Changes to VA & USDA Funding Fees! Oct 1st 2011 – Still 100% Financing Available

This is my first blog and there has been many changes along life’s way and certainly in the lending industry.

Back in 2008 there were over 13,000 loan officer/mortgage brokers in Washington State.  Now, we are under 4,000.  It has a lot to do with all the lending and educational hurdles.  The folks in this industry typically are full-time hard working professionals.

For all those people you knew who use to do loans, here is my advertisement.

I am still in business and would be happy to hear from you!  Why would you call or want to do business with me???  Fair question.  I can say this, after licking all my wounds from this crazy business, I am still standing!  Why?  Because I love this business.

Yes, it is now more difficult to do home loans but I am still doing them and having a great deal of success by educating the buyers and sellers along with my extensive follow-up.

I can definitely say that today’s real estate agents have been knocked around harder than we (lenders) have.  The seller needs to sell even though the values have dropped.  That is not a fun conversation to have!  I get it!  For those Realtors still doing business – good job!  That will pay dividends as there is always ebb and flow, with the pendulum swinging too far left and then too far right but soon it settles in the middle and evens out.  Okay to chuckle here…For those that are new in real estate that is all you know and for the veterans, you know the motto and creed: contacts, shake those hands and plenty of face time.  That is what it is all about!

Now to address the title question: Yes, these are still 100% Financing – Zero Down Loans*

VA Funding Fees Are as Follows:

Purchase and Construction

Loan Type Down Payment Active Duty Personnel / Veterans National Guard / Reservists
Purchase & Construction 0% 2.15% Funding Fee 2.40% Funding Fee
5% 1.50% Funding Fee 1.75% Funding Fee
10% 1.25% Funding Fee 1.75% Funding Fee

All Other VA Home Loan Types (First Time Use)

Loan Type Active Duty Personnel / Veterans National Guard / Reservists
Regular Refinance
(including cash out)
2.15% Funding Fee 2.40% Funding Fee
Interest Rate Reduction
(IRRL) Refinance
0.50% Funding Fee 0.50% Funding Fee
Native American Direct Loans 1.25% Funding Fee 2.00% Funding Fee
Manufactured Housing
& Mobile Home Loans
1.00% Funding Fee 1.00% Funding Fee
VA Home Loan Assumptions 0.50% Funding Fee 0.50% Funding Fee

 

Additional Use / Subsequent Use:

Purchase and Construction

Loan Type Down Payment Active Duty Personnel / Veterans National Guard / Reservists
Purchase & Construction 0% 3.30% Funding Fee 3.30% Funding Fee
5% 1.50% Funding Fee 1.75% Funding Fee
10% 1.25% Funding Fee 1.75% Funding Fee

All Other VA Home Loan Types (Other Than First Time Use)

Loan Type Active Duty Personnel / Veterans National Guard / Reservists
Regular Refinance
(including cash out)
3.30% Funding Fee 3.30% Funding Fee
Interest Rate Reduction
(IRRL) Refinance
0.50% Funding Fee 0.50% Funding Fee
Native American Direct Loans 1.25% Funding Fee 2.00% Funding Fee
Manufactured Housing
& Mobile Home Loans
1.00% Funding Fee 1.00% Funding Fee
VA Home Loan Assumptions 0.50% Funding Fee 0.50% Funding Fee

The funding fee on VA Assumptions and Interest Rate Reduction Refinance Loans is currently 0.5%. This rate remains unchanged regardless of the number of times it is used.

VA funding fee must be paid within 15 days of closing or included in the loan amount.

Veterans whose entitlement is based on active duty will pay a 2.15% fee on their first VA loan and 3.30% on all future loans for the purchase of a home or cash-out refinances.

Veterans whose entitlement is based on Guard/Reserve service will pay 2.40% on their first loan and 3.30% on all future loans for the purchase of a home or cash-out refinances.

USDA – Not just for Beef! It is a loan too…. who would of guessed? Your Home Buyers????

New USDA Funding Fee Changes:

For the first time in the history of USDA, the Single Housing Guaranteed Loan Program has implemented an Annual Fee.   The annual fee will be calculated based on the guaranteed loan amount and based on the average annual scheduled unpaid principal balance for the life of the loan. 

Effective October 1, the upfront guarantee will decrease from 3.5% to 2% for purchase loans.   The up-front guaranteed fee for refinance loan transaction will remain at 1 percent.   In addition, an annual fee of .30 will be calculated when the loan is made and every 12 months thereafter until the loan is paid in full or no longer outstanding and the guarantee cancelled or expired.

Well I hope you enjoyed the reading, and if you made it this far you are still awake and ready to do some business!

Look forward to hearing from you.

David Haley

David Haley | Mortgage Loan Officer MLO-76555
Contact David Haley
425-471-6039
6100 219th St SW, Ste 480
Mountlake Terrace, WA 98043
www.DavidHaleyMortgage.com

Holly B. Avatar
From our first conversation it was clear that David is experienced and passionate in his work. Throughout the process, he provided responsive and transparent communication, along with patient, thorough explanations to questions big and small. I enthusiastically recommend David and his team to anyone, especially first-time homebuyers looking to demystify the process!
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H. B. 7/01/2025
Kyle P. Avatar
David constantly and consistently goes out of his way to make sure you're up to speed on everything that is happening in this tedious process. No matter the time of day/night, he will sit down with you and make sure you know what's happening. He is very knowledgeable and communicates very effectively with both his team and customers. I felt like he and his team made our home buying process as easy as it could possibly be.
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K. P. 6/30/2025
Ashley E. Avatar
David Haley is amazing! We were working with a mortgage broker before David that unfortunately had no idea what they were doing. They tried twice to close and couldn't figure out how to communicate with the HOA to get the appropriate docs to close on time. David came in and gave us a better mortgage option, provided better communication, and we are set to close next week. Thank you David for getting this done, educating us and providing a great experience.
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A. E. 6/13/2025
stephanie g. Avatar
David was so great and knowledgeable in every step when buying our house! He explained so much with a lot of detail to really help us as homebuyers understand everything during the process! He made it so easy, definitely will be using him again in our next home buying experience :)
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s. g. 5/11/2025
Jesus G. Avatar
Great team that explain things very well so you are never confused on what’s going on. 10/10 experience!
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J. G. 5/08/2025
Howard J. Avatar
Incredible team! Jan and David were amazing in helping my wife and I with the purchase of our second home. They walked us through every step and made the entire process as smooth and stress-free as possible. We couldn’t be more grateful — highly recommend working with them!
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H. J. 4/15/2025
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