Va loan changes

[jigman51]

Son is buying a house outside Fort Knox. He is using his VA loan and they charged him $7000, which was rolled back into the loan. VA now charges a 3% fee if you don't put 20% down. If he wanted to do that, why use VA? They said this change started in Jan 2020. Anyone familiar with this change?

[ourflat]

No, but I had to pay that fee in 2006 and in 2019 the VA refunded everyone who had at least a 10% disability. If they are wrong then he will be refunded this fee when an audit is conducted. I was under the impression if it is your 1st loan with the VA the fee is waived. Lot’s of things changed from laws that were past 2016 under Obama that are now law.

Frank

[1stindoor]

Not aware of it either. I'll do some homework and see what I can find out. Thanks.

[06 SB]

Is it his first VA loan?

[1stindoor]

From the VA:
https://www.va.gov/housing-assistanc...closing-costs/


Will I have to pay the VA funding fee?

If you’re using a VA home loan to buy, build, improve, or repair a home or to refinance a mortgage, you’ll need to pay the VA funding fee unless you meet certain requirements.
You won’t have to pay a VA funding fee if any of the below descriptions is true. You’re:

• Receiving VA compensation for a service-connected disability, or
• Eligible to receive VA compensation for a service-connected disability, but you’re receiving retirement or active-duty pay instead, or
• The surviving spouse of a Veteran who died in service or from a service-connected disability, or who was totally disabled, and you're receiving Dependency and Indemnity Compensation (DIC), or
• A service member with a proposed or memorandum rating, before the loan closing date, saying you're eligible to get compensation because of a pre-discharge claim, or
• A service member on active duty who before or on the loan closing date provides evidence of having received the Purple Heart

You may be eligible for a refund of the VA funding fee if you're later awarded VA compensation for a service-connected disability. The effective date of your VA compensation must be retroactive to before the date of your loan closing.
If you think you're eligible for a refund, please call your VA regional loan center at 877-827-3702. We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.


VA funding fee rate charts

Effective January 1, 2020, based on Public Law 116-23
Review the VA funding fee rate charts below to determine the amount you’ll have to pay. Down payment and VA funding fee amounts are expressed as a percentage of total loan amount.
For example: Let's say you’re using a VA-backed loan for the first time, and you’re buying a $200,000 home and paying a down payment of $10,000 (5% of the $200,000 loan). You'll pay a VA funding fee of $3,135, or 1.65% of the $190,000 loan amount. The funding fee applies only to the loan amount, not the purchase price of the home.
VA-backed purchase and construction loans

Rates for Veterans, active-duty service members, and National Guard and Reserve members

	If your down payment is…	Your VA funding fee will be…
First use	Less than 5%	2.3%
	5% or more	1.65%
	10% or more	1.4%
After first use	Less than 5%	3.6%
	5% or more	1.65%
	10% or more	1.4%

Note: If you only used a VA-backed or VA direct home loan to purchase a manufactured home in the past, you’ll still pay the first-time funding fee.

[jigman51]

Is it his first VA loan?

Yes it is his first time use.

[Crestliner16]

I have a VA refinance loan. I didn't have any fees. But this may be, because it is a refinance.

[NAMVET1968]

.