SAVINGS FOR VETERANS:
Veterans have an opportunity to save! The VA has reduced funding fees allowing Veterans to spend less on purchasing or refinancing their home.
HR 1383: Restoring GI Bill Fairness Act of 2011
Effective Oct 1st, the Funding Fee on Veteran home loans will be lowered as follows:
1. First time users of their HR entitlement will have priority seeing a drop from 2.15% to 1.4%.
2. Subsequent users will see a drop from 3.3% to 2.8% with further reductions from 2.15%-1.25% in 2012/13.
3. Veterans making 10%-5% down payments will see their funding fees drop as low as half a percent.
4. National Guard and Reservists will have a varied decrease.
What makes this intriguing?
FHA and USDA charge monthly fees on top of the money collected upfront. This reduction in funding fees aims to significantly save money for returning service members. It is a fish and bait tactic to use the already very low mortgage rates in addition to the HR 1383 to draw out Vets who have been wishing and waiting to buy.
Bozeman Montana Real Esate.net can help you take the next step and buy a home!