iFreedom Direct is pleased to report that funding fees on certain types of VA home loans have been reduced due to changes in federal legislation. First time VA loan users will now pay 1.4% for purchase and refinance loans
SALT LAKE CITY, UT – iFreedom Direct, a national VA specialty lender, is pleased to report that funding fees on certain types of VA home loans have been reduced due to changes in federal legislation.
As a result of Public Law 112-26, Restoring GI Bill Fairness Act of 2011 and previous legislation, reduction in funding fees for the VA home loan program will take place for loans closed on or after October 1, 2011. First time VA loan users will now pay 1.4% for purchase and refinance loans, down from 2.15%. And, reservists and National Guard members will now pay 1.65%, down from 2.4%. Subsequent VA loan borrowers who put down less than 5% for purchase and regular refinance loans will pay a reduced VA funding fee of just 2.8 %, down from the previous 3.3%. Surviving spouses and disabled vets are still exempt from the VA funding fee.
Further reductions on repeat-use VA funding fees are scheduled annually until 2013. By October 1, 2013, subsequent users with less than 5% cash down will pay just 1.25% for VA funding fees. Streamline and Assumption VA funding fees will remain at .5%.
iFreedom Direct’s Marketing Director, Justin Bath, says, “Reduced VA funding fees make the military mortgage program even more affordable to eligible borrowers. These service members are ready to give their lives for our country and if anyone deserves to fulfill the American Dream of homeownership, they do.”
Read more: http://www.digitaljournal.com/pr/433145