2023 VA Funding Fees

The funding fee for VA mortgages for 2023 have been announced. Great news – the fees for 2023 have been reduced from 2022!

The VA Funding Fee is a one-time charge often added to the loan amount and financed over the term of the mortgage. VA mortgages do not have monthly mortgage insurance premiums (unlike FHA mortgages).

Here are the VA Funding Fees for 2023:

VA Purchase or Construction Loans – First Use:

  • Down payment less than 5%: 2.15%
  • Down payment 5% or more: 1.5%
  • Down payment 10% or more: 1.25%

VA Purchase or Construction Loans – Subsequent Use:

  • Down payment less than 5%: 3.3%
  • Down payment 5% or more: 1.5%
  • Down payment 10% or more: 1.25%

VA Cash-Out Refinance

  • First Use: 2.15%
  • Subsequent Use: 3.3%

Other VA Home Loan Types

  • Interest Rate Reduction Refinance Loan (IRRL): 0.5%
  • Manufactured Home Loans (not permanently affixed): 1%
  • Loan Assumptions: 0.5%
  • Native American Direct Loan (Non-IRRL): 1.25%

Some Veterans do not have to pay a VA funding fee if:

  • They are receiving VA compensation for a service-connected disability, or
  • They are eligible to receive VA compensation for a service-connected disability, but are receiving retirement or active-duty pay instead, or
  • They are receiving Dependency and Indemnity Compensation as the surviving spouse of a Veteran, or
  • They are a service member who has received a proposed or memorandum rating before the loan closing date that says they are eligible to get compensation because of a pre-discharge claim, or
  • They are a service member on active duty who, before or on the loan closing date, provides evidence of having received the Purple Heart.

VA home loans are an excellent mortgage program with competitive rates, low to no-down payment and no monthly mortgage insurance for Veterans who have earned this benefit.

Thank you to our Veterans for your service!


BREAKING NEWS: HUD Reduces FHA Mortgage Insurance

FINALLY!!! HUD just announced that the mortgage insurance on FHA mortgages will be reduced by 30 basis points on most mortgage loans.

FHA mortgages typically have two forms of mortgage insurance. Borrowers pay for both an upfront premium, which is often added to the loan amount and financed over the life of the loan and an annual premium, which is paid monthly. The mortgage insurance which has been reduced is the annual mortgage insurance. [Read more…]

Just Released: Resources for First Time Homebuyers

I have just created a page on my blog dedicated to first time homebuyers. Right now, you can access this on the column to the right.

I will be updating this page with information that first time homebuyers or people who have not bought a home recently may find useful. Currently, I have a couple of different scenarios intended to help demystify the homebuying process. I hope you’ll check it out!

If you or anyone you know are thinking about buying their first home or re-entering the home buying market, please feel free to share this with them. 🙂

And of course, I would love to help you with your mortgage needs. Please contact me if I can be of any assistance.

A Great Alternative for VA Loans

Many Veterans who have served our country have earned the right to have a VA mortgage loan. It’s unfortunate that some sellers as well as real estate agents have a bad image of VA loans and often discourage them. Many years ago, VA loans were sometimes more challenging than conventional financing – this is rarely the case anymore. Some people may falsely assume that if a Veteran is using a VA loan, they must have poor credit or not enough funds for a down payment. A majority of the Veteran’s I have provided mortgages for have excellent credit and plenty of funds for down payment, they opt for the VA loan because they either don’t want to use all of their funds for down payment, or the VA mortgage loan could be providing a lower interest rate than what they would receive with conventional financing. Bottom line, it’s their entitlement that they sacrificed and worked hard to earn. [Read more…]

Should you wait to buy a home or buy now?

Hear me out on my latest video and let me know if I can help you with your mortgage needs.

Super Fast Closings!

I have been with New American Funding for three months now and have had the pleasure of helping clients with their home purchase and refinancing mortgages. I have been very impressed with how fast we are able to close without sacrificing service. [Read more…]

My Interview with Market Share’s Tony Blodgett

I had a great time meeting Tony Blodgett at New American Funding’s studio in the Everett office to record an episode of Market Shares. We talk about the transition from Mortgage Master to New American Funding, how I wound up in lending and the current market and more!

Thanks for the interview, Tony!

Mortgage Rates trending Lower

Freddie Mac’s PMMS (Prime Mortgage Market Survey) was released this morning showing that mortgage rates have been trending lower.

Please remember, the rates posted above from the PMMS are based on a survey from LAST WEEK… so these interest rates are expired and really just show where interest rates are trending. Please contact me for current mortgage rates for your personal scenario. [Read more…]