Story submitted by Chad Thomas
My client’s name is Eric W. Eric found a home that he wanted to purchase in September. Unfortunately, the VA had not yet made a final decision regarding his service related disability. Because of this, he would be charged 2.15% for a funding fee on his loan. It was almost $5,300 that would be added to the amount he borrowed to purchase his home. Rather than missing out on the home he loved and waiting for his VA rating, I assured him that if the VA subsequently determined that he has a service related disability, we could have the funding fee credited back to his loan. He decided to move forward, and we closed on his purchase in October of 2018. On December 3rd, the VA made the final ruling on his status. It has now been confirmed that he does have a service related disability. This document has been submitted to Eric’s loan servicer and to VA. Within the next 2 weeks, the borrower will receive a credit toward the principal balance of his loan in the amount of 2.15% (roughly $5,300). As a disabled Veteran, the funding fee on VA loans is waived, even if that loan has already been funded prior to the veteran being rated by the VA.
Note: Veteran must have applied for rating prior to loan closing to be eligible for refund.