The funding fees for some of the loans that it guarantees will be reduced by the Department of Veterans Affairs. They will return to pre-2020 levels. This will make it easier for veterans to obtain a VA loan. Depending on the downpayment, borrowers may see a.15%-.30% reduction in their up-front payments. For first-time VA buyers with less that 5% down payment the funding fee will drop to 2.15% from 2.3%. A 1.25% funding fee will be attached to any loan for borrowers who have less than 10% down payment. This is a decrease of 1.4%. To finance the bill, Congress authorized a two-year increase in funding fees for VA mortgages, from January 2020 to April 20,23. This is a decrease from 1.4%. Others have criticized the use funding fees to finance bills or programs that do not relate to VA housing. However, this recent change will save homebuyers hundreds in upfront costs. The Federal Housing Administration (FHA) and Federal Housing Finance Agency (FHA) have recently announced a 30 basis point reduction in its mortgage insurance premiums to help homeowners deal with inflation. The FHFA also made changes to its risk-based pricing guidelines earlier in the year to lower loan prices for some low-to-moderate-income borrowers by offering cross-subsidies to others.