Fall is a time of change- change in color of trees, temperatures, weather and October 1 is going to be a date for many government loan changes.
Changes to FHA Maximum loan amounts have been announced (see my previous blog post) lowering many county maximum loan amounts.
VA has just announced changes to the Funding Fee (similar to the FHA Upfront mortgage insurance premium) based on the amount of downpayment. The funding fee is being lowered which will reduce the amount the Veteran has to pay since the Funding Fee is usually financed.
The changes are as follows:
Veteran putting down less than 5% pays 2.15% now – the fee will be reduced to 1.4% for application on or after October 1, 2011.
Veteran putting down at least 5% but less than 10%- the fee will be reduced from 1.5% to .75%.
Veteran putting 10% or more downpayment the fee will be reduced from 1.25% to .5%
These fees apply for all first time users of this benefit. Funding fees will also change for subsequent benefit users.
Feel free to call 440.452.3894 with questions or apply 24/7 at www.firstplacebank.com/lizschneider.
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