As a result of Public Law 112-26, Restoring GI Bill Fairness Act of 2011 and previous legislation, reduction in funding fees for the VA home loan program will take place for loans closed on or after October 1, 2011. First time VA loan users will now pay 1.4% for purchase and refinance loans, down from 2.15%. And, reservists and National Guard members will now pay 1.65%, down from 2.4%. Subsequent VA loan borrowers who put down less than 5% for purchase and regular refinance loans will pay a reduced VA funding fee of just 2.8 %, down from the previous 3.3%. Surviving spouses and disabled vets are still exempt from the VA funding fee.

Further reductions on repeat-use VA funding fees are scheduled annually until 2013. By October 1, 2013, subsequent users with less than 5% cash down will pay just 1.25% for VA funding fees. Streamline and Assumption VA funding fees will remain at .5%.

iFreedom Direct’s Marketing Director, Justin Bath, says, “Reduced VA funding fees make the military mortgage program even more affordable to eligible borrowers. These service members are ready to give their lives for our country and if anyone deserves to fulfill the American Dream of homeownership, they do.”

The views expressed herein are the views of the author exclusively and not necessarily the views of VHLN or any other VHLN authors, affiliates, advertisers, sponsors or partners. Notices

Posted by Liz Reed on Sep 28 2011, With 0 Reads, Filed under Lenders. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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