VA Home Loan Funding Fee change for Homebuyers
By DeAndrea "Dee Dee" Jones, DMVRealEstateChick
(Found It, LLC)
If you are a veteran, active duty, or a reservist prospective home buyer. Listen up Dept of Veteran Affairs has announced new changes. According to update 26-11-12 the change will affect the funding fee. The funding fee is the amount due up front or can be financed into the loan amount on a VA Loan. The purpose of this fee is to act as a mortgage insurance for VA lenders and is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit,. The benefit of using a VA loan versus an FHA loan is there is no monthly mortgage insurance premium paid. This can make a monthly payment on a VA loan significantly less. Interest rates are still at record lows and sales prices are very reasonable. If you are ready to buy or want to hear more abou...