VA Loan Funding Fee

msk

msk

PEB Forum Regular Member
I am currently on active duty and about to be Chap 61 retired (40% TDRL). I am in the process of moving, and have applied for a VA loan. The VA Loan Funding Fee is waived for anyone receiving VA Disability Benefits. So, my question...- is it possible to have the mandatory VA funding fee waived or refunded since I have applied and will be receiving VA Disability benefits in a few months?
 
If you have an effective date of award that occurs before the loan closes, you should get a refund.

See www.warms.vba.va.gov/admin26/m26_01/ch08.doc
 
Is the "effective date" ever the date that the injury occured, or is it always the date of separation?
 
It would not likely be the date of injury (though, it is possible that it is near in time). Normally, it will be the day after separation if compensation is applied for within a year of separation. Otherwise, it will normally be the date of the claim. There are some circumstances where the date may be different.
 
I would like to ask a question, If you are medical seperated (Less than 30%) is the fee still waived? ANother question i have is what are the requirements for the funding fee to be waived? Is it based on what you get for seperation or the % of VA benefits you are recieving?
 
Loan Funding Fee Waived

Veterans who have a service related disability might be eligible for a waiver of the VA home loan funding fee, which can equal up to 3.3% of the loan amount. The funding fee is required by the VA as a part of the VA home loan programs and is paid to the VA, not the lender. Veterans who are 10% or more disabled from a service-related injury can potentially have this fee waived.

Veterans who are still on active duty, but are qualified to receive compensation for a service connected disability, may be eligible for the funding fee waiver, even if they close on a home before being released from the military.

You must apply for this waiver - it is NOT automatic. The VA has the final say-so on who is exempted/approved from paying the funding fee.

For further explaination, go to the official VA web site and check out the VA Home Loan sub-section. It explains all of this Federal waiver.

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As an aside, the voters in OREGON HAVE OVERWHELMINGLY APPROVED a LIFETIME OREGON STATE VETERAN HOME LOAN PROGRAM. Just last week, the Oregon voters acted favorably to make changes to the State Constitution that governs the provisions of the State-run program, which is in ADDITION to the FEDERAL program.

I understand a veteran can now have BOTH the state and federal program in Oregon. Concurrently. PLUS, Oregon has a discount property tax relief for disabled Veterans, but Veteran must have a certain minimum disability percentage from the military/VA to qualify for property tax reduction.

You do NOT need to have ever lived in Oregon PRIOR to the Oregon Dept of Veteran Affairs Home Loan NOR have enlisted in Oregon prior to the loan. You only need to be a qualifying Veteran who is currently residing in Oregon. There are no time of residency pre-qualifying times. Just move to Oregon and start renting a place and you're in! (assuming you qualify for the loan). Rates are currently at 5%.

For further information, go to the official Oregon Department of Veteran Affairs website. They have not updated their site yet with the new Lifetime constitutional change (used to be 30 year time limit), but all the rest of the information seems to be current.

v/r,
nwlivewire
 
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