Thanks to Julie Gould at Propect Mortgage for this timely information on VA funding fees. 

After an initial delay, the reduction in VA funding fees by approximately .50-.75% will go into effect with all loans closed after 11/18.  This is good news for veteran borrowers!
 

VA Funding Fee Matrix – Purchases – Oct. 6 through Nov. 17, 2011

Type of Veteran  

Down Payment  

Percentage for  
First time Use
 

Percentage for  
Subsequent Use
 

Regular Military   Less than 5%  
5% or more (up to 10%)  
10% or more  

2.15%  
1.50%  
1.25%  

3.3%*  
1.50%  
1.25%  

Reserves/  
National Guard  
Less than 5% 
5% or more (up to 10%)  
10% or more  

2.4%  
1.75%  
1.5%  

3.3%*  
1.75%  
1.5%  

   VA Funding Fee Matrix – Cash Out Refinancings – Oct. 6 through Nov. 17, 2011

Type of Veteran  

Percentage for First  
Time Use
 

Percentage for  
Subsequent Use
 

Regular Military  

2.15%  

3.3%*  

Reserves/National Guard  

2.4%  

3.3%*  

  • ·         Loans closed on or after November 18, 2011

Funding fees for loans closed on or after November 18, 2011 will be reduced as shown as follows :

Type of Veteran  

Down Payment  

Percentage for  
First time Use
 

Percentage for  
Subsequent Use
 

Regular Military   Less than 5%  
5% or more (up to 10%)  
10% or more  

1.40%
.75%
.50%

2.80%

.75%

.50%  

Reserves/  
National Guard  
Less than 5% 
5% or more (up to 10%)  
10% or more  

1.65%  
1.00%  
.75%

2.80%

1.00%

.75%

  • Funding fees for other loans
    Funding fees for Interest Rate Reduction Refinancing Loans (IRRRLs) and Assumptions will not change. They will remain at .50%.
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