VA Funding Fee/FHA Monthly MCC/Conventional MI

Question

Questions have arisen about how the VA Funding fee is being determined. There are 1.75% Funding fees for VA loans when no VA scenario calls for a 1.75% funding fee. Additionally, the FHA Monthly MCC rate & Conventional MI rates need to be manually entered by loan officers, which does not seem right.

There seems to be no documentation on this topic. What is everyone else doing to ensure accurate information?

Answer

There are some defaults for the upfront fee percentage calculations, but we generally get these details directly from the pricing engine.

Here’s what we do today for VA loans:

FHA UFMIP: defaults to 1.75%
VA Funding Fee: defaults to 1.75%
USDA Guarantee Fee: 1%
FHA and USDA programs also require a monthly mortgage insurance premium, if it is returned by the pricing engine, we will capture this.

There are additional enhancements on the roadmap to add additional inputs for VA loans. Meanwhile, the FHA UFMiP, VA Funding Fee, and USDA Guarantee fee percentage field can be configured to be editable if desired. Contact your Blend representative or reach out to Blend Support for this request.