VA Funding Fee Going Up

By
Real Estate Broker/Owner with Morningside Homes, LLC 720-231-5200 DRE# ER300941

 

The cost of a VA home loan is going up beginning January 1, 2020 when the funding fee is being increased from 2.15% to 2.3% for first time use.  The amount increases to 3.6% for subsequent zero-down payment loans.  Reservists and national guard veterans are subject to a slightly higher fee.

Veterans pay a funding fee when purchasing a home with a VA insured loan.  This one-time charge, collected by the Department of Veteran Affairs, is based on the loan amount to value with the fee decreasing as the down payment goes from 0% to 5% or 10% or more.  It can be paid upfront or rolled into the mortgage.

VA loans do not require mortgage insurance like FHA or 90-95% conventional loans.  They are backed by the Department of Veterans Affairs by guaranteeing a portion of the loan to the lender if a borrower defaults.  This relieves U.S. taxpayers the full burden of backing the loans.

The funding fee is waived for disabled veterans and surviving spouses of a veteran who died in service or from a service-connected disability.  Active-duty service members who have received a Purple Heart will be exempt from the funding fee beginning January 1, 2020.

Posted by

Buy or Sell with Patty Clark              Denver/Aurora Co. and surrounding areas 

Chris and Patty

    Helping Families Move with Care

  If you would like to be sent properties on a daily or weekly  basis just call or email me and let me know your wants and  needs. A match will be made with a home you love and with  monthly payments you can afford. I specialize in first time                       home buyers and sellers who are ready to make a move.

                                                    

 

Morningside Homes, LLC
patty@morningsidehomes.com

www.morningsidehomes.com
Cell: 720-231-5200                       CRS,GRI,WCR,SFR,CNE, MRE

 

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Rainer
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Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Thanks for the info on a VA loan. I had not seen this before.  I do sell to Vets quite often so it is good to know.

Oct 13, 2019 06:53 PM #1
Rainmaker
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Patty Clark
Morningside Homes, LLC 720-231-5200 - Denver, CO
Helping Families Move with Care

The Purple Heart receipients don't have to pay the funding fee at all. I think that's a great thing for the distinguished veterns.

Oct 13, 2019 07:03 PM #2
Rainmaker
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Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Good info to know about in the new year.  It's a shame they have to do this.

Oct 14, 2019 12:54 AM #3
Rainmaker
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Patty Clark
Morningside Homes, LLC 720-231-5200 - Denver, CO
Helping Families Move with Care

Yes, I agree.  Some vets are struggling as it is.

Oct 14, 2019 08:13 AM #4
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Rainmaker
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