Calling all military buyers purchasing a house with the VA loan – we have good news!
As of 7 April 2023, VA Funding Fees have been lowered.
Reduced funding fees are effective for loans closed on or after April 7, 2023 and effective through November 14, 2031.
Funding fee rates for VA Home Loans and VA Construction loans were generally reduced by .15%. However, the VA reduced the funding fee by .3% for subsequent use loans.
Check out the graph below for a snapshot of the changes.
What is a VA Funding Fee?
The VA Funding Fee is a one-time payment that active-duty military or veterans, pay to the Veterans Affairs on a VA home loan.
You can pay the fee by including it in your loan and paying it off over time (a.k.a financing the fee), or paying the fee all at once at closing.
Does it make that big of a difference?
For example, let’s say you have a VA home loan of $400,000, it’s your second time using it, and you’re making a 0% down payment. If you closed on the loan last month, your VA funding fee would have been $9,200. Now, if you close on that home today or in the next 8 years, your funding fee will be $8,600.
That’s a difference of roughly $600!
Ready to take the next step towards securing a VA Home Loan? Call us at 316-669-5272 – we’ll get you started on the path towards your new home!