The first change is the reduction of the VA Funding Fee. This is great news for anyone, active duty, retired or a military survivor who is eligible to use VA Loan Benefits in Northern Virginia. The funding fee for a first time user has been reduced from 2.15% to 1.40%. If you were purchasing a $400,000 home prior to this change your funding fee would have been $8600. With the change your funding fee will now by $5600. Sweet! If you are a repeat VA home buyer the fee has been reduced from 3.3% to 2.8%
The second change is the reduction in the maximum limit for FHA Loans for Northern Virginia. Unfortunately the FHA has reduced the upper loan level limits for Northern Virginia from $729,750 to $625,000. It’s hard to say whether this will have a significant impact on buyers in the area. Searching the MLS showed a total of 46 sales with FHA loans versus 1089 listings sold with conventional financing ( January 1, 2011 to October 1, 2011 sales per MRIS data). Not a significant percentage of total sales.
If you have just started your Northern Virginia home search check with your mortgage professional to discuss if the VA Funding Fee or FHA Loan Limits impact your financing options. If you need a recommendation for a local lender give me a call and I’ll be glad to share a few recommendations of lenders to meet with. If you aren’t currently represented by a Realtor® and are searching for a new home in Northern Virginia including Alexandria, Fairfax or Prince William Counties let me know if I can be of assistance to you.