mortgage financing and programs

Archive for November, 2010

New Exemption for VA Loan Funding Fees

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The Department of Veterans Affairs recently announced an important change to the VA home loan guaranty program. Exemptions for the VA Loan funding fee, which currently is listed at 2.15% of the loan value for no-down payment VA mortgages, has been expanded to include vets that have gone back to active duty after previously qualifying for disability or retirement compensation. Prior to October 2010 veterans had to qualify for disability compensation to qualify for the funding fee exemption. In recent years it has become increasingly common for veterans to be recalled to duty or reenlist, thus effectively disqualifying them for the VA Loan Funding Fee exemption. With this recently announced change to the program these individuals will remain qualified.

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