Veterans who paid the VA funding fee and were later awarded a retroactive service-connected disability rating effective before closing can get the fee refunded. Here is who qualifies and how the refund process works.
The VA tightly controls what a veteran can be charged at closing. Some fees are allowed, some are capped, and some are flatly banned. Here is the full list, including the 1% rule most borrowers have never heard of.
Roughly a third of VA borrowers should pay no funding fee at all. If you receive VA disability compensation — or are eligible to — the fee is waived. Here is who qualifies, how lenders verify it, and what to do if you were charged by mistake.
Updated 2026-10-10 · 7 min read
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