VA Loan Costs to go down Nov 17, 2011 - the VA has delayed implementation to Nov 17, barring Congressional Legislation or intervention
*** update - Congress has repealed the changes to the VA Funding Fee that were to take effect Oct 1, and then again on Nov 17. VA Funding Fees are expected to remain at prior levels for the next 2 years.
The VA Funding Fee is set to go down on Nov 17, 2011. The Veterans Administration has announced that on Nov 17, 2011, they will institute a new VA Funding Fee Structure for both VA Purchase and VA Refinance loans. The VA Guarantees loans made by private lender per VA Guidelines using the VA Funding Fee to help fund VA Loan Guarantees.
The VA Funding Fee is going down by as much as .75% in most cases for purchases and refinances. For a First Use of your VA Loan Benefit the new VA Funding Fee amount will now be 1.4%, down from 2.15% prior.
For a second, or subsequent use of your VA Loan benefit, the new VA Funding Fee amount will be 2.8%, down from 3.3% now. (same figure for Reservists).
For a First time use with 10% or more Equity, the VA Funding Fee will be reduced to 1.40%. This creates a huge opportunity for Veterans to Refinance non-VA loans into safe VA Loans at minimal cost.
IRRRL Streamline Refinance Funding Fees will remain at .50%.
Veterans with a 10% or higher VA Disability will still be exempt from the VA Funding Fee Requirement.
Here is a link to the VA Circular outlining the changes to the VA Funding Fee.
Be sure to give us a call direct if you have any questions regarding using your VA Benefit - 760-752-4480
Check out our VA Loan info Website for answers to all of your VA Questions, or just give us a call.