VA Loan Funding Fee Changes Coming November 18, 2011
October 26, 2011 
Bruce Reichstein 
Earlier we reported on a Department of Veterans Affairs announcement which updated VA loan funding fee rates. The changes came as a result of the passage of the Veterans Health Facilities Act Capital Improvement Act of 2011. There was some confusion over VA loan funding fees as a result of the changes–especially where the funding fees were affected over the short term.
A VA circular announced the funding fees as applicable over a series of dates. One important milestone in the funding fee changes happens on November 18, 2011 when the VA loan funding fee structure will revise one last time to reflect a “stable” funding fee structure–one that would not change again unless the VA or the federal government took steps to alter it.
Starting on November 18, 2011, the VA loan funding fee structure for first-time use loans will be as follows:
First Time VA Loans On or After November 18, 2011 with down payments of five percent or less:
Active Duty 1.40%
Guard/Reserve 1.65%
On or After November 18, 2011, first-time VA loans with down payments of at least five percent but less than 10%:
Active Duty 0.75%
Guard/Reserve 1.00%
On or after November 18, 2011, VA loans with a down payment of 10% or more:
Active Duty 0.50%
Guard/Reserve 0.75%
As stated in other blog posts, for purposes of calculating the VA loan funding fee, “Active Duty” does not refer to the borrower’s current military status–an “active duty” member is someone who served on active duty and is eligible to apply for a VA loan as such regardless of retirement, military separation, etc.
The VA loan funding fees show here do not apply to those who are eligible for exemption from VA loan funding fees due to VA compensated injuries or disabilities.
We will cover VA loan funding fees for subsequent use VA loans in another blog post.
Tags: 
/does any reduction apply to no down payments? we are due to close nov 15 and do not want to miss out on this.. any chance of early reduction? or rebates? thanks
Ask your lender which rate applies to your specific circumstances based on your closing date–if you could qualify for a lower funding fee based on a closing date that’s only days away from the new funding fee rates, ask your lender and the seller if it’s possible to adjust the closing date.
I am a Viet Nam Vet, 4 Years Active service, non service connected disability,does one of the above apply to myself. Changes coming on Nov. 18,2011. Please respond, thank you
Hi John–not quite sure what you’re asking. Can you provide a bit more detail about the information you’re looking for? Many thanks…
what is the funding fee for a first time user, national guard veteran on a cash out finance?
can the cash out be 100% of the appraised value?
thank you
Hi Toni—VA loan funding fees for cash out refinancing for first-time use are 1.65% for Guard/Reserve at the time of this writing. VA Loan rules allow up to 100% but your lender may have additional rules that affect that amount. You can find more information on the VA loan funding fee tables here:
http://www.valoans.com/va_facts_funding.cfm
thank you.
what is the funding fee as of the November 18th congressional meeting/changes? thank you
Hi Toni–the funding fee changes for post November 18 transactions are spelled out in the article, but they may be changed soon to the higher, pre-November 18 rates once the President signs legislation into law affecting those rates.
VA funding fees: my wife and I are both active duty and buying a home, closing Dec 6, 2011, with a first time use VA loan. We have already locked in (a couple weeks ago) and are putting around 9% down on a $850k loan. Our lender promised us a .75% funding fee based on the above article but just called today to day the fees have suddenly changed without notice to 1.5%. Is this true and is there some sort of grandfather clause? This is an unexpected increase of over $5,500 for us and is not fair this late in the game.
Hi Michael,
The official VA loan funding fee table as of the time of this writing can be found at http://www.benefits.va.gov/homeloans/docs/funding_fee_tables.doc
the fees did change, but you should contact the VA about any possible recourse based on the changing rates—no promises are implied, but you should call them to see if there are any details you should know. A list of VA Toll-Free numbers is at https://iris.custhelp.com/app/answers/detail/a_id/1703 or you can call 1-800-827-1000.
My husband and I are closing on a house Dec 16, 2011. We did not put any money down, and the house is selling for $273,500. Will we receive the VA funding fee at 1.4%, for a fee of $3829?
Kind regards,
Lauren
Hi Lauren, thanks for your question–you can find VA loan funding fee information for all loans closing after November 21, 2011 at http://www.vanewsblog.com/2011/11/va-loan-funding-fees-for-loans-closed-on-or-after-november-22-2011/
I got pre approved for a loan from quicken loan on Dec 22, 2011, the loan was a FHA 30year fixed in the amount or 243,662 with me having a down payment of 8700 dollars. I was told by the loan officer I did not meet the VA requirements for a loan because of the new changes that happen in Nov. I make 69,000 dollars a year and have a credit score of 665, I want to know is the new change VA has in place stopping me from getting a VA loan with what I make and my score.
Hi Craig, thanks for your question. Was your lender any more specific about why you “weren’t eligible” for a VA loan? Which changes did he say specifically affected your application?