Reduced Fees for VA Home Loans: Changes Coming in April 2023
VA home loans fees are going down!
If you're a qualified Service Member or Veteran looking to purchase a home, you may be interested to know that changes to VA home loans are on the horizon. As of April 7th, 2023, any loan that closes on or after that date will have reduced fees, making it easier and more affordable for qualified individuals to acquire a VA home loan.
Currently, VA home loans come with a funding fee that is typically between 1.4% and 3.6% of the loan amount. This fee is intended to help offset the cost of the VA loan program and ensure its long-term viability. However, the new changes will significantly reduce the fees qualified service members and veterans must pay.
Under the new system, the fees for first-time use of the VA loan benefit with no down payment will be reduced from 2.3% to 2.15%. Likewise, the fee for subsequent use of the VA home loan with no down payment will be reduced from 3.6% to 3.3%. The following table is an extract from the VA Circular 26-23-06, Exhibit B which shows the changes:
The VA home loan program is one of the most valuable benefits available to qualified Service Members and Veterans. It provides an affordable way to purchase a home and build equity, which can be a valuable asset for years to come. Reducing the fees associated with VA home loans will make it easier and more affordable for these individuals to purchase a home and take advantage of the benefits that come with being a homeowner.
If you're a qualified Service Member or Veteran looking to purchase a home, the changes to VA home loans that will take effect on April 7th, 2023, are good news. If you are thinking about buying a home and don’t know where to start, let me guide you through the process.
For more information about this change, check out the VA Circular 26-23-06 and Exhibit B.
