VA loans are a powerful benefit for military members and veterans. They do come with a "funding fee" that ranges from 1.25% to 3.3% of the loan depending on several factors. The House has proposed legislation to raise these fees to range from 1.45% to 3.8%. Also, currently for any veteran with any level of rated disability these fees are waived. But under this legislation, this waiver would go away for all disabled veterans except those with a 100% disability rating. If the legislation is passed, it will most likely go into effect beginning January 1, 2019 and the increases will revert to the current rates September 30, 2019. It is not clear whether waivers will then be restored to all disabled veterans.
This legislation is designed to offset a $1 Billion shortfall for funding for veterans affected by agent orange.
We will post updates on this site as we get them. Joe and Deb