They Hope You Forget This VA Fee Rule

This guide explains a key financial strategy for veterans using a VA loan who also have a pending disability claim. Here is an overview of what you need to know:

• The VA Funding Fee: A one-time fee is charged on most VA loans to support the program. Veterans who receive compensation for a service-connected disability are exempt from this fee.
• The Refund Opportunity: If you close on your home while a disability claim is pending, you must pay the fee. However, you can receive a full refund if the VA later grants your disability status with an effective date that is prior to your loan's closing date.
• Strategic Timing: It is crucial to understand that the refund is based on the effective date of your disability, not the date it was awarded. Communicating with your lender and keeping detailed records of your claim are essential for a smooth process.
• Financial Impact: Securing this refund can result in significant savings, potentially amounting to thousands of dollars that can be applied directly to your loan's principal balance.

Read the full blog article here: https://www.iqratemortgages.com/blog/time-your-texas-va-loan-for-a-funding-fee-refund