#Middlebury #Veterans
Did you buy a home in the past 20 years using the Department of Veterans Affairs home loan program? And did you then have a change in your disability rating? If so, you might be due a refund of the funding fee.
The VA’s Loan Guaranty Service has found 130,000 cases where there was a clerical glitch or change in the veteran’s exemption status after the loan closed, and the disability rating changed. It will be refunding $400 million to veterans.
As a result, the VA has made changes to guidelines for lenders:
- Better communication with the veteran about just when the funding fee can be waived.
- Asking about the veteran’s disability claim status during the writing of the loan and then checking the status just three days before closing.
- Ensuring oversight, so that veterans who can waive fees are identified.
- If you think you might be entitled to a refund of those funding fees, call the loan center at 877-827-3702.
To understand the fees associated with a home loan (both before and after you buy a home), go online to www.va.gov. Do a search for home loan fees and read the fine print.
For example, veterans pay a funding fee in lieu of down payment and mortgage insurance. The fee is a percentage of the loan amount and is based on the type of loan. It’s also based on whether you’re a first-time or subsequent buyer.
You don’t pay a fee if you receive service-connected disability compensation, or if you would get that compensation if you didn’t get retirement or active duty pay, or if you’re the surviving spouse of a veteran who died during service or from a service-connected disability.
Scroll down the loan fees page and click on the funding fee chart to see how much money is involved.
© 2019 King Features Synd. Inc.
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