VA issued Circular 26-23-06 (Circular), reducing the funding fee for purchase or construction loans, and cash-out refinance transactions. Per the Circular, VA generally reduced the funding fee by .15%. However, VA reduced the funding fee by .3% for a subsequent use funding fee charged in connection with a purchase or construction loan with less than 5% down, or a cash-out refinance. The reduced funding fees are effective for loans closed on or after April 7, 2023.
See Exhibit A and Exhibit B for the applicable loan fee tables.
Click to view the VA Circular 26-23-06: https://www.tenaco.com/wp-content/uploads/2023/02/VA-Circular-26-23-06-02-14-23.pdf
Click to view the VA Circular 26-23-06 – Exhibit A: https://www.tenaco.com/wp-content/uploads/2023/02/VA-Circular-26-23-06-Exhibit-A-02-14-23.pdf
Click to view the VA Circular 26-23-06 – Exhibit B: https://www.tenaco.com/wp-content/uploads/2023/02/VA-Circular-26-23-06-Exhibit-B-02-14-23.pdf
