Veterans with service related disability of 10% or more are typically exempt from the VA funding fee
The big benefit to a VA loan is that the Veteran’s Administration guarantees the lender against loss in the case of loan default by the borrower. Lenders are willing to approve a loan with no down payment or equity in the home, as long as the borrower meets loan guidelines.
Funding fees vary widely, from zero to 3.3% of the loan amount, depending on the veteran’s service and loan type.
Veterans who suffered an injury while in service are entitled to a funding fee exemption. To qualify for this exemption, a borrower must have a ten percent disability rating or higher or currently receive disability payments.
The VA funding fee can be either financed or paid for by cash.-duty military personnel generally qualify after about six months of service.
Reservists and members of the National Guard must wait six years to apply, but if they are called to active duty before that, they gain eligibility after 181 days of service.