New VA Mortgage Funding Fees – Phoenix Arizona
We got a question the other day on the new changes to the VA home loan funding fee, so I thought this would be a good topic to bring up today. The VA Funding Fee is a requirement for all VA mortgages – with a few exceptions, such as service connected disability or even for surviving spouses. Over the past few months, the Department of Veterans Affairs has bounced all kinds of numbers around in regards to the VA mortgage funding fee. When all the dust settled, this is what we now have (thru Sept. 30, 2016):
On first-time use and no down payment, the fee is: 2.15%. On first-time use with at least 5% down, but less than 10%, the fee is: 1.50%. And a first-time use with greater than 10% down, the funding fee is: 1.25%
For eligible Reservist/Guard members, the first-time use with no money down fee is: 2.40%. The same Reservist/Guard on a first-time use with 5% down, but less than 10%, the funding fee is: 1.75%. And a first-time use Reservist/Guard with greater than 10% down would have a funding fee at: 1.50%.
Now this all changes for second time users — as high as 3.30% with no money down for Veterans, as well as Reservist/Guard. The reasoning behind the much higher VA funding fees for second and subsequent use is that these Veterans and Reservists/Guard members have already used their benefits once and should have had time to gain equity or have saved enough for a down payment towards the new home.
If you are a Veteran or Reservist here in Phoenix, or anywhere else in Arizona, and are thinking about buying or refinancing your home and aren’t sure if you are exempt – or even have questions on VA home loans and the Funding Fee, then please give us a call or shoot us an email. Our team would be glad to help assist you.
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3215 W. Ray Road Chandler, AZ, 85719 USA
david@davidrider.com • 480-788-9221
January 23rd, 2012 at 8:12 pm
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