Good news for veterans and military families! The U.S. Department of Veterans Affairs (VA) is making home buying more affordable by reducing the VA funding fee on some of its mortgages this spring.
Starting April 7, the fee reduction will range from 0.15% to 0.30%, depending on the down payment, mortgage type, and whether you have used a VA loan before.
This means more savings for you and an even better reason to consider a VA loan.
Imagine you're a first-time VA loan user with less than a 5% down payment. The funding fee for a $400,000 mortgage will now be 2.15% instead of 2.3%, which translates into a $600 saving on your upfront payment. And the best part? This fee reduction will be in effect until November 14, 2031.
This reduction is expected to benefit hundreds of thousands of veterans and military homebuyers in 2023 alone. Despite a likely decrease in purchase lending this year, the reduced fees will help save veterans and military families over $200 million throughout the life of their loans.
Keep in mind, not all VA borrowers have to pay a funding fee. If you meet specific criteria, you could be exempt from the fee or even get a refund if your status changes after paying it.
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:
Purchase
Construction
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
Loan assumptions
To apply for a VA loan, you'll first need a certificate of eligibility. The VA sets the eligibility requirements, but the loans are issued by private lenders, which means requirements may vary.
Not all lenders offer VA loans, so you might have to explore different options. Interest rates and borrower requirements, like minimum credit scores and down payment amounts, can differ among lenders.
With these new savings on VA loans, now is the perfect time for veterans and military families to pursue their dream of homeownership.
Don't miss out on this fantastic opportunity!
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
Benefits
Determining eligibility
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:
Save money!
Minimize stress!
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!
Active-duty
Retired
Surviving family members
Real estate agents (gift idea!)
Mortgage brokers and lenders (digital version!)