Finance/Money

VA Funding Fee Update

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Military families often ask to have their funding fees calculated before going through with a VA mortgage.  The VA funding fee can range between .5 and 3.3% for eligible borrowers.  The percentage varies based on the borrower’s service history and number of VA loan uses. 

Many are confused about the fees, and understandably so.  A recent string of bills signed by President Obama reduced the fees briefly in October, then raised them back to their previous levels.  

The VA funding fee schedule is now as follows through September 30, 2016:

• First-time Purchase and Refy* with less than 5% down — veterans pay 2.15% and Reservists/National Guard members pay 2.4%
• First-time Purchase and Refy* with at least 5% but less than 10% down — veterans pay 1.5% and Reservists/National Guard members pay 1.75%
• First-time Purchase and Refy* with 10% or more down — veterans pay 1.25% and Reservists/National Guard members pay 1.5%

*includes cash-out

• Subsequent Purchase and Refy with less than 5% down — veterans and Reservists/National Guard pay 3.3%
• Subsequent Purchase and Refy with at least 5% but less than 10% down — veterans and Reservists/National Guard pay 1.5%
• Subsequent Purchase and Refy with 10% or more down — veterans pay 1.25% and Reservists/National Guard pay 1.5%

• Streamlines — veterans and Reservists/National Guard pay .5%
• VA loan assumptions — veterans and Reservists/National Guard pay .5%

Surviving spouses and disabled vets may qualify for VA funding fee exemptions. 

For additional information, speak to a VA loan specialist. 

 

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