The VA has gone back and forth on this a few times, but as of now VA home loan lenders have lowered the VA funding fee for VA borrowers in California. This is really terrific news because VA home loans already do not require monthly mortgage insurance, and now even the up front funding fee has been reduced substantially. Below are the changes:
| Active duty or Veteran customers | National Guard / Reservist customers |
| First-time use | Subsequent use | First-time use | Subsequent use |
| Through Sept. 30 | On or after Oct. 1
|
Through Sept. 30
|
On or after Oct. 1
|
Through Sept. 30
|
On or after Oct. 1
|
Through Sept. 30
|
On or after Oct. 1
|
| Purchase or Construction loans with downpayment of: |
| 0% | 2.15% | 1.40% | 3.30% | 2.80% | 2.40% | 1.65% | 3.30% | 2.80% |
| 5% - less than 10% | 1.50% | 0.75% | 1.50% | 0.75%
|
1.75%
|
1.00%
|
1.75%
|
1.00%
|
| Greater than or equal to 10% | 1.25% | 0.50% | 1.25% | 0.50% | 1.50% | 0.75% | 1.50% | 0.75% |
| Refinance: Cash-out Refinance or Rate/Term Refinance |
| 2.15% | 1.40% | 3.30% | 2.80% | 2.40% | 1.65% | 3.30% | 2.80% |
| Interest Rate Reduction Refinance (IRRRL) |
| 0.50% | 0.50% (no change) |
Remember the VA funding fee is not paid out of pocket, it is rolled into the loan balance. So now with first use of VA eligibility in California the funding fee is 1.4% dropping from 2.15%. That is a $2,625 savings on a $350,000 loan! An if you put 5% down you can get the funding fee all the way down to .75%. And remember, for veterans who receive any disability pay the funding fee is waived!
Also, when you file your tax returns at the end of the year, make sure you speak to your account about the tax deductibility of your funding fee. This can be a very big tax write off for you.
If you have any questions or would like to be approved for a VA home loan anywhere in the state of California please don’t hesitate to call at 858-922-7899 or email at homeloan8@gmail.com
Here are some highlights of VA home loans in California, by the BEST loan available today and a really great benefit for active military and veterans that are serving and have served the country:
- VA loan requirements only require two years after a foreclosure, short sale or bankruptcy to get a VA home loan in California
- VA loan limits are much higher now than FHA or conventional loans. San Francisco, San Jose, Oakland VA loan limits go to $1 million with zero down. Los Angeles, Orange County, Santa Ana, Anaheim VA loan limits are $700,000 with zero down. San Diego VA loan limit is $537,500. Much of the rest of the state such as Sacramento, Santa Rosa, Fresno, Bakersfield, Riverside go up to $417,000 VA loan limit with zero down
- VA funding fee is waived for veterans that receive disability pay
Best Regards, Rob Chomentowski 858-922-7899, homeloan8@gmail.com Sr. Loan Officer (and VA specialist)
VA Funding Fee is Lowered in California is a post from: VA Home Loans Call Rob 858-922-7899
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