There are some new provisions coming to VA loan programs.
The U.S. Department of Veterans Affairs announced a change to the VA guaranty limits, which impacts the lender of the loan if the borrower is unable to follow through on payments.
The Blue Water Navy Vietnam Veterans Act of 2019 increases the maximum VA guaranty amounts for purchase, construction and cash-out refinance loans.
For instance, for loans above $144,000, the maximum amount of the guarantee will be 25 percent of the loan amount, regardless of the Freddie Mac conforming loan limit.
The provisions outline how to calculate the maximum guaranty available for various special situations, including entitlement considerations.
The Blue Water Act also sets the funding fee rates that apply to most of the common VA loan types.
The Blue Water Act also waives the funding fee for members of the Armed Forces who are serving on active duty and deliver a certificate/military orders proving they were awarded a Purple Heart.
Changes will go into effect for loans that close after January 2020.
The VA loan program offers our Veterans here in Hawaii, Oahu and beyond a chance of homeownership on special terms. The VA loan helps eligible Veterans purchase homes with little to no down payment. It’s the least the nation can do to honor our veterans.
If you need any help with a VA Loan, make sure to contact us today.