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VA Loan Appraisal Fee Waviers? A Reader Question

063-logoA reader asks, “I heard that for VA if you have a disability, for example PTSD, you can qualify for a waiver for the appraisal…is that true?”

Based on a reading of the VA Lender’s Handbook, there is nothing in the VA loan rules that specifies a borrower would be eligible for any kind of waiver for an appraisal fee. The appraiser fee is based on compensation for a service rendered, and since the appraiser is not an employee of the Department of Veterans Affairs, the VA would seem to have no jurisdiction to impose such a waiver.

It’s likely that the reader is misinformed, or thinking of the waiver offered to veterans who receive or who are eligible to receive VA compensation for service-connected medical conditions.

The VA offers a waiver of the VA loan funding fee in such cases, but the waiver is not automatic. The lender and borrower may need to work together to request the waiver based on proof from the VA that the compensation has been approved.

In cases where a borrower does not yet have the final word from the VA on the status of disabled status or compensation status, the lender may require the borrower to pay the VA loan funding fee up front and request a refund once the VA is made the compensation issue an official part of the veteran’s records.

If you need assistance in making a VA claim or aren’t sure about the status of your claim, contact the VA directly at 1-800 827-1000 and ask to speak to someone about your claim or check the status of it.

Do you have questions about VA home loans? Ask us in the comments section.

Bruce Reichstein

About Bruce Reichstein

Bruce Reichstein is an Expert on (VA) Military/Veteran Home Loan Guidelines for over 26 years. He is an experienced VA Loan Mortgage Banker who is passionate about assisting US Military Veterans utilize their Veteran Eligibility to purchase a home.

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