VA Funding Fee

VA Funding Fee Update:

The Department of Veterans Affairs announced that on November 21, 2011, the President signed H.R. 674 which included a provision which raises funding fees to the pre-November 18, 2011 levels. The fees specified in the provision will remain in effect through September 30, 2016.

Loans that closed November 18, 2011 through and including November 21, 2011 were eligible for the lower funding fees as stated in VA Circular 26-11-12, dated September 8, 2011.

•    If the higher funding fees were collected from the veteran at closing during this time period, the difference will be refunded to the veteran:
o    If paid by veteran at closing – check will be issued
o    If financed into the loan amount – principal curtailment will be applied

Loans closing November 22, 2011 through and including September 30, 2016 are subject to funding fees which were in effect prior to October 1, 2011.

VA Funding Fees are available for viewing in Exhibit A of VA Circular 26-11-19 located at http://www.benefits.va.gov/homeloans/new.asp