Service Related Disability
Funding Fee Exemption
Benefits for disabled veterans dictate that if you are 10% or more disabled due to active military service, you will not be required to pay a funding fee. Those which are required to have a funding fee may lower their fee by putting money down on their VA home purchase.
Form 26-8937 Verification of VA Benefit – Related Indebtedness form will be included in your VA loan package. We will help you complete it and submit it directly to the VA prior to loan closing, when the veteran is either in receipt of VA disability compensation or VA non-service connected pension, or has been rated incompetent by VA.
The law expands the definition of veterans who are in receipt of compensation and thus entitled to a waiver of the VA funding fee. Veterans who are rated eligible to receive compensation as a result of a pre-discharge disability examination and rating will now be considered as receiving compensation as of that date. This means veterans still on active duty awaiting discharge, but who wish to close on a loan before being released from the military, may be entitled to a waiver of the funding fee. Please speak with Todd Abelson to determine your eligibility.
