Funding Fee Refund

[Blackhawk12]

I didn't know where exactly to put this.

I may be out of luck, but thought I would ask anyway. I did a VA refinance on my house in April 2009 and paid the VA funding fee. I was awarded disability compensation with effective date of July 2009, on a retro award. Even though the injuries I sustanined were prior to the April 2009 refinance date does the VA only look at the date you were awarded the diability in determining if you can get a refund on your filing fee? Thanks.

[jbasser]

They look at the effective date.

J

[Tbird]

basser is right it's all about the effective date

[Tbird]

From the VA site: http://benefits.va.gov/HOMELOANS/irrrl.asp

VA Funding Fee

Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan's cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time. You do not have to pay the fee if you are a:

• Veteran receiving VA compensation for a service-connected disability, OR
• Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
• Surviving spouse of a Veteran who died in service or from a service-connected disability.

The funding fee for second time users who do not make a down payment is slightly higher. Also, National Guard and Reserve Veterans pay a slightly higher funding fee percentage. See Loan Fees for more information about loan costs. Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you money in interest over the life of the loan, you may see a very large increase in your monthly payment if the reduction in the interest rate is not at least one percent (two percent is better). Beware: It could be a bigger increase than you can afford.