Veteran Disability & IRRRL Funding Fee Exemptions | Feb 2026

Disability Rating Benefits: Funding Fee Exemptions - What Veterans Need to Know in 2026

February 2026

As the founder of EZ-IRRRL and someone who's spent decades in VA lending, I've seen firsthand how many veterans miss out on significant benefits simply because they don't understand all the advantages their disability rating provides. One of the most substantial yet overlooked benefits is the VA funding fee exemption – a benefit that could save you thousands on your VA loan.

Understanding the VA Funding Fee and Exemptions

The key concept to understand is that the VA funding fee is essentially an insurance premium paid to the Department of Veterans Affairs to sustain the loan program. However, what most veterans don't realize is that if you have a VA disability rating of 10% or higher, you qualify for a complete exemption from this fee.

In my experience with VA lending, I've encountered countless veterans who paid this fee unnecessarily because they either didn't know about the exemption or hadn't yet received their disability rating when they initially purchased their home.

Retroactive Refunds: An Insider Secret

Here's the insider knowledge I share with every veteran I work with: if you closed on a VA loan and paid a funding fee, but were in the process of being approved for a VA disability rating that was later backdated to before your closing date, you may be entitled to a full refund of that funding fee.

Veterans often ask me about the process for claiming this refund. The VA has simplified this process in recent years, but many lenders won't proactively inform you about this benefit. This is precisely why I created EZ-IRRRL – to ensure veterans receive every benefit they're entitled to through an automated system that catches these opportunities.

Leveraging Your Exemption with an IRRRL

After years in VA lending, I've learned that combining your funding fee exemption with an Interest Rate Reduction Refinance Loan (IRRRL) creates an exceptional opportunity for savings. Since our automated IRRRL process requires NO income verification, NO appraisal, and NO debt-to-income assessment, veterans with disability ratings can refinance with minimal paperwork while enjoying the funding fee exemption.

This combination often results in substantial monthly payment reductions and significant long-term interest savings without the hurdles of traditional refinancing.

Taking Action in 2026

If you have a VA disability rating of 10% or higher, you should be exploring your IRRRL options, especially if you're paying a higher rate than what's currently available. Our streamlined 30-day process eliminates the origination costs that traditional lenders charge, passing those savings directly to you.

Remember, these benefits were earned through your service. Don't leave them unclaimed.

This is not an offer to lend. Rates subject to change. Get an official Loan Estimate before choosing a loan. EZ-IRRRL is not affiliated with the U.S. Government.