Buying a home is getting less expensive for Veterans.  Effective for Veteran Affairs (VA) loans closed on or after October 1, 2011, the VA funding fee will change.

According to VA Circular 26-11-12, changes in the VA funding fee are prompted by the passage of Public Law 112-26, Restoring GI Bill Fairness Act of 2011, and other previous legislation. The following chart is a list of the current and new VA funding fees scheduled to take effect on October 1, 2011.

 

Use/Purpose

Down Payment

Active Duty Veteran

Reservist/National Guard

Current

New

Current

New

First Time Less than 5%*

2.15%

1.40%

2.40%

1.65%

First Time 5% – 9.99%

1.50%

0.75%

1.75%

1.00%

First Time 10% or more

1.25%

0.50%

1.50%

0.75%

Subsequent Less than 5%*

3.30%

2.80%

3.30%

2.80%

Subsequent 5% – 9.99%

1.50%

0.75%

1.75%

1.00%

Subsequent

10% or more

1.25%

0.50%

1.50%

0.75%

Interest Rate Reduction

N/A

0.50%

0.50%

0.50%

0.50%

Assumptions

N/A

0.50%

0.50%

0.50%

0.50%

*Includes “Cash-Out” Refinancing Loans

More information on mortgages for Veterans.

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