Distinguished active-duty military members who received the esteemed purple-heart medal for service during combat are now eligible to obtain a VA home loan free of the VA funding fee. Home re-finance loans are also included in this benefit. This translates to considerable savings with the funding fee ranging from 2.3 to 3.6 percent of the VA loan with no down payment. The VA funding fees increased slightly in January 2020.
Consider that the average first mortgage reached a high of $268,520.00 in the second quarter of 2019 according to the Mortgage Bankers Association. For soldiers paying the lower first-time buyer VA funding fee of 2.3 percent, this would amount to a hefty savings benefit of $6,175.96 on that loan amount.
Disabled veterans have been beneficiaries of the funding-fee exemption for many years. The passing of the Blue Water Navy Vietnam Veterans Act of 2019 entitled active-duty military members endowed with the purple- heart award to become the newest recipients beginning January 1, 2020.
The Department of Veterans Affairs requires proof of the purple-heart award to confirm eligibility and service members must be on active duty while they close on the home loan.
Contact A Plus Mortgage to find out if you qualify for a VA loan and learn of any additional VA benefits that may be available to you.
References:
US Department of Veteran Affairs: Blue Water Navy Veterans and Your Home Loan Benefits; https://www.benefits.va.gov/homeloans/bwnact.asp
US Department of Veteran Affairs: Funding Fee Tables; https://www.benefits.va.gov/HOMELOANS/documents/docs/funding_fee_table_01012020.pdf
Mortgage Bankers Association: Mortgage Production Profits Rise in Second Quarter of 2019 to Highest Since 2016; https://www.mba.org/2019-press-releases/august/mortgage-production-profits-rise-in-second-quarter-of-2019-to-highest-since-2016
Military.com: Purple Heart Recipients Can Save Thousands on VA Loan Fees; https://www.military.com/daily-news/2019/08/05/purple-heart-recipients-can-save-thousands-va-loan-fees.html
