New VA Funding Fees

The VA (Veterans Administration) has updated their Funding Fees for VA loans. The new Funding Fees will apply to all VA transactions funded after September 30, 2011.

It is interesting to note, as FHA continues to raise their fees, the VA has reduced their fees considerably. Almost makes you think the VA understands the current financial mess the country is in and that by making home ownership more affordable is the best way to help.

Purchase and Construction Loans

Type of Veteran	Down Payment	Percentage for First Time Use		Percentage for Subsequent Use
Type of Veteran	Down Payment	Current	New	Current	New
Regular Military	None	2.15%	1.40%	3.30%*	2.80%*
	5% or more (up to 10%)	1.50%	0.75%	1.50%	0.75%
	10% or more	1.25%	0.50%	1.25%	0.50%
Reserves/ National Guard	None	2.40%	1.65%	3.30%*	2.80%*
	5% or more (up to 10%)	1.75%	1.00%	1.75%	1.00%
	10% or more	1.50%	0.75%	1.50%	0.75%

Cash-Out Refinancing Loans

Type of Veteran	Percentage for First Time Use		Percentage for Subsequent Use
Type of Veteran	Current	New	Current	New
Regular Military	2.15%	1.40%	3.30%*	2.80%*
Reserves/National Guard	2.40%	1.65%	3.30%*	2.80%*

*The higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan.

Funding fees for Interest Rate Reduction Refinancing Loans and Assumptions will not change. They will remain at .50 percent.

Get the documents:

United States Code (Title 38, Chapter 37, Section 3729)
Public Law 112-026
VA Circular 26-11-12

CCSemick

Great Post--Good to know our Vets are getting a break! I like the way you included the purchase and construction loan information, too.

share flag

spam
offensive
disagree
off topic

Richard M. Hartian

Thanks for the positive comments...:)

Ins and Outs of the VA Home Loan Program says:

December 5, 2011 at 8:11 am

[...] fee was lowered and now ranges from 1.40 percent to 2.80 percent of the loan amount; however, the fee can be even less depending on if you put money down or [...]