On Veterans Day, the U.S. House passed a big veterans benefits package that includes changes to VA home loan fees. I've already had a few folks around Cannon AFB ask me what it means for them, so here's my plain-spoken rundown on what's in it, what isn't decided yet, and what VA just clarified about funding fee refunds.

What the House passed

The bill is H.R. 9237, the Take Care of America's Veterans Act. It bundles dozens of measures on veterans' health care, education, jobs, and benefits. To help pay for them, it raises some VA mortgage fees. Here's what HousingWire and National Mortgage Professional reported:

  • The VA streamline refinance (IRRRL) funding fee would nearly triple. The IRRRL is the simple refinance many VA homeowners use to lower their rate.
  • The fee to assume an existing VA loan would double. An assumption lets a qualified buyer take over a seller's existing VA mortgage, sometimes at a lower rate than what's available today.
  • Current funding fee rates on VA purchase and cash-out refinance loans would be extended for more years instead of stepping down as scheduled under current law.
  • Some National Guard and Reserve members could gain VA loan eligibility under a separate provision, though some of those borrowers would pay an added funding fee.
  • Veterans who are exempt from the funding fee today would stay exempt.

The most important part: it's not law yet

The bill still has to pass the Senate and be signed by the President. Today's VA funding fees haven't changed. The House Veterans' Affairs Committee chairman has said he's working with the Senate to finish it before the end of the year, and the Mortgage Bankers Association has pushed back on paying for new benefits with higher mortgage fees. I'll keep an eye on it and post an update if it moves.

What it could mean around Clovis and Cannon AFB

  • If you already have a VA loan and have been thinking about a streamline refinance, the math could change if this passes. A higher fee means it takes longer to come out ahead. That doesn't mean you should rush, but it's a good reason to run the numbers with me now instead of later.
  • If you're buying a home with an assumable VA loan, a higher assumption fee would trim a bit of that advantage. Assumptions can still make sense, and the details matter.
  • If you're PCSing in and buying with a VA loan, the purchase funding fee would stay where it is today under this bill rather than going up.

VA also cleared up a funding fee refund myth

On November 12, VA published a helpful article about funding fee refunds. You may have seen social media posts claiming any veteran who gets a disability rating after closing gets their funding fee back. VA says that's not always true. What matters is the effective date of your disability compensation. If that effective date is before your loan closing date, you may qualify for a refund, and VA says it reviews those cases automatically and pays eligible veterans directly. If the effective date falls after closing, you generally wouldn't qualify on that loan.

So if you have a disability claim pending and you're getting close to buying, tell me early. Timing can matter, and it's worth knowing where your claim stands before closing day.

Questions? Let's talk

Whether you're stationed at Cannon, a veteran in Portales or Curry County, or just curious whether a VA refinance or assumption makes sense for you, I'm happy to walk through your situation. Give me a call or send a message anytime, no pressure.