The VA Guaranteed loan funding fee has changed once again for Active Duty, Veterans, Reservists, and National Guardsman who are buying a home in California. In what could be one of the most confusing back and forth guideline changes since the housing crash of 2008, the Dept. of Veterans Affairs announced today that President Obama and our fine politicians have supported and signed H.R. 647 into law that would prevent our country’s heroe’s from receiving a reduced VA funding fee charge.
The VA originally announced back in September the VA funding fee would be reduced to 1.4% starting October 1st, but on three or four different occasions over the last two months, direction from congress and the VA has flip flopped back and forth stating the VA funding fee would first decrease, increase, decrease and now finally, revert back to the higher VA funding fee of 2.15% for first time users.
Here is a brief time line of the VA funding fee changes:
- October 1-5th – The VA funding decreased based on VA Circular 26-11-12.
- October 6-November 17th – VA Funding fees returned to the previous higher rates.
- November 18th – The interim bill expired and fees reduced again for the second time.
- November 19th – President Obama signs HR 674 reinstating VA funding fees to what they were prior to October 1st.
And people wonder why the mortgage industry is in disarray?
Read the VA circular here that announces H.R. 674 – Vow To Hire Heroes Act of 2011 reinstates higher VA funding fees.
Below is the the VA Guaranteed funding fee table for first time and subsequent use eligible home buyers.
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