VA Funding Fee reduction
The Veterans Administration has announced that VA Funding Fees will be reduced for VA Loans closed on or after April 7, 2023. The VA Funding Fee had been on a temporary increase since January 1, 2020 as part of the 2019 Navy Blue Water Veterans Act.
The new Funding Fee structure for VA Loans closed on or after April 7, 2023 will be as follows:
| Down Payment Amount | Funding Fee Percentage | |
|---|---|---|
| First Use | Less than 5% | 2.15% |
| 5% or more | 1.5% |
|
| 10% or more | 1.25% | |
| Subsequent Use | Less than 5% | 3.3% |
| 5% or more | 1.5% | |
| 10% or more | 1.25% |
| Funding Fee Percentage | |
|---|---|
| Cash Out Refinance First Use | 2.15% |
| Cash Out Refinance Subsequent Use | 3.3% |
| VA IRRRL - Interest Rate Reduction Refinance Loan | .5% |
If you have a Service Related Disability of 10% or more, you may be exempt from the VA Funding Fee.
Please contact us to confirm whether you are exempt or not. It can save you thousands to tens of thousands on the VA Funding Fee. We can also help guide you if you have a pending Service related disability claim and wish to purchase a home prior to the claim going into effect. There is a process in place where we can notify the VA that you have a pending claim, and once it is finalized, they will refund the VA Funding Fee to you.
Please let us know if you have any questions or need help with your VA Loan. We have specialized in VA Home Loans since 2008 – Veterans are important to us!