VA Loan Funding Fee Exemptions: Do You Qualify? A Roanoke Veteran's Guide

Short answer: Many Roanoke-area veterans do not have to pay the VA funding fee at all. If you receive VA compensation for a service-connected disability, are a surviving spouse receiving Dependency and Indemnity Compensation (DIC), or are an active-duty Purple Heart recipient, you are generally exempt. That exemption can save you thousands of dollars at closing.

What is the VA funding fee?

The VA funding fee is a one-time charge paid on most VA-backed home loans. It helps keep the VA home loan program running for future veterans, since VA loans require no down payment and no monthly private mortgage insurance. The fee is a percentage of the loan amount. The percentage depends on your down payment and whether you have used your VA entitlement before. It can be paid at closing or rolled into the loan.

Who is exempt from the VA funding fee?

According to the Department of Veterans Affairs, you generally do not pay the funding fee if any of these apply:

• You receive VA compensation for a service-connected disability.
• You are eligible for VA disability compensation but receive retirement or active-duty pay instead.
• You are a surviving spouse of a veteran and receive Dependency and Indemnity Compensation (DIC).
• You are a service member on active duty who provides evidence of having received the Purple Heart.
• You received a proposed or memorandum rating before closing that says you are eligible for disability compensation.

How do I prove my exemption?

Your exemption status appears on your Certificate of Eligibility (COE). Check the COE before you go under contract. If your disability rating is pending, tell your lender early. If a rating is approved after closing and made retroactive, you may be able to request a refund of the fee from the VA.

Why this matters when buying in Roanoke

With the fee waived, more of your budget can go toward the home itself or toward your closing costs. That matters in Roanoke, Salem, Vinton, and Botetourt County, where well-priced homes often draw several offers. Knowing your true cash-to-close before you start touring helps you write a stronger, cleaner offer.

Frequently Asked Questions

Can I use my VA loan more than once?

Yes. VA entitlement can be restored or reused. The funding fee percentage is usually higher on later uses unless you are exempt.

Does a 10% disability rating qualify for the exemption?

Generally yes. Receiving VA compensation for a service-connected disability at any rating typically qualifies. Confirm this on your COE.

Can the seller pay my funding fee?

Seller concessions can often be used toward the funding fee, within VA limits. Ask your lender and agent how to structure this in your offer.

Ready to use your VA benefit in Roanoke?

Robert Kern is a veteran-focused REALTOR® serving the Roanoke Valley. Call or text (540) 505-3345 to set up a buyer consultation. To get pre-approved for a VA loan, visit www.veteranskeyloans.com. You can also see why local buyers choose Robert on the Top Buyer's Agent in Roanoke page.

Robert Kern, REALTOR® | The PREMIERE Group | Real Broker, LLC | Licensed in Virginia. This article is general information, not lending or legal advice. Confirm eligibility with the VA and your lender.