Aundrea Beach-Greco Mortgage Blog

EFFECTIVE 10-1-2011

The Department of Veterans Affairs has announced changes to VA loan funding fees effective October, 1, 2011. For VA home loans closed on or after that date, the new rates apply.

VA loan funding fees:

First-time use = 1.4% with a 5% or less down payment 

We still offer Zero Down for Veterans!

Active duty veterans = 1.4% and Guard and Reserve veterans = 1.65%

Subsequent use veterans (both active duty and Guard/Reserve) will have funding fees for those making a down payment of 5% or less = 2.80% for one year, then drop again on October 1, 2012 to 2.15 for active duty, Guard and Reserve vets. Yet another drop is scheduled for October 1, 2013 when the VA loan funding fee for second-time use becomes 1.25%.

The VA loan funding fee for second-time use for borrowers putting down 5% or more changes in October but does not change again in subsequent years. The new VA loan funding fee for these borrowers will go down by .75% across the board for active duty, Guard and Reserve VA loan applicants.

In some cases the VA loan funding fee rates remain unchanged. For example, the funding fee for VA loan assumptions and Interest Rate Reduction Refinancing loans or IRRRLs remains at .50%. This is true for both active duty and Guard/Reserve members or veterans. The Department of Veterans Affairs reminds borrowers that further changes to the VA loan funding fee structure could occur; “Should Congress pass legislation making additional changes to the funding fee structure, VA will immediately publish a notice on our website.”

Thank you to our veterans for serving our country! 
I appreciate my freedoms for your sacrifices. 

If you have additional questions, please don't hesitate to call or email.