You might not know that the VA charges you a "funding fee" when you use a VA home loan. The fee is required by law and is used by the department to offset the taxpayers' cost of offering the benefit. This funding fee can range from 1.25% to 2.4% of the loan value for first-time homebuyers. But there is a little-known exemption to this rule. Veterans who have been awarded a VA disability rating are exempt from the funding fee. This means that even if you are rated at 0% disability, you are exempt from paying that fee. Surviving spouses of veterans who died in service or as a result of a VA-rated disability are also eligible for this exemption. Now the VA is notifying veterans in their home loan welcome that they may qualify for the exemption. Read more on Military.com.
VA Now Notifying Vets Directly of Home Loan Funding Fee Exemption
