Upcoming VA Funding Fee Changes
Important update as of 11/8/2011–VA believes it is highly likely that Congress will pass a bill keeping funding fees at their present level. If a bill is passed and signed into law, the funding fees will not decrease as scheduled. VA is closely monitoring the situation and will post notices as soon as they receive definite information.
Great news from the Veterans Benefits Administration! On September 8, 2011, VA announced that there will be changes in their funding fees for loans closed October 1st, 2011 through October 1st, 2012. The decreased funding fees will benefit Veterans, Reservists and National Guards for first time and subsequent uses. I have included charts below so you can see the changes for VA purchase loans.
First Time Use:
|
Down Payment |
Old – Veteran |
New – Veteran |
Old – Reservist/National Guard |
New – Reservist/National Guard |
| Less than 5% | 2.15% | 1.40% | 2.40% | 1.65% |
| 5% – less than 10% | 1.50% | 0.75% | 1.75% | 1.00% |
| 10% or more | 1.25% | 0.50% | 1.50% | 0.75% |
Subsequent Use:
|
Down Payment |
Old – Veteran |
New – Veteran |
Old – Reservist/National Guard |
New – Reservist/National Guard |
| Less than 5% | 3.30% | 2.80% | 3.30% | 2.80% |
| 5% – less than 10% | 1.50% | 0.75% | 1.75% | 1.00% |
| 10% or more | 1.25% | 0.50% | 1.50% | 0.75% |
If you have any questions, don’t hesitate to call or email me.
September 22, 2011 by Silvia Ward Carden · Leave a Comment
My mission is to guide clients through the loan process so they feel confident as they make choices about the financing options available to them.
Silvia Ward, NMLS 217202
Mortgage Loan Originator
United Lending LLC
(512) 592-5455
silvia@silviaward.com
