What Veterans don’t have to pay a funding fee?

Receiving VA compensation for a service-connected disability, or Eligible to receive VA compensation for a service-connected disability, but you’re receiving retirement or active-duty pay instead, or The surviving spouse of a Veteran who died in service or from a service-connected disability, or who was totally disabled, and you’re receiving Dependency and Indemnity Compensation (DIC), or A service member with a proposed or memorandum rating, before the loan closing date, saying you’re eligible to get compensation because of a pre-discharge claim, or A service member on active duty who before or on the loan closing date provides evidence of having received the Purple Heart You may be eligible for a refund of the VA funding fee if you’re later awarded VA compensation for a service-connected disability. The effective date of your VA compensation must be retroactive to before the date of your loan closing.