The VA home loan funding fee/costs for California Veterans (Active Duty, Reserves and National Guard too) is being reduced starting October 1st, 2011. Both first time and subsequent home buyers who qualify for a California VA home mortgage will benefit from the new Restoring GI Bill Fairness Act of 2011 that lowers the VA funding fee.
— Breaking News — President Obama and our fine upstanding politicians passed H.R 674 which reinstates the higher VA funding fees so that our country’s heroes can pay more when buying a home. Read about H.R. 674 VA Funding Fee Changes here.
The required one time up front VA funding fee is an important part of the government VA loan approval process because is eliminates the need for monthly mortgage insurance. This new lower VA funding fee equates to a 35% reduction and results in an up front savings of $2,250 a $300,000 home purchase.
This makes the VA home even more affordable for home buyers in Temecula, Murrieta, Menifee, Lake Elsinore, Corona, Riverside, Moreno Valley and all of Riverside County!
The amount of the VA funding fee depends on the amount of your down payment and whether or not you have used your VA home loan benefit previously. It also can vary depending on whether you served in Active Duty or the Reserves/National Guard.
Some Veterans may be exempt from paying the VA funding fee if they have a disability rating of 10% or higher.
Californian’s hoping to refinance with a VA IRRL (Interest Rate Reduction Loans) will not be impacted because the VA funding fee will remain unchanged at .50%.
At a time when other government home financing agencies (FHA, USDA, Fannie Mae) are raising costs, it’s nice to see the VA do something to help our military personnel and the California housing market at the same time.