Four decision points

1. Eligibility: obtain or confirm the Certificate of Eligibility.
2. Lender underwriting: the private lender evaluates credit, income and loan requirements.
3. Property: the lender requests the VA appraisal; VA appraisal is not a home inspection or guarantee of condition.
4. Closing: review funding fee, exemptions, allowable costs, title, insurance and final loan terms.

Funding fee

The VA funding fee is generally a one-time charge on VA-backed/direct loans unless an exemption applies, including specified service-connected disability situations. It may be paid at closing or financed when permitted. Verify exemption status before closing and preserve the VA/lender determination.

• COE and service documents
• Loan estimate and closing disclosure
• VA appraisal/Notice of Value
• Funding-fee calculation or exemption
• Inspection records kept separately from VA appraisal
• Closing and servicing correspondence

Official sources

• VA — Certificate of Eligibility
• VA — Funding Fee and Closing Costs
• VA — Form 26-1880

Source status: SRC-121; SRC-122; SRC-123 verified October 4, 2026. Benefit eligibility and effective dates are fact-specific; use the current VA decision and form instructions for the individual case.