Veterans will be pleased to learn about some positive changes to the VA loan program.
Already, it is one of the most effective and user-friendly loans around. They are backed by the federal government and allow qualified buyers to skip on the down payment and monthly private mortgage insurance payments.
In 2020, VA loan qualifiers will pay less in fees and will have an easier time successfully applying for jumbo loans.
The Department of Veteran Affairs will no longer cap mortgage amounts. It’s one less obstacle for military members and Veterans seeking to buy prime real estate in Oahu, Honolulu and beyond.
Depending on your goal, this loan program will still rely on your income, debt-to-income ratio and credit scores.
The other good piece of news is the Blue Water Navy Veterans Act going to lower some of the VA fees.
Because the VA loan is guaranteed, applicants aren’t paying for mortgage insurance. However, they are still responsible for a funding fee, which in some cases will decrease. The new funding fee will be based on a matrix for those who pay a 5 percent or more, 10 percent or more, or nothing at all for the down payment.
The VA is also implementing a new fee schedule for cash-out refinancing.
If you’re a Veteran thinking about settling in Oahu, we hope you can take advantage of these exciting VA loan options. Our team members are well versed in these types of loans and have a great pulse of the Oahu region. If you’re ready to work with a team that’s local and puts customers first, please consider contacting us today.