The Department of Veterans Affairs has updated the VA Loan Funding Fee structure and issued new guidance to lenders about how funding fee payments are handled.

President Barack Obama signed H.R. 674, The Vow To Hire Heroes Act, which modified VA loan funding fees to keep them at their higher levels prior to the November 18, 2011 changes.

According to the Department of Veterans Affairs, the new, higher VA loan funding fees remain in effect until September 30, 2016.

VA Circular 26-11-19 states that for loans closed between November 18 through and including November 21, 2011, “Funding fees for loans closed during this period will be the lower fees cited in the Department of Veterans Affairs (VA) Circular 26-11-12, dated September 8, 2011.”

For VA home loans closed November 22 through and including September 30, 2016, the VA states, “Funding fees for loans closed during this period will be the same as those that existed prior to October 1, 2011.”

For VA Interest Rate Reduction Refinancing Loans (IRRRLs) and Assumptions, the new VA guidance states, “Funding fees for these loans remains at .50 percent.”

We’ll discuss specifics of new VA loan funding fees in another blog post.

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