• Real Estate Select Staff

VA owes disabled veterans refunds

Are you a disabled Veteran? Have you been awarded at least a 10% VA disability rating? Did you purchase a home using your VA Home Loan eligibility after you filed your initial VA disability claim?

In some cases the VA funding fee is waived, or, a refund may be due if you are awarded a VA disability rating of 10% or more, and you filed your disability claim with the VA PRIOR to utilizing your VA Home Loan entitlement.

The VA Funding Fee is a one-time fee paid directly to the Department of Veterans Affairs (VA) for every VA purchase or refinance loan.

The federal government owes at least $189 million to 53,000 disabled veterans who overpaid on their home loans, according to the Department of Veterans Affairs’ inspector general.

When veterans take out a mortgage, they pay a funding fee to the lender that usually costs several thousand dollars. The fee is waived for veterans who receive disability compensation.

The review found that in some instances, certificates of eligibility for exemption were “outdated, incorrect or missing.” In one example cited in the report, a veteran had been receiving disability compensation since March 2011, but it wasn’t correct on his eligibility form, so when he bought a home in September 2017, he was incorrectly charged $5,800.

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