The Kentucky VA funding fee status is specified on the Certificate of Eligibility (COE). The standard funding fees as shown
below may be financed in the loan amount. The COE indicates the exempt status as follows:
• A Veteran receiving disability compensation (or would be eligible for disability, but is receiving
retirement pay or active service pay)
• A surviving spouse of any Veteran who died during active duty or from a service-connected disability.
The surviving spouse must be in receipt of the Dependency and Indemnity Compensation
• A Veteran who is rated as eligible to receive compensation from a pre-discharge disability examination
or review of existing medical evidence that results in the issuance of a memorandum rating before the
loan closes
If the COE does not reflect the exemption and the Veteran believes he/she is exempt, obtain the following:
• An updated COE within three days of closing using the ‘Correct’ function in WebLGY, or
• For an active duty service member who indicates they have a pre-discharge claim pending, the RLC must
be contacted by email to assist with obtaining a proposed or memorandum rating to determine if the
Service member may be exempt from paying the funding fee. If a proposed or memorandum rating is
not obtained prior to closing, the Service member will not be eligible for a funding fee exemption
Funding Fees
Type of Loan Down Payment First-time Use Subsequent Use
Purchase & Construction Loans
