962, and May 7, 1975, may be eligible to receive Department of Veterans Affairs disability compensation for 14 medical conditions associated with presumptive exposure to Agent Orange.” The release adds, “An updated list … (1 comments)
va loan funding fee exemption: Claiming Exemption From the VA Loan Funding Fee (Part Two)
- 05/17/11 03:25 AM
In our previous blog post we discussed who is exempt from paying the VA loan funding fee and how to apply for exempt status. Disabled vets receiving or entitled to receive VA compensation for their condition are exempt, as are the surviving spouses of vets who died on active duty or from service-connected medical conditions. A borrower who does not have their exempt status documented yet must fill out and submit VA Form 26-8937, Verification of VA Benefits as soon as possible. The lender needs this form to verify the borrower’s exempt status. But the VA has some exceptions in VA funding fee … (2 comments)
va loan funding fee exemption: How to Claim Exemption from the VA Loan Funding Fee (Part One)
- 05/17/11 03:14 AM
Veterans have plenty of VA benefits, including the GI Bill, VA medical care, and VA home loans. One of the most important VA home loan benefits some veterans are entitled to, besides the loan itself, is exemption from the VA loan funding fee for disabled vets. The funding fee is a percentage of the VA home loan, so it’s easy to see why anyone entitled to the exemption should take advantage of it. But who is considered exempt and how do you qualify for the VA loan funding fee exemption? Disabled veterans getting compensation from the VA, and those entitled to such compensation are … (3 comments)
va loan funding fee exemption: VA Loan Funding Fees for Co-Borrowers: How It's Paid
- 03/03/11 01:54 AM
When a military member searches for a new home, they don’t always set out to find one to purchase by themselves. Military families aren’t the only groups of people that buy property together, and the Department of Veterans Affairs has provisions for borrowers who want to buy a home in varying combinations. Those combinations can include veterans who team to up share their entitlement, vets and non-veteran co-borrowers, even veterans who decide to buy together using only one person’s VA loan benefits. When it comes to paying the VA loan funding fee, the VA has rules to address all of these … (1 comments)
va loan funding fee exemption: VA Funding Fee Exemptions: How Long Does It Take To Verify?
- 01/07/11 02:16 AM
In our last blog posts, we’ve been discussing the VA loan funding fee, who is exempt, and the paperwork needed to request proof of exemption status. VA loan funding fees are not required from veterans who are getting or able to get VA disability compensation. But what does it take in order to get that compensation in the first place? Some house hunters don’t realize how long the VA claims process can take, and may underestimate the amount of time it takes to have their medical conditions evaluated and officially recognized by the VA. Military members who leave the service start … (3 comments)
va loan funding fee exemption: Am I Entitled to a VA Funding Fee Refund?
- 01/07/11 01:27 AM
The VA Funding Fee is how the Department of Veterans Affairs insures the VA home loan program isn’t a large taxpayer burden. Buyers are required to pay the fee unless they are certified as exempt by showing proof of a VA-recognized disability. Those receiving or eligible to receive disability payments are usually exempt, as are qualifying surviving spouses of vets who died on active duty or as a result of VA-recognized conditions related to military service. The VA funding fee is 2.15% of the entire loan amount for no-money-down VA mortgages. It can be a substantial amount for borrowers on tight … (0 comments)
va loan funding fee exemption: VA Loan Funding Fee Exemption Rules: VA Form 26-8937
- 01/06/11 04:30 AM
In our last blog post, we discussed the VA home loan funding fee. VA loan applicants must pay this fee as part of the cost of getting a VA home loan, but some borrowers are exempt. Those exempt include anyone currently or formerly receiving VA disability benefits or eligible to do so. Surviving spouses of some veterans are also eligible if they meet the right requirements. But exemption from the VA loan funding fee, which is 2.15% of the total loan amount for no-money-down VA mortgages, is not automatic. VA guidelines require “A properly completed and signed VA Form 26-8937, Verification … (0 comments)
va loan funding fee exemption: Claiming An Exemption from the VA Loan Funding Fee
- 01/06/11 01:49 AM
The VA Loan Funding Fee is how the Department of Veterans Affairs reduces taxpayer burden on the VA home loan program. The funding fee is 2.15% of the total loan amount for VA borrowers applying for no-money-down VA mortgages, and goes lower for those willing to make a down payment. Some veterans are exempt from paying the funding fee, and recent changes to VA rules has expanded who may claim an exemption. There were previously four categories of people who don’t have to pay a VA funding fee when buying a home with a VA-insured mortgage: 1. Those receiving VA disability … (3 comments)
A reader asks, “I was told when I separated from the US Air Force that I was eligible for a VA funding fee refund because I am a 90% disabled vet. Is that true and if so where do I start to get the refund?”
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