FinancingLoan_typesMEDIUM
Tara is an eligible Veteran receiving VA compensation for a service-connected disability. She is using a VA-backed purchase loan to buy her home. What is the most accurate statement about the VA funding fee?
Correct Answer
D) She may be exempt from the fee because of her disability-compensation status
VA guidance states that certain borrowers, including those receiving VA compensation for a service-connected disability, do not have to pay the VA funding fee. The fee is not universal, and exemption status matters.
Answer Options
A
She must pay it because every VA borrower owes the fee without exceptionB
She must pay it monthly as a substitute for mortgage insuranceC
She can avoid it only by converting the transaction to an FHA loanD
She may be exempt from the fee because of her disability-compensation statusWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
va_loansfunding_feefee_exemptionservice_connected_disability
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