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  4. VA Loosens Disability Regulations: How This Affects Your VA Loan Funding Fee
Disclaimer: Beginning January 1, 2020, the VA funding fee will be changing to a range of 1.4% – 3.6% based on factors like your down payment or equity amount, your service status and whether this is a first or subsequent use of a VA loan.

The Department of VetVA Loosens Disability Regulations: How This Affects Your VA Loan Funding Feeeran Affairs is making it easier for veterans to qualify for post-traumatic stress disorder (PSTD).  In a new policy that takes effect on Tuesday, noncombat veterans no longer need to provide incident reports, statements from their peers or other evidence in an attempt to prove that they were traumatized by a specific event.  According to Rep. John Hall (D-N.Y.), the VA will now “presume that veterans are telling the truth.”

Additionally, veterans who may not be able to relate their trauma to a specific event may still be able to qualify.  Under the new rule, if a VA psychiatrist diagnoses a veteran with PTSD, they may be eligible for benefits without additional time-consuming qualification requirements.

What does this mean for veterans and their VA loans?

Veterans who were denied PTSD benefits under the old rules are encouraged to reapply.  Anyone who qualifies for PTSD benefits under the new rule, not only will receive retroactive benefits from the date they originally applied, but veteran disability compensation can help you get approved for a VA loan.

Also eligible to receive a funding fee exemption are qualified surviving spouses and active-duty service members who have received a Purple Heart.

Most importantly, those receiving disability in any form can qualify for a VA loan with no funding fee.  The VA loan funding fee can be up to 3% of the total loan amount.  On a $200,000 loan, the funding fee could be as much as $6,000.  Since most people roll the funding fee into their loan, the absence of this fee can reduce the total loan amount and the monthly payment.

The new qualification criteria will hopefully help the many service men and women who would otherwise go without assistance, both psychologically and financially.

This Post Has 5 Comments

  1. So Glad the rules changed for PTSD Claims, but so sad that i just read the following sentence. According to Rep. John Hall (D-N.Y.), the VA will now “presume that veterans are telling the truth.” I am 100% PTSD FROM VIETNAM AND I PLAYED HELL TRYING TO GET MINE.
    It never dawned on me until just now that , IF THE VA WILL NOW PRESUME VETS ARE TELLING THE TRUTH, Then for 45 plus yrs, The Veterans Administration has been PRESUMING that
    Vets were LYING! How to go Dear Uncle Sam, we fight and die for you and you for over 40 years have been calling us lie ers.. Grrrr!

  2. Hi Shirley

    Yes, the VA does waive the funding fee for 10% disability. I know that for a fact. I’m a 10% disabled veteran and I had my funding fee waived when I got my VA loan. Just make sure to let your mortgage banker know so they can prepare the paperwork correctly.

    1. I am an Honorable Veteran and I am on Social Security Disability Income because I pretty suddenly lost my eyesight due to a rare hereditary eye disease during 2001 when I was thirty-one years old. Because I am an Honorable Veteran and todally blind am I eligible to have my V.A. Funding Fee waived? I have a home and I have been thinking about a new home, but I do not want to add the V.A. Funding Fee to my loan again. I will stop thinking about selling my home and moving to another one if I have to pay the extra 3% or so again. Thank you for your help with my question.


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