click here 26_11_15 for complete update

VA CHANGES THE FUNDING FEE AGAIN !!

On October 5, 2011, the President signed H.R. 2646, Veterans Health Facilities Act Capital Improvement Act of 2011. This bill includes changes to the VA Funding Fees that were just established effective October 1, 2011. There are specific changes to the Funding Fee depending on the date that the loan closes so please review the attached VA Circular 26-11-15 thoroughly. Below I have outlined the changes to the Funding Fee and effective dates

Loan Closed 10/01/2011 through 10/05/2011

Loans closed within these dates will be subject to the previously announce and reduced Funding Fees detailed in VA Circular 26-11-12.

Loans Closed 10/06/2011 through and including 11/17/2011

Funding Fees for loans closed within this time period will be subject to Funding Fee rates in effect prior to the October 1, 2011 reduction. (Yes, these are the higher Funding Fee rates)

Loans Closed on or after 11/18/2011

The Funding Fee for these loans will be reduced as shown on the attached Exhibit A. As you can see per the attachment, these rates are the same as the lower October 1, 2011 rates.

To try and simplify this, if you had a VA loan close between 10/01 and 10/05, it had the reduced Funding Fee announced effective 10/01/2011. If you have VA loans that are due to close between 10/06/2011 and 11/17/2011, these loans will be subject to the higher VA Funding Fees previous to 10/01/2011.

Loans closing on or after 11/18/2011 will revert back to the lower VA Funding Fee. Again, please see attached Circular and Exhibit A for more details.

In this announcement, it references the probability of Congress making future changes to the VA Funding Fee structure “in the coming weeks” so stay tuned.