Who Is Exempt From the VA Funding Fee?


Quick Answer

Veterans who receive VA compensation for a disability incurred during service and surviving spouses of veterans who die during service are exempt from the VA funding fee. This includes disabled veterans who receive retirement or active duty pay and spouses of veterans who later die of a service-related disability.

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Full Answer

For veterans who do not qualify for a funding fee exemption, the fee must be paid at closing. It may be paid in cash or financed. The amount of the fee varies based on whether a down payment is made, the borrower's history of VA loans, the type of loan and the borrower's military category.

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