Attention all VA home loan shoppers!
Get ready to save big on your home purchase or construction project with the latest news from the Department of Veterans Affairs (VA). In a recent announcement, the VA has reduced the funding fee for purchase or construction loans, as well as cash-out refinance transactions.
U.S. Department of Veterans Affairs (VA) announced reduced funding fees:
Cash-out refinance loans
Guaranteed by the VA
Closed on or after April 7, 2023
The following funding fees remain the same:
IRRL Interest Rate Reduction Refinance Loans streamlined refinance
Non-IRRL Native American direct loans
Manufactured home loans not permanently affixed to a property
This means that you could potentially save thousands of dollars on your VA home loan
The VA has reduced the funding fee by roughly .15% across the board, and for those using the program for the second time or looking to purchase a home or construct a property with less than 5% down payment, the fee has been reduced by a whopping .3%.
These reduced funding fees will take effect for loans closed on or after April 7, 2023
So, if you're in the market for a new home or looking to take advantage of the low-interest rates for a cash-out refinance, now may be a good time to act. This is a unique opportunity to save on your dream home or construction project with a VA home loan.
What is the VA funding fee?
The VA funding fee is a one-time fee that the Department of Veterans Affairs (VA) charges to most veterans who use the VA home loan program to buy a home or refinance an existing mortgage. The fee helps the VA cover the costs of administering the loan program and ensuring that the program is self-sustaining.
The amount of the fee is typically a percentage of the loan amount and varies based on factors like the type of loan, whether the veteran has used the program before, and the down payment amount. Veterans who have a service-connected disability and certain surviving spouses are usually exempt from the fee.
It's important to note that the VA funding fee is not the same as a down payment, and it's not a fee that goes to the lender. Instead, it goes directly to the VA to support the program and help make it possible for more veterans to become homeowners.
VA Loan Guide - Know What Lenders Know
If you're a veteran or active-duty member of the military, buying a home can feel like an overwhelming process. But with the VA loan program, you have access to a range of benefits that can make homeownership more affordable and attainable than ever before.
In "VA Loan Guide - Know What Lenders Know," you'll discover everything you need to know about this powerful program, from eligibility requirements to the application process. Written by KC Stark, a military veteran and licensed mortgage broker, this easy to read guide will help you understand the ins and outs of VA loans and give you the knowledge and tools to navigate the process with confidence.
Are you a first-time homebuyer or looking to refinance your current mortgage?
This book will show you how to take advantage of the many benefits of VA loans including:
Brief History of the VA Loan Program
Surviving spouses and family members
VA Loan Process
Understanding your FICO score
The VA Funding Fee
VA Rates vs Conventional Terms
Calculating your budget and DTI
Navigating interest rates, appraisals, assumptions, and much more!
With quick tips and strategies that only experienced brokers know:
Make your dream of homeownership a reality!
If you're a veteran or active-duty service member looking to buy a home, "VA Loan Guide - Know What Lenders Know" is the fun and helpful resource to help you make the most of your VA loan program benefits.
Get your VA Loan Guide - Know What Lenders Know Today!
Order your copies today in digital paperback or hardcover today only at Amazon!
Surviving family members
Real estate agents (gift idea!)
Mortgage brokers and lenders (digital version!)
What are the minimum service requirements for VA loan benefits?
If you serviced between August 2, 1990, and the present (Gulf War period to present)
You meet the minimum active-duty service requirement if you served for:
At least 24 continuous months, or
The full period (at least 90 days) for which you were called or ordered to active duty, or
At least 90 days if you were discharged for a hardship, or a reduction in force, or
Less than 90 days if you were discharged for a service-connected disability.