Friday, October 7, 2011

VA Funding Fees Clarified... For Now.

The VA News and Announcements page has been updated today to advise HR 2646 has been signed into law. Circular 26-11-15 has been issued and the fees structure published. The VA is waiving the difference in fees for loans disclosed with the lower fees prior to October 6, 2011 as the increase to fee would cause a tolerance violation where the GFE and final HUD was concerned. There is a high probability that the fee will change again in the near future with pending legislation and lenders are being advised to pay close attention. 

Loan Fee Structure for VA-Guaranteed Loans 

                                                                                 Veteran             Reservist/NationalGuard 
First Time Use     
Downpayment     
     Less than 5 percent ¹
             * October 1, 2011 until October 5, 2011            1.40%                 1.65% 
             * October 6, 2011 until November 17, 2011      2.15%                 2.40% 
             * On or after November 18, 2011                       1.40%                  1.65% 
     At least 5 percent but less than 10 percent      
             * October 1, 2011 until October 5, 2011             0.75%                1.00% 
             * October 6, 2011 until November 17, 2011      1.50%                 1.75% 
             * On or after November 18, 2011                        0.75%                 1.00% 
     10 percent or more     
             * October 1, 2011 until October 5, 2011             0.50%                0.75% 
             * October 6, 2011 until November 17, 2011      1.25%                 1.50% 
             * On or after November 18, 2011                        0.50%                 0.75% 

Second and Subsequent Use     
Downpayment     
     Less than 5 percent ¹
             * October 1, 2007 until October 1, 2011             3.30%                3.30% 
             * October 1, 2011 until October 5, 2011             2.80%                2.80% 
             * October 6, 2011 until November 17, 2011       3.30%                3.30% 
             * November 18, 2011 until October 1, 2012       2.80%                2.80% 
             * October 1, 2012 until October 1, 2013             2.15%                2.15% 
             * On or after October 1, 2013                               1.25%                1.25% 
     At least 5 percent but less than 10 percent      
             * October 1, 2011 until October 5, 2011             0.75%                 1.00% 
             * October 6, 2011 until November 17, 2011       1.50%                1.75% 
             * On or after November 18, 2011                         0.75%                1.00% 
     10 percent or more     
             * October 1, 2011 until October 5, 2011              0.50%                0.75% 
             * October 6, 2011 until November 17, 2011       1.25%                1.50% 
             * On or after November 18, 2011                         0.50%                0.75% 

Refinancing Loans     
Interest Rate Reduction                                                    0.50%                0.50% 

Other 
Assumptions                                                                      0.50%                0.50% 
Service-connected Veterans                                            0.00%                0.00% 

¹ includes 'Cash-Out' Refinancing loans     

To apply for this or any other loan program contact me today.