We have come across quite a few people recently who have claims in to the VA for VA service-connected disabilites waiting to purchase a home until the disability claim is awarded so they will be exempt from the VA funding fee is a little-known secret out there that you are typically backdated to the filing date of your disability. If you do purchase a house in between that date, you will be refunded the funding fee back from the VA. However, this is not always the best route to go because you technically don’t get the money back in your pocket; it is given back to you to give back to the bank, so in reality you are financing the interest of that cost over the life of the loan. If you wait it is always the best scenario to do, but in that rare situation where you want to buy the house, don’t let waiting for the disability award stop you from doing that.
Sr. VA Loan Specialist