The U.S. Department of Veterans Affairs (“VA”) recently issued Circular 26-23-06 to announce that funding fees have been reduced for VA guaranteed purchase, construction, and cash-out refinance loans closed on or after April 7, 2023, and prior to November 14, 2031.
The Circular provides the current funding fee percentages for VA transactions in Exhibit A and new funding fee percentages for VA transactions closed on or after April 7, 2023, in Exhibit B.
The new funding fee percentages are as shown below:
There is no change to funding fee percentages for other VA loan types including Interest Rate Reduction Refinance Loans (IRRRLs), manufactured home loans (not permanently affixed), loan assumptions, and Native American Direct Loans (Non-IRRRL).
