VA Funding Fee Reduction

VA was supposed to lower their funding fee for loans that close on or after October 1st, 2011 but they have postponed it until November 18th.  The new fees are the lower percentages on top.

What is the VA Funding Fee?  The Funding Fee is a one time upfront mortgage insurance premium charge based on the loan amount.  It is a cost but it gets rolled into the new loan just like FHA.  Unlike FHA, VA does NOT have a monthly mortgage insurance premium.

Transaction Borrower Is Entitlement Mandatory Funding Fee 0-4.99% Down 5-9.99% Down Greater than or equal to 10% Down
Purchase Veteran 1st Time Use 1.40%2.15% 0.75%1.50% 0.50%1.25%
Veteran Subsequent Use 2.80%3.30% 0.75%1.5% 0.50%1.25%
Reservist/National Guard 1st Time Use 1.65%2.40% 1.00%1.75% 0.75%1.50%
Reservist/National Guard Subsequent Use 2.80%3.30% 1.00%1.75% 0.75%1.50%