The U.S. Department of Veterans Affairs (VA) recently announced in Circular 26-23-06 a reduction in funding fees for purchase, construction, and cash-out refinance loans guaranteed by the VA that are closed on or after April 7, 2023. This exciting change will help to lower eligible buyers’ monthly payments when using a VA home loan. Here is a breakdown of the fee reductions you can expect:
Funding fee charges vary based on the down payment and prior usage of VA financing. Refinancing an existing loan may result in finance charges being higher over the life of the loan and a reduction of payments may reflect a longer term. Approvals are subject to underwriting and program guidelines based on eligibility.
If you have questions about VA Funding Fees or would like to start an application, fill out this form and GoVA representative will contact you to provide assistance.