January 19, 2018

Reduced Government VA Funding Fee Starting October 2011

VA Home Loan Updates



1. Purpose: This circular announces changes in funding fees for Department of

Veterans Affairs (VA) loans closed on or after October 1, 2011.

2. Fee Changes:

a. For loans closed on or after October 1, 2011, the fee for subsequent use loans with

less than 5 percent down payment and subsequent use regular refinance loans will be 2.8

percent for both active duty Service members, Veterans, and persons qualifying based

solely on service in the Reserves or National Guard. This change is due to passage of

Public Law 112-26, Restoring GI Bill Fairness Act of 2011.

b. Funding fees for loans other than subsequent use will also change for loans closed

on or after October 1, 2011. These fee changes were already set to change based on

previous legislation. The attached Exhibit A shows the upcoming changes.

c. Funding fees for Interest Rate Reduction Refinancing Loans and Assumptions will

not change. They will remain at .50 percent.

3. Possibility of Future Funding Fee Changes: Should Congress pass legislation

making additional changes to the funding fee structure, VA will immediately publish a

notice on our website and the VA Funding Fee Payment System (FFPS), and soon

afterward, issue another Circular. Lenders should closely monitor our website and VA

FFPS for information on funding fee changes.

4. Rescission: This circular is automatically rescinded on October 1, 2012.

Click the Link Below to View the Chart (Page 2). 

VA funding fee notification

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