If you explored your VA loan options in years past but are looking at them again today, you might experience some confusion over the VA loan funding fee due to changes in the last few years.
Some changes in federal law resulted in temporarily lower VA loan funding fees for some borrowers, but later changes have established a more permanent VA loan funding fee structure that is in effect (at the time of this writing) until 2017.
The VA official website states: "In 2011, funding fees were lower from October 1 through October 5, and November 18 through November 21. The enactment of Public Law 112-56, signed November 21, 2011, established rates at the below levels through September 30, 2016. The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012, signed August 6, 2012, further extended the rates through September 30, 2017."
What are those rates? For new purchase VA loans and construction loans, the following table applies:
For VA IRRRLs, loan assumptions, and certain manufactured home loans, the following VA loan funding fee table applies:
And for VA Cash-Out refinance loans, this funding fee table is applicable:
The VA loan rulebook adds the following caveat on VA loan funding fees for cash-out refinance loans: "There are no reduced funding fees for regular refinances based on equity. Reduced fees only apply to purchase loans where a downpayment of at least 5 percent is made."
For more information on VA loan funding fees for your specific type of VA loan needs, speak to a loan officer or contact the VA directly at 1-800 827-1000.
Do you have questions about the VA loan funding fee, VA refinance, or new purchase VA mortgages? Ask us in the comments section.
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