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Los Angeles Veteran Home Buyers Benefit From Lower Funding Fees (as of November 18, 2011)

N.B:  On the day before I published this, HR 674 passed, reverting the funding fee amounts to the “old” levels.  It was updated in VA Circular 26-11-19, published November 22, 2011.  The “new” lower funding fee schedule was in effect for three days, from Nov 18-21.  Sorry for the confusion.

The Veterans Administration announced that is will be charging lower funding fees, to VA-eligible homebuyers, when issuing the VA mortgage guaranty.  Previously, Los Angeles veterans, looking to purchase their first home with no-money down, paid a 2.15% funding fee.  Last week, that funding fee was reduced to 1.40% of the loan amount. 

Veterans, who were using the VA mortgage for the second (or third, fourth, etc) time, used to pay a 3.30% funding fee for a VA zero-down home loan.  That fee has been reduced to 2.80%.

Los Angeles veterans, who choose to use a down payment when purchasing a home, can still use their VA home loan.  The new funding fee, for a 5% down payment, is now .75%.  The new funding fee, for a 10% down payment, is now .50%

A full chart of the new VA funding fee schedule is available on Brian Brady's Mortgage Rates Report.  Please direct any and all questions via telephone to (858)-777-9751