H.R. 1627 and Mortgage Funding Fee Waivers

[ren hoek]

Has anyone here had success with obtaining a funding fee waiver with their Proposed Ratings, as this new law purportedly provides for?

On Aug 16, military.com touted this story -
"Funding Fee Waivers Awarded with Pre-Discharge Disability Rating

The VA funding fee is required for most VA loans. However, certain borrowers such as disabled vets and surviving spouses can receive fee waivers after receiving proper documentation from the VA. The new law makes it easier for disabled veterans to now use qualifying pre-discharge disability ratings or memorandum ratings to get VA funding fee waivers. This can eliminate the need for certain veterans to apply for funding fee refunds because they don't have proper waiver documentation at the time of loan closing."

I have a purchase agreement on a house now, and my bank 'USAA' has received the necessary info from the VA, via the 26-8937 (Verification of VA Benefits), however the VA will not update the COE until after I retire and the ratings are put into effect. I am waiting for a definitive answer from the Underwriters, but I am not getting a warm and fuzzy.

Is this just more P.R. bunkum from the govt., or are certain lenders acually putting this into effect?

 

[Jennifer.Duhaine]

OK I just went through this. Upload your proposed findings. I received an except COE. However Navy Federal canceled on my mortgage 3 days prior to closing because I didn't have my awards letter yet. USAA said they would need the same thing. I am going through a separate bank now, and they are holding the house now (luckily my sellers are awesome and we just moved in awaiting my departure from service) but the day I get out and receive the awards letter we will close.

The VA (I went in person) flat out told me he didn't want to hear about anything I was going through. I was not a verteran yet. He would talk to me on 0001 the day I got ou after waiting over an hour to speak with him.

Sorry for my rant, needless to say I'm a little fustrated (this is a new wound just happened last week)......make sure USAA will be able to use your proposed ratings or you will be just as upset as me!!!! But to answer your question, hop on ebenefits upload it and you should have an exempt COE within the hour. Good Luck!

 

[ren hoek]

Jennifer, Thanks for the info! I am very sorry that you had to go through this to find out though. I have been pushing USAA to give a definite answer, and do not have one yet.

I have uploaded my proposed findings to ebenefits, but keep getting the same thing back from the COE people - NON EXEMPT. (by the way 50% DOD and 80% VA) I don't know what's wrong with them.

Will I get my award letter the day after I retire? Or will I have to wait the 30-45 days it takes to process compensation?

Thanks again!