Who skips the VA funding fee: disability compensation and other exemptions. From The 2 Mortgage Guys at Luminate Bank in Kokomo, nationwide.
Home
VA Loans
Funding Fee Exemption
Service-connected disability compensation, certain Purple Heart recipients, and many eligible surviving spouses can waive the one-time VA funding fee entirely — often saving thousands on a purchase or refinance.
If you are exempt, the one-time VA funding fee is $0 — which can save thousands on a purchase or refinance.
Exemption is not something you “claim” at closing without documentation. Lenders verify it through your COE and, when needed, VA systems.
On a $350,000 zero-down purchase at a 2.3% first-use fee, exemption can remove about $8,050 from the loan amount — lowering both cash-to-close pressure and monthly payment.
Clearing these up early avoids surprise fees on your Closing Disclosure.
Myth
Related guides to help you compare options and move toward pre-approval.
2MG Daily
Recent articles from our blog on VA loans, funding fees, entitlement, and veteran homebuying.
No related blog posts yet. Check back soon for the latest updates.
Ryan & Steve will pull your COE, verify disability or surviving-spouse status, and show you the dollar difference between exempt and non-exempt scenarios.