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Kentucky VA Announces Reduced Funding Fees
Effective with loans closing on and after 04/07/2023, VA has announced new lower loan fee rates for Purchase and Cash Out Refinance loans. There is no change to the funding fees for other Kentucky VA Home Loan Types. 

• VA Purchase / Construction Loans
  • First Use
    • Down Payment Amount:
      • Less than 5%: Funding Fee 2.15%
      • 5% or more down payment: 1.5%
      • 10% or more down payment: 1.25%
  • Subsequent Use
    • Down Payment Amount:
      • Less than 5%: 3.3%
      • 5% or more down payment: 1.5%
      • 10% or more down payment: 1.25%
• VA Cash-Out Refinance
  • First Use: 2.15%
  • Subsequent Use: 3.3%
• Other VA Home Loan Types
  • Interest Rate Reduction Refinance Loan (IRRRLs): 0.5%
  • Loan Assumptions: 0.5%

Please note the following:

• For standard purchase loans, the reduced funding fee is based on the sales price. 
• For construction purchase loans, equity in the secured property may be used as a down payment for calculating the reduced funding fee.