Tag: VA Funding Fee Exemption

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New VA Loan Changes start on January 1st, 2020

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.

VA Loan Benefits for Disabled Veterans

All eligible veterans and active duty service members can take advantage of their VA loan benefit, but those with service-connected disabilities may be eligible for additional benefits when buying a home.

VA Funding Fee Exemption

The VA funding fee is a percentage of the loan amount that veterans using their VA loan must pay to offset the taxpayer cost of the VA loan program. Veterans who receive VA compensation for a service-connected disability do not have to pay this fee. The fee is 2.15% for regular military using the VA loan for the first time with no down payment. On a $250,000 house, that could mean savings of $5,375 if you qualify for the VA funding fee exemption.

Housing Grants for Disabled Veterans

The VA offers a grant program to assist with constructing, modifying, or purchasing a specially adapted home for veterans with certain service-connected disabilities. Typically, those with service-connected injuries including loss of or loss of use of both arms and/or both legs, blindness in both eyes, certain severe burn injuries, loss of or loss of use of both hands, and certain severe respiratory issues are eligible to receive a Specially Adapted Housing (SAH) or Special Housing Adaption (SHA) Grant.

The grant can help cover the costs of modifying your home to accommodate your disability, such as modifying rooms, walkways, flooring materials, ramps, walkways, and much more. You can learn more about the grant program and check your eligibility here. Because it is a grant, the money does not have to be paid back.

Property Tax Exemptions

Nearly every state has some form of property tax exemption for disabled veterans, but eligibility and benefits can vary widely across counties and states. Talk to your loan officer, tax advisor, or local municipal tax accessors office to see if you might qualify.

Understanding Your Benefits

An experienced loan officer who specializes in VA loans can help you navigate the VA loan process. The Veterans Home Front by Benchmark is committed to making your VA loan experience easy through our easy Certificate of Eligibility service and first-class service that ensures our veterans receive the American Dream of home ownership they deserve.

Ready to get into the perfect home? Check your eligibility to get started.

(Source: https://www.benefits.va.gov/homeloans/purchaseco_loan_fee.asp)