Just a reminder
Effective October 2006, changes in VA funding fees went into effect. The new changes are impacting both active duty as well as retired service members.
First-time use remains 2.15%, but subsequent use rose from 3.30% to 3.35%. 5-10% down gets you 1.50% while a down payment of 10% or more gets you a 1.25% funding fee.
For the Reserves and the National Guard, the VA funding fee for first-time home buyers is 2.40%. Subsequent use is 3.35%; a 5-10% down payment gets you a 1.75% funding fee and 10% or more down gets you 1.50%.
Total loan amount is equal to the sales price plus an additional amount of sales price times the VA funding fee.
Example: with a sales price of $250,000, for an active duty first-time usage:
$250,000 + $5,375
$255,375.
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