SUBJECT: Updates to VA Funding Fee
DATE: February 23, 2023
VA published Circular 26-23-06 announcing Funding Fee reductions effective for loans with a NOTE date of April 7, 2023, and after.
Overview
- The reduction is 0.15% except as noted below:
- The reduction is .30% for subsequent users with less than 5% down on purchase transactions
- The reduction is .30% for subsequent users on cash-out transactions
- There is no change to existing fees/policy for:
- Streamline refinance transactions where the funding fee remains at 0.50%
- The eligibility of veterans who are considered exempt from paying the funding fee. REMN’s product guidelines contain a section dedicated to requirements for exemption of the funding fee
