Saturday, September 24, 2011

VA Decreases Funding Fees

It is refreshing to know that the VA is decreasing the upfront funding fee on its guaranteed loan program for Veterans while other government mortgage programs like FHA and USDA have increased their fee structures. Currently Veterans have the lowest default rate according to the most recent Mortgage Bankers Association Delinquency Survey. The change comes after the passing of Public Law 112-26, Restoring GI Bill Fairness Act of 2011 and there is a possibility the funding fees will change again should Congress pass additional legislation. Lenders are encouraged to monitor the VA website for any upcoming changes to the fee structure.

Effective on loans funded on or after October 1st the VA will reduce the funding fee as follows:
VA Funding Fee Table - View the VA Circular

For more information on the popular loan program for Veterans or to see if you qualify contact me, I would be happy to help. 

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