Real Estate by Debbie Reynolds: Are VA Funding Fees Refundable?

Are VA Funding Fees Refundable?

Certain Circumstances Warrant the Refund of the VA Funding Fee

 

Buying a VA houseThere are a couple of situations that warrant the refund of the VA Funding Fee.

  • The Funding Fee collected was miscalculated or overpaid
  • There was a pending disability compensation claim when the loan was closed and the fee was collected as if the borrower was not exempt
     

VA loans have advantages for some borrowers that are eligible and qualify because they do not require a downpayment. But there are some conditions that apply. See if you qualify for a VA loan here.

 

The VA Funding Fee can range from .5% of the loan amount on a refinance to 3.3 % for subsequent borrowers. This can amount to a lot of money charged to the Veteran that uses his VA loan. The fee is collected at closing and remitted to the Department of Veterans Affairs within 15 days of closing.

If the fee was paid in cash at closing then the Veteran will receive the refund in cash. If it was added to the loan balance then a credit to the loan balance will be made.

Veterans are encouraged to contact their lender or the VA Regional Loan Center to request a refund if it is determined they were entitled to disability compensation retroactively to a date prior to loan closing.

 

Some Veterans or surviving spouses are exempt from paying the Funding Fee at the closing if they meet one of the following conditions:

  • Veteran receives compensation for a service-connected disability
  • Veteran would be entitle to compensation for a service-connected disability if they didn't receive retirement pay
  • Veteran is rated as eligible to receive compensation as a result of a pre-discharge medical examination and rating or based on a pre-discharge review of existing medical records or treatment records that resulted in a memorandum rating
  • Veterans on active duty that are deemed entitled though not yet receiving compensation
  • Surviving spouses of Veterans who died from service related injuries or disabilities

You can see all the regulations in this VA Loan Information Sheet

 

Are VA Funding Fees Refundable? Yes, in certain situations they are.

 

For more information about using a VA loan or to find out if you are exempt from the Funding Fee contact Clarksville TN Real Estate Agent, Debbie Reynolds at 931-320-6730.

 

 Centruy 21 Platinum Properties2130 Wilma Rudolph Blvd.

Clarksville, TN 37040

When you need Real Estate services in Clarksville TN

                  it would be my pleasure to assist you!                             

Debbie Reynolds
"The Real Debbie Reynolds"

Check out all Clarksville TN Real Estate on My Website

                   
                   
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Comment balloon 32 commentsDebbie Reynolds • April 10 2016 08:39PM

Comments

That is some good information Debbie Reynolds  . I love working with Veteran's and being able to show them how thank full we are for their service. Seeing the smiles when we close is a great reward

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) about 2 years ago

We do a lot of VA loans here Debbie Reynolds with an Air Force base being right here. It's good to remember that if a client is not a veteran they may be eligible for a USDA loan which is pretty much a mirror image, no money down and interest rates as low as 1%.

Posted by Bob "RealMan" Timm, Bob Timm, Broker Associate, Alliance Real Estate (Alliance Real Estate - Minot) about 2 years ago

Good morning Debbie, that is great information, thanks for the link to the VA Loan information sheet.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) about 2 years ago

Debbie: Living in a military town, I work with a lot of clients who are getting VA loans. This is really good information for those who are considering a VA loan.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) about 2 years ago

Thank you for the info & the resources. San Diego is a very Navy, Marines & Coast Guard kind of town as you know, so we hail the military here. It's 45% of my business annually; which means alomost 1/2 my loans on offers are VA. The  VA guidelines have softened over my career, which has been a huge benefit for getting offers accepted these days.

Posted by Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D, & Host of Postcards From Success Podcast (Big Block Realty 858.232.8722) about 2 years ago

Debbie Reynolds  good information here for VA mortgages

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) about 2 years ago

Terrific information!  I hope you have a successful week too!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) about 2 years ago

This very good information to share with VA borrowers and their agents.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) about 2 years ago

Debbie this is really good information for veterans and agents as a refresher course. Thank you!

Posted by Anna Banana Kruchten CRB, CRS, Broker, Arizona's Top Banana of Real Estate! (Phoenix Property Shoppe) about 2 years ago

Debbie, this is excellent information for anyone considering a VA loan. There are alot of military families here and we see VA financing quite a bit, such a great option for them to consider.

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group) about 2 years ago

Great Blog Debbie Reynolds.  I've only seen one VA Loan so far here in our community, so that is valuable information as well as links - thanks so much! 

Posted by Allie Angeloni (Long Realty ) about 2 years ago

Debbie, thanks for as very good and comprehensive VA loan discussion. I will book mark. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) about 2 years ago

In the early years of my career (the 1980s), my office was near an Air Force Base. I did a considerable amount of sales that implemented VA loans.  I haven't seen one in several years, due to low inventory in Sacramento, which puts VA buyers at a disadvantage.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) about 2 years ago

Debbie VA Mortgages are an excellent way for a Veteran to purchase a home.  If a mistake is made by the Lender in collecting to much, or in not taking a Veteran's disability into account, the Veteran should make the Lender aware of that and the Lender should make the correction.  If a Lender fails to make the correction after being notified of the mistake, they could find themselves in big trouble with the CFPB.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 2 years ago

Debbie Reynolds - We don't see many VA loans in our local market so this was great information to be aware of just in case a buyer wants to use this type of loan!

Posted by Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com, Tahoe Real Estate Agent Helping Buyers and Sellers (Coldwell Banker, Tahoe City, CA (530) 414-1260) about 2 years ago

This is a very informative post. I don't do many VA loans, but I learned a lot from this post. This should be featured. 

Posted by Debbie Laity, Your Real Estate Resource for Delta County, CO (Cedaredge Land Company) about 2 years ago

I appreciate them so much too Scott Godzyk.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Bob "RealMan" Timm it is a pleasure being able to serve our military by helping them find housing.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

That informaiton sheet is packed with lots of facts on the VA loan, Sybil Campbell.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

I know you sell a lot of homes on VA loans too Anita Clark.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

That is about the same amount of VA loans I do Thomas J. Nelson, Realtor.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Hannah Williams thanks you for stopping by and commenting.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

I had someone this weekend ask this question thus this post evolved, Kristin Johnston, Waukesha County Realtor 414-254-6647.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

I believe this will be one of those posts that will get a lot of traction, Roy Kelley.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Hi Anna Banana Kruchten, many agents don't know all the details and it is good to brush up.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

I know you sell many Homes on VA loans in your area Amanda S. Davidson.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Thanks and you never know when you may need this information, Allie Angeloni.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Thank you Robert (Bob) Gilbert and appreciate the comment.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Myrl Jeffcoat I bet you love selling those higher price homes for cash and conventional.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Thre are so many rules the lenders have to follow and few of them give you any slack George Souto.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

You never know when someone with a VA loan entitlement will come along Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Thank you Debbie Laity I appreciate your comment and support. 

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

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