Effective on January 1st 2020, there will be several changes to the VA loan program.
The VA loan is a mortgage loan program that provides many great benefits for veterans and their families. With the passing of the Blue Water Navy Vietnam Veterans Act of 2019, several changes are coming that every veteran considering applying for a VA loan needs to be aware of.
Removal of the Loan Limit
As of January 1st 2020, the VA will no longer cap the price of a home with no money down when purchasing a home with a VA loan, if the buyer has full entitlement . Previously, buyers in higher cost markets were sometimes unable to get VA loans that matched the price of their desired home. With this change, veterans looking to buy with a VA loan will be able to compete with conventional buyers. VA applicants will still have to qualify for the loan and meet the income and down-payment requirements.
Purple Heart Funding Fee Exemption
Another big announcement regarding the VA Loan is the elimination of the funding fee for any active duty Purple Heart recipients.
VA Funding Fee Increase
The VA funding fee will see a slight increase in January 1st 2020. Under the new provisions, the fee will be bumped from 2.15% up to 2.30%. Some will be exempt from this increase, such as those with service related disabilities.
To learn more about the changes to the VA loan, and to better understand your options and benefits, it is crucial to consult with a Benchmark VA Home Loan Specialist. They have studied the VA loan inside and out, and understand how to get veterans the most from their hard- earned benefits. Schedule a consultation today, and start learning from the experts about the VA Loan program.
Benchmark never quits.