This is important information for anyone working with military buyers. It appears there is a vortex that has sucked up the reduced VA Funding fee for closings until November 18, 2011. Unfortunately this could have a negative impact for buyers who had anticipated the lower fee for closings in October. If you are a VA buyer in Northern Virginia please check with your lender to see how this impacts your upcoming closing.
VA Funding Fees.......Are you confused yet? It has been a frustrating week for those of us who work with military borrowers.
VA has now officially backtracked - and the funding fee reduction (see my previous post outlining and singing the praises of that reduction here), for the military homeowner and veteran which was to become effective on October 1 pursuant to VA Circular 26-11-12 has been pushed to November 18, 2011.
On October 1, VA issued a statement which was basically telling all lenders HOLD UP! But it was too late! We received notice on Monday, October 3, and loans were already closing and funding with the reduced funding fee! You can read my RANT here outlining the UNBELIEVABLE actions of all parties involved.
Now, here's the good news for five of my clients: VA gave lenders from October 3-6, to get any loans closed and funded which had been disclosed with the NEW, LOWER, REDUCED funding fee. We had a four day window of opportunity - and WE TOOK IT!
My team worked incredibly fast with title companies, real estate agents, and borrowers to move closings previously scheduled for the middle of October .....racing against time to close by October 6 and keep the reduced funding fee. And we did it! Thanks to dedicated individuals who were willing to do whatever it takes to care for our military families.
Now the bad news. Time ran out for several of my military buyers who could NOT meet the October 6 deadline, either because of appraisal, title or compliance dates - and that will cost them money. Several of these families cannot wait until November 18 for the funding fee to be reduced again- their family needs a home NOW.
How or why this happened - I will leave that to each person to figure out. The bottom line is that military home buyers who close their VA loan between October 7 and November 18, 2011, will NOT receive the reduced VA funding fee and will therefore incur higher costs.
My opinion? It is high price for our military to pay when they already give so much.
Need it in legalese? Check it out here: VA Circular 26-11-15.
Real People*Real Lives*Real Estate
Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations.
Licensed in the Commonwealth of Virginia