The following individuals do not pay the VA funding fee:
• Veterans receiving VA compensation for a service-connected disability.
• Veterans entitled to receive VA compensation for a service-connected disability, but receive
retirement pay or active service pay.
• Unremarried surviving spouses of Veterans who died in active service or from a serviceconnected disability.
• Service member with a proposed or memorandum rating from VA, prior to loan closing, as
eligible to receive compensation as a result of a pre-discharge claim.
• Service member on active duty who provides, on or before the date of loan closing, evidence of
having been awarded the Purple Heart.