Can a surviving spouse use a VA home loan?

Yes. Un-remarried surviving spouses of veterans who died in service or from a service-connected disability are eligible for VA loan benefits. If the surviving spouse has remarried, eligibility is generally lost, with limited exceptions. Dan can verify eligibility through the VA's Certificate of Eligibility system.

Can I use my VA loan benefit more than once?

Yes. VA entitlement can be restored after you sell the home and pay off the VA loan, or you can have two VA loans simultaneously in some circumstances using bonus entitlement. Veterans who paid off a prior VA loan but no longer own the home can request a one-time restoration of full entitlement.

Is the VA funding fee waived for disabled veterans?

Yes. Veterans with a service-connected disability rating of 10% or greater are fully exempt from the VA funding fee. Surviving spouses receiving Dependency and Indemnity Compensation (DIC) are also exempt. This is verified through the VA at the time of closing — you do not need to arrange the waiver separately.

Can a veteran buy a multi-unit property with a VA loan?

Yes. VA loans can be used to purchase 2–4 unit properties as long as the veteran occupies one of the units as their primary residence. This is an excellent strategy for veterans who want to use rental income from the other units to offset their housing cost. Rental income can be used for qualification under specific guidelines.

Does a VA loan require a down payment in California?

No. Veterans with full entitlement (no current VA loan outstanding) can purchase a home in California with zero down payment, regardless of the purchase price. There is no VA loan limit for borrowers with full entitlement. The only upfront cost is the VA funding fee (unless waived).

Can a National Guard member use a VA home loan?

Yes, with sufficient service. National Guard and Reserve members typically qualify after 6 years of service, or fewer years if they were called to active duty. Service requirements changed after the Gulf War period. Dan can verify eligibility through the VA's Certificate of Eligibility system at no charge.

VA Funding Fee: What It Is, How Much It Costs, and Who Can Get a Waiver

The VA funding fee is one of the most misunderstood costs in the VA loan process, and for eligible veterans with service-connected disabilities, it's also one of the most commonly missed exemptions. On a $400,000 VA loan, the funding fee at first use with no down payment is $8,600. If you're exempt and you don't know it, you're paying $8,600 you legally don't owe.

What the VA Funding Fee Is

The funding fee is a one-time charge paid to the Department of Veterans Affairs to help sustain the VA loan program for future generations of veterans. Unlike FHA mortgage insurance, it's not a monthly cost, it's either paid upfront at closing or rolled into the loan amount. It doesn't go to the lender. It goes to VA to fund the guarantee that makes zero-down-payment lending possible without requiring taxpayer appropriations.

2026 Funding Fee Amounts

The fee amount depends on your down payment, whether it's your first VA loan or a subsequent use, and your military status. For purchase loans in 2026: first use with 0% down, 2.15%; first use with 5% down, 1.50%; first use with 10%+ down, 1.25%. Subsequent use with 0% down, 3.30%; subsequent use with 5% down, 1.50%; subsequent use with 10%+ down, 1.25%. National Guard and Reserve members (prior to August 2, 1990) may have slightly different rates. These rates are set by Congress and can be adjusted.

Who Is Exempt from the Funding Fee

Veterans who receive VA compensation for a service-connected disability rating of 10% or higher are exempt from the funding fee entirely. This exemption also applies to veterans who are entitled to receive compensation but are currently receiving retirement or active-duty pay instead. Surviving spouses who are receiving Dependency and Indemnity Compensation (DIC) are also exempt. Active-duty service members who have been awarded the Purple Heart and are closing on or before the date the award is issued are exempt. If any of these apply to you, you should not be paying the funding fee.

How to Document the Exemption

The exemption is established through your Certificate of Eligibility (COE), which is the document from VA that confirms your loan eligibility. When VA issues a COE to a veteran with a service-connected disability rating, it notes the exemption on the certificate. Your lender uses this to confirm that the funding fee should be waived. If your COE doesn't reflect the exemption but you believe you qualify, perhaps your disability rating was recently approved, you'll need to provide documentation of your disability rating before closing.

Getting a Refund After Closing

Here's a situation that comes up: a veteran closes on a VA loan and pays the funding fee, and then a few months later VA approves a service-connected disability rating retroactive to before the closing date. That veteran is entitled to a refund of the funding fee. The VA processes these refunds, but you have to know to request it. If your disability claim is pending when you buy a home, keep that in mind, if it's approved retroactively, come back and ask about a refund.

Rolling the Fee Into the Loan

If you're not exempt and you don't want to pay the funding fee at closing, you can roll it into the loan amount. This means you'll pay interest on it over the life of the loan, which makes it cost more in total. But it eliminates the upfront out-of-pocket cost. On a $400,000 purchase with a 2.15% funding fee ($8,600), rolling it in means your loan amount is $408,600 rather than $400,000. Your monthly payment increases slightly, but you close without bringing that $8,600 to the table.

Common Mistake

Not checking for the exemption before closing. I've worked with veterans who paid the funding fee without knowing they were exempt, either because they didn't know the exemption existed, or because their disability claim was approved shortly before closing and the paperwork wasn't updated in time. Always pull your Certificate of Eligibility and verify the disability exemption status before your closing disclosure is finalized.

Bottom Line

The VA funding fee is real money, typically $6,000 to $10,000+ on a standard purchase, and veterans with a service-connected disability rating of 10% or higher don't owe it. Check your COE before closing. If you paid the fee and your disability was approved retroactively, you may be entitled to a refund. These are dollars worth paying attention to.