How Much Can You Save If You Have a VA Disability Rating?

The VA funding fee is a one-time charge that can range from 0.5% to 3.3% of the loan amount. However, if you have a VA disability rating (even 10% or lower), you are completely exempt from this fee.

📌 Example Savings for Exempt Veterans in 2025:

Who Qualifies for a Funding Fee Exemption?

You are exempt from the VA funding fee if:
✅ You receive VA compensation for a service-connected disability
✅ You are eligible for VA compensation but receive retirement pay instead
✅ You are a surviving spouse of a Veteran who died in service or from a service-connected disability
✅ You are an active-duty service member who has been awarded the Purple Heart before closing

If your VA disability rating is pending at the time of closing, you may still be reimbursed for the funding fee after approval.

How Do You Claim the VA Funding Fee Exemption?

When applying for your VA Certificate of Eligibility (COE), your lender will check for exemption status. If your disability claim is still in process, you may have to pay the funding fee upfront, but you can apply for a refund once your disability rating is approved.

💡 Tip: If your disability claim is close to completion, it may be beneficial to wait for approval before closing to avoid paying the fee upfront.

Final Thoughts

For veterans with a VA disability rating, the funding fee exemption is a powerful financial benefit, potentially saving $6,000–$25,000 or more, depending on the loan amount. If you’re considering a VA home loan in Colorado Springs or El Paso County, understanding these savings can help you maximize your benefits and keep more money in your pocket.

📢 If you have a VA disability rating and want to use your VA loan benefit, let’s connect! I’ll help you navigate the process to ensure you’re taking advantage of all available benefits.

Connect with Me:

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• Website: www.NicoleStromRealtor.com
• Phone: 719-922-0102

Let’s make your homeownership dreams a reality while maximizing your earned benefits! 🏡 🇺🇸