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.
Veterans receiving VA compensation for a service-connected disability are generally exempt from the funding fee. Even a 10% rating can qualify for the waiver.
If you have a claim pending and later receive a qualifying rating effective before loan closing, the fee can often be refunded. Tell us early so we document the path.
Active-duty service members awarded the Purple Heart are typically exempt from the funding fee on VA loans.
Surviving spouses of veterans who died in service or from a service-connected disability — and who are eligible for VA home loan benefits — are usually exempt.
Your Certificate of Eligibility is the cleanest way to confirm exemption. We pull or request your COE before locking numbers.
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 1
Service eligibility gets you a VA loan. Disability compensation (or another listed category) is what waives the fee.
Myth 2
Lenders need COE / VA verification. Verbal claims are not enough at underwriting.
Myth 3
Even when financed, removing the fee lowers your total loan balance and payment.
Myth 4
A later award with the right effective date can unlock a refund path — tell us if a claim is in process.
Related guides to help you compare options and move toward pre-approval.
How the one-time fee works when you are not exempt.
Zero down plus a fee waiver can mean the lowest cash path.
Service eligibility, COE, and occupancy basics.
Toggle EXEMPT on the funding fee calculator.
2MG Daily
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Veterans receiving VA compensation for a service-connected disability, certain Purple Heart recipients on active duty, and many eligible surviving spouses are exempt. Your Certificate of Eligibility is the cleanest confirmation.
Yes — receiving compensation for a service-connected disability generally waives the funding fee, including at lower rating percentages. Documentation and COE status still matter for underwriting.
You may close with a fee and later qualify for a refund if the award’s effective date supports it. Tell us early so we track the claim and refund path.
Start with your COE. Lenders may also need award letters or VA verification. Ryan and Steve collect this up front so underwriting does not stall at the end.
Ryan & Steve will pull your COE, verify disability or surviving-spouse status, and show you the dollar difference between exempt and non-exempt scenarios.