Who does not pay the VA funding fee, and how to confirm it
Surviving spouses
Short answer
Surviving spouses who use the VA home loan benefit and receive Dependency and Indemnity Compensation are exempt from the funding fee. A surviving spouse who is also a veteran with their own compensation is exempt on that basis too. Eligibility for the home loan benefit itself has its own rules and is confirmed on the COE.
Last reviewed against the primary sources listed below.
Two separate questions
- Am I eligible for the home loan benefit as a surviving spouse?
- Am I exempt from the funding fee because I receive DIC?
Exemption questions
Do surviving spouses pay the VA funding fee?
Not if they receive Dependency and Indemnity Compensation.