VA Loan Changes in 2020

Using VA Financing is an excellent program for Veterans to purchase a home with some advantages that non-Veterans do not have access to. The most appealing feature to a VA loan is zero down payment or 100 percent financing.

A VA mortgage has a “funding fee” that is added to the base loan amount unless a Veteran is deemed exempt through disability. This determination is on a case-by-case basis and is indicated on the Certificate of Eligibility.

The VA funding fee recently increased and is now as follows:

For first-time use, the fee has increased from 2.15 percent of the base loan amount to 2.30 percent of the base loan amount. The fee for subsequent uses has increased from 3.30 percent to 3.60 percent. These fee increases will remain in place for two years and in 2022 return to the levels they were in 2019 and remain there through September 30, 2029 and are expected to decrease again at that time.

For specific questions and details on other information pertaining to use of a VA loan, contact a licensed mortgage loan officer.



Dan Ranck, HomeSale Mortgage, LLC

Mortgage Loan Originator
NMLS #140989
Direct: (717) 271-2400 / efax: (866) 849-4320
dan.ranck@homesalemortgage.com / www.danranck.com

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