VA funding fee exemption and refund
If you receive VA disability compensation, you shouldn't pay the VA funding fee. Here's how to make sure it's waived, and how to get it back if you already paid.
No funding fee if you are:
- Receiving VA compensation for a service-connected disability
- Eligible for VA compensation for a service-connected disability but receiving retirement or active-duty pay instead
- Surviving spouse receiving Dependency and Indemnity Compensation (DIC)
- Service member with a proposed or memorandum rating, issued before the loan closing date, saying they are eligible for compensation from a pre-discharge claim
- Active-duty service member who provides evidence, on or before closing, of having received the Purple Heart
Source: VA funding fee and closing costs, page updated October 5, 2026, checked November 10, 2026.
Everyone else: VA’s funding fee chart
| Loan | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| Cash-out refinance | 2.15% | 3.3% |
| IRRRL | 0.5% | |
Rates for loans closed on or after April 7, 2023.
How to make sure your exemption is applied
- Get your Certificate of Eligibility early. Your funding fee status shows on it. VA checks your disability rating when the COE is issued.
- If it doesn’t show you as exempt and you have a rating, give your lender your VA disability award letter or rating decision. The lender sends it to VA for review, before closing.
- Active duty with a Purple Heart? Give your lender the Purple Heart certificate, a DD214 showing the award, or your orders, on or before closing. It doesn’t apply if you’re discharged on or before closing.
- Filing a pre-discharge claim? A proposed or memorandum rating counts only if it’s dated before your closing date.
- Check your Closing Disclosure. If you’re exempt, no VA funding fee should appear on it.
How to ask for a funding fee refund
- Look at the effective date on your rating decision. It has to be before your loan closing date.
- Call the VA Regional Loan Center at 877-827-3702, or contact your mortgage company, and ask for a funding fee refund.
- VA pays you directly. For refunds issued since July 1, 2019, VA sends the money to the Veteran. You can choose to put it toward your loan balance.
Sources: VA funding fee page and VA loan fees page. VA doesn’t publish a processing time.
Good to know
How do I prove I'm exempt from the VA funding fee?
Your Certificate of Eligibility should show it. If it doesn't, your lender can send VA your disability award letter or rating decision before closing.
I closed before my disability rating came through. Can I get the fee back?
Yes, if VA's award has an effective date before your closing date. Call the VA Regional Loan Center at 877-827-3702.
Does a pending disability claim make me exempt?
Not by itself. You're exempt once you're receiving or eligible for compensation, or, for a pre-discharge claim, once you have a proposed or memorandum rating dated before closing.
Do surviving spouses pay the funding fee?
A surviving spouse receiving Dependency and Indemnity Compensation doesn't pay it.
Do Purple Heart recipients pay the funding fee?
Active-duty service members who show proof of a Purple Heart on or before closing don't pay it.
VA benefits resource center · Get your Certificate of Eligibility · VA disability and your home · Your LES and your mortgage
MTG Wholesale is a private mortgage broker. We are not affiliated with or endorsed by the U.S. Department of Veterans Affairs, the Department of Defense or any branch of the military. VA-backed loans are subject to eligibility, lender approval and appraisal. Not an offer of credit.