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