A veteran applying for a VA home loan has a service-connected disability rating of 10% or greater. How does the VA funding fee apply to this veteran?
Correct Answer
B) The veteran is exempt from the VA funding fee entirely
Per VA guidelines, veterans with a service-connected disability rating of 10% or greater are fully exempt from the VA funding fee. This exemption also extends to surviving spouses of veterans who died in service or as a result of a service-connected disability. The exemption applies regardless of down payment amount or whether it is a first or subsequent use of the VA loan benefit.
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Related Topics & Key Terms
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Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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