Reading the VA website it says
"A funding fee must be paid by all veterans using the VA home loan program, except those exempt due to receipt of disability compensation."
I have started the process for VA disability benefits, still have paperwork sitting here to fill out. If I were to go for a VA loan right now would I have to pay the 2.15% loan fee or would I be exempt, or can they hold off until approval is made? I wouldn't mind saving the $6-10k worth of funding fees if possible...
I am told the approval/denial process takes time, so it might be a moot point by time I want to buy a house, cant wait forever to save a few $'s I suppose...

Thoughts?
Thanks
Matt

You will have to already ne on the disability list with VA in order for the funding fee to be waived.

Thanks for the quick reply. That's what I assumed, but wanted to make sure. Guess I need to get myself in gear on finishing the claim paperwork.
Thanks again.
Matt

I am a recent retiree currently drawing VA disability pay with a 90% rating. Would I be exempt from the funding fee? What is the application process and how long does it normally take? Looking to move and purchase a home with my eligability cert! Thanks!

Mike Wilson

Yes. Just let your loan officer know this and they will get it squared away.