VA mortgage insurance amounts set to change

As a result of Public Law 112-26, Restoring GI Bill Fairness Act of 2011 and previous legislation, reduction in funding fees for the VA home loan program will take place for loans closed on or after October 1, 2011. First time VA loan users will now pay 1.4% for purchase and refinance loans, down from 2.15%. Also reservists and National Guard members will now pay 1.65%, down from 2.4%. Subsequent VA loan borrowers who put down less than 5% for purchase and regular refinance loans will pay a reduced VA funding fee of just 2.8 %, down from the previous 3.3%. Surviving spouses and disabled vets are still exempt from the VA funding fee.