*** update – Congress has repealed the changes to the VA Funding Fee that were to take effect Oct 1, and then again on Nov 17.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 Veterans Adminstration has delayed implementation of the new VA Funding Fee Structure until Nov 17, 2011****
The Veterans Administration has announced that the Cost of VA Loans will be going down Oct. 1. The VA Guarantees loans made to 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.
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.