Am I Exempt from VA Funding Fee?

lindseygirl

Member
Registered Member
I recieve retirement pay from the army in lieu of Va compensation for PTSD . I am rated at 50% disablity . I do not understand the wordind used on the VA webite that lists the criteria for exemption from the funding fee.

My question is:
Am I exempt from the VA funding fee because I have a service connected disablity (combatt) although I recieve my money from the Army and not the Va ?
How do I apply for an exemption from the fee if I am eligable ?

note * I already have my home loan certificate
Thank-you guys
 

Laura

PEB Forum Regular Member
PEB Forum Veteran
This is what I found...

The following persons are exempt from paying the funding fee:
  • Veterans receiving VA compensation for service-connected disabilities.
  • Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
  • Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).
Seems like the middle point would apply to you. Your lender should be able to help with the waiver.
 

Marine32

PEB Forum Regular Member
PEB Forum Veteran
You need to show proof of your VA disability rating to get this expemption. Call the VA and request a certificate of eligibility from them. This document is usually just used to show proof of hireing preference when applying for federal jobs; I showed this document as proof to get my VA fee waived. If you call them and request it, they will know what you are talking about. But I'm sure any proof of your VA rating will suffice for a VA loan. Good luck!
 

Laura

PEB Forum Regular Member
PEB Forum Veteran
From the VA website...

Q: How do I apply for a VA guaranteed loan?

A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.

Q: How do I get a Certificate of Eligibility?

A: Complete a
VA Form 26-1880, Request for a Certificate of Eligibility: You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to the Atlanta Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it's best to provide such evidence.

Q: Can my lender get my Certificate of Eligibility for me?

A: Yes, it's called Web LGY. Most lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.
 

lindseygirl

Member
Registered Member
Thank-you all for responding to my question.
But , I do not have a rating from the Va , I have a rating from the Army. I receive my disability from the Army . Will proof of my combatt related disability from the Army suffice as proof for the Va to have the funding fee waived?
 

Laura

PEB Forum Regular Member
PEB Forum Veteran
Is it a choice that you made to not be rated by the VA? Or has your rating just not come through yet? I believe you need to be in receipt of a VA rating in order for the fee to be waived. Unless there is a reason that you are not rated by the VA, I strongly urge you to do so!!! There are so many benefits to be had. You may also be eligible for CRSC if your rating is determined to be combat related by the VA.

Just as an example regarding monetary compensation- my husband was only receiving $1082/month from the USAF being rated at 50%. Once rated by the VA, he began receiving $3082/month. Now he will be receiving $3082/month from the VA and $609/month from CRSC.
 

Marine32

PEB Forum Regular Member
PEB Forum Veteran
Linseygirl,

You definitely need to file for VA disability compensation ASAP. For one: the DOD will only give you a rating for your unfitting conditions...and the pay is taxable. For two: The VA will rate you on all of your service connected disabilities, therfore, your VA rating will in most cases be higher than the DOD rating... and VA compensation is NOT taxable. If your conditions are combat related you may receive a portion of both, but somebody else will have to explain those issues to you as I am not completely educated on them. Bottom line is by not filing with the VA you are missing out on many, many benefits to include a possible pay increase.
 
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