Orange County FHA, VA & First Time Buyer Loan Information: Lower VA Funding Fee Means Savings for Orange County Veterans

My goal is to provide valuable information for home buyers, both First Time Buyers and Move Up Buyers. This information will be about loan programs such as FHA ,VA, Conventional Fannie Mae and Freddie Mac, Reverse Mortgages, and even Portfolio Jumbo programs. I will also touch on tax advantages of homeownership, Rent vs. Own analysis, and any other aspect of loans and home ownership that will be of interest to Orange County home buyers and homeowners.

Lower VA Funding Fee Means Savings for Orange County Veterans

The Department of Vertans Affairs announced on September 8, 2011, via VA Circular 26-11-12, that the Funding Fee will drop lower for VA loans closed on or after October 1, 2011. While we rarely get good news on the lending front these days, it is nice when something comes out that will actually save home buyers money.

New VA Funding Fee Chart

Below is a VA Funding Fee Chart comparing the old (higher) Funding Fee percentages to the new (loan closed on or after October 1, 2011).  

chart showing updated lower va funding fees

These changes will save thousands for most Veterans using VA financing to purchase homes in Orange County, where prices tend to be on the "high end" compared to most of the country. As an example, lets say Martha is purchasing a home in Irvine, CA for $600,000 using VA financing with zero down payment. If this is Martha's first time using her VA Eligibility, she would have 2.15% of the purchase price added to her loan. $600,000 * 2.15% is a $12,900 Funding Fee, resulting in a total VA loan of $612,900. But with the new lower percentages, Martha would only have 1.4%, or $8,400 added to her VA loan, a savings of $4,500. Considering that VA allows Zero Down financing in Orange County up to $700,000 and has no Monthly Mortgage Insurance like othwer types of "high loan to value" financing, it is somewhat surprising the Funding Fee was actually lowered. But we'll take it.  

Of course the first step with VA financing is always to get PreApproved!

Authored by Tim Storm, an Orange County, CA  VA Loan Loan Officer MLO 223456– Please contact my office at Home Point Financial for more information about an Orange County, CA Jumbo Mortgage. 949-829-1846.

Contact us for your Orange County VA Loan:

949-829-1846 | tstorm (at)

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Comment balloon 0 commentsTim Storm • September 21 2011 01:10PM