
If you're a veteran planning to purchase a home in Las Vegas or Henderson, you may already know that VA home loans offer some incredible benefits. But there's one benefit that many eligible veterans overlook, and it could save you thousands of dollars when buying a home.
You may be exempt from paying the VA funding fee.
As a Military Relocation Professional (MRP) and the spouse of a veteran, I understand how important it is to know which benefits are available before starting the homebuying process.
Let's break down what the VA funding fee is, who may qualify for an exemption, and why it matters when purchasing a home in Southern Nevada.
What Is the VA Funding Fee?
The VA funding fee is a one time fee that many borrowers pay when using a VA home loan.
This fee helps support the VA home loan program, which offers qualified borrowers benefits such as purchasing a home with no down payment and no monthly private mortgage insurance.
The funding fee is separate from your other closing costs. Depending on your situation, you can typically pay it at closing or finance it into your mortgage.
However, not every veteran is required to pay it.
Who Qualifies for a VA Funding Fee Exemption?
According to the Department of Veterans Affairs, several groups may qualify for an exemption.
These include:
- Veterans receiving VA compensation for a service connected disability.
- Veterans eligible for service connected disability compensation who receive retirement or active duty pay instead.
- Eligible surviving spouses receiving Dependency and Indemnity Compensation (DIC).
- Service members with a qualifying proposed or memorandum disability rating before closing.
- Active duty service members who provide evidence of receiving a Purple Heart on or before closing.
If you fall into one of these categories, you may not have to pay the funding fee when purchasing your home.
Important: You do not necessarily need a 100% disability rating to qualify. Eligibility depends on your VA compensation or other qualifying exemption status, not simply on having a particular disability percentage.
How Much Money Could This Save You?
A VA funding fee exemption could save eligible veterans thousands of dollars when purchasing a home.
For example, on a $400,000 home purchase with no down payment, a first time VA loan borrower could save approximately $8,600 in funding fees.
That's a significant savings that could make buying a home in Las Vegas or Henderson more affordable.
And because the funding fee is often added to the mortgage, being exempt could also mean a lower loan balance and less interest paid over time.
What If You've Used Your VA Loan Before?
Here's another detail worth understanding.
Veterans can potentially use their VA home loan benefit more than once.
For borrowers who are not exempt, the funding fee on a subsequent VA purchase loan with less than 5% down is generally 3.3%.
On a $400,000 loan, that's $13,200.
But if you qualify for a funding fee exemption, the exemption can apply even when you're using your VA home loan benefit again.
That can make a significant difference for veterans looking to sell their current home and purchase another property in Las Vegas, Summerlin, Henderson, or surrounding communities.
What Happens If Your VA Disability Benefits Are Approved After Closing?
This is something I especially want veterans to understand.
You may still qualify for a funding fee refund if your VA disability compensation is approved after your home purchase.
The important factor is the effective date of your compensation.
If your compensation award has an effective date that is retroactive to before your loan closing date, you may be eligible for a refund of the funding fee you paid.
However, an approval after closing does not automatically guarantee a refund. Your specific eligibility must be reviewed.
If you believe you qualify, contact your VA Regional Loan Center or mortgage servicer to discuss the process.
Does a Funding Fee Exemption Mean You Have No Closing Costs?
Not necessarily.
This is one of the biggest misunderstandings about VA financing.
Being exempt from the VA funding fee does not mean every expense associated with purchasing a home disappears.
Depending on your transaction, you may still have costs associated with your appraisal, title services, prepaid taxes, homeowners insurance, and other permitted closing expenses.
The good news is that there may be ways to negotiate seller contributions toward eligible closing costs.
This is where having a real estate agent and lender who understand VA financing can make a difference.
Buying a Home Near Nellis or Creech Air Force Base?
Southern Nevada has a strong military and veteran community, including those stationed at Nellis Air Force Base and Creech Air Force Base.
Whether you're relocating to Las Vegas for a military assignment, transitioning out of active duty, or purchasing your retirement home, understanding your VA loan benefits before shopping can help you make more informed decisions.
From newer construction in Henderson to established neighborhoods in Northwest Las Vegas, there are many options worth exploring.
The important thing is knowing your budget, your financing options, and which benefits may apply to your situation.
What Should You Do Before Starting Your Home Search?
Before touring homes, I recommend speaking with a lender experienced in VA financing and confirming your eligibility.
Your lender can help review your Certificate of Eligibility, verify your funding fee status, and explain how your benefits affect your estimated mortgage payment and closing costs.
You should also understand how your purchase budget fits your monthly payment comfort level, not just the maximum amount you may qualify to borrow.
Once those pieces are in place, the home search becomes much more productive.
Let's Make Sure You Understand Your Options
Buying a home is a major financial decision, and veterans deserve to understand the benefits they've earned.
As a Las Vegas native, a licensed real estate professional since 2001, a Military Relocation Professional, and the spouse of a veteran, I'm passionate about helping military families and veterans navigate the local housing market with confidence.
If you're considering purchasing a home in Las Vegas, Henderson, Summerlin, or anywhere in Southern Nevada, I'd be happy to help you explore your options and connect you with experienced VA lending professionals.
Crystal Elijah-Ramos
Broker Salesperson | Signature Real Estate Group
BS.0145503
Call or Text: 702-749-4893
Website: vegasborncrystal.realtor
This article is for general educational purposes. VA loan eligibility, funding fee exemptions, refund eligibility, and loan terms should be confirmed with the Department of Veterans Affairs and your mortgage lender.






