Great News For Military Homebuyers

GREAT NEWS for Military Homebuyers!

Starting this spring, owning a home will become more affordable for Military Homebuyers.

Funding fees for VA loans have just been updated and they will be decreasing for most loan scenarios.

For a quick example, a homebuyer taking out a VA loan of $400,000 with zero down will have a funding fee of 2.3% and would have to pay $9,200 in funding fees upfront or roll this amount into their loan.

In April, the fee will be reduced to 2.15%, when the veteran is using entitlement for the first time. This homebuyer would only have to pay $8,600 in funding fees upfront. This would result in a savings of $600.

And since the funding fee is a percentage of the loan, the savings will increase with the price of the home.

It's important to note that the VA funding fee will vary based on the loan type and the homebuyer's military service history.

Sources:

https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-23-06-exhibita.pdf

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.