VA Loan Benefits Law Passes Allowing Higher No Money Down VA Loans!

Vietnam Veterans just received a huge win through the Blue Water Navy Vietnam Veterans Act. Originally, non-disabled Veteran home buyers would pay for new VA benefits by increased VA loan fees. Actually, as much as .35% – .50% of the loan amount would be added in fees. However, the final version of the bill will lessen the burden of additional fees and supposedly add a smaller percentage to certain loans. In addition to providing more health benefits to Vietnam Veterans, there is another huge benefit for VA qualified buyers within this new law! Fortunately, there was an announcement that VA loan limits 2019 remove limiting VA loans to conforming loan size limits in most counties. In other words, current service members, Veterans, and surviving spouses have access to higher VA loan amounts with no money down. Furthermore, it was stated that VA funding fees paid by reservists and Veterans will be the same. Prior to this Act, reservists paid higher fees than Veterans.

Not only does this help Veterans, it also helps the real estate market.

What Exactly is the Blue Water Navy Vietnam Veterans Act?

Regretfully, many Vietnam Veterans have experienced serious, service-related health issues, mostly resulting from exposure to Agent Orange. One example includes Veterans contracting ALS or Lou Gehrig’s disease. Often, this doesn’t show up until later in life. Currently, Roger Dickie Long, a Vietnam Veteran who served in the 82nd Airborne, is fighting the dreadful ALS battle. Due to serving on land, contracting ALS is presumed to be from exposure to Agent Orange and VA is providing assistance to keep him comfortable. Conversely, assistance has been lacking for service members who served off-shore of Vietnam and now have Vietnam related health issues. They are known as “Blue Water” Veterans.

The part of this wonderful Act which helps military buyers and homeowners is that VA loan limits are going away. VA loan limits 2019 and before were tied to conforming loan limits. Therefore, this is a huge win for several types of VA borrowers!

VA Loan Limits Removed for Most Veterans

As mentioned, the additional provision of the Blue Water Navy Vietnam Veterans Act allows home buyers to borrow above 2019 VA loan limits (in most counties). VA loan limits 2019 maximum was $484,350, but soon this limit is gone! This more liberal no down payment change takes effect for appraisals or VA guarantees dated January 1, 2020 or after.

So, who does this help? What does this mean? Without the loan limit, that means more buyers can purchase homes with no down payment. Before, buyers purchasing a home over the $484,350 loan limit had to bring a down payment. Luckily, buyers had access to VA jumbo loans when exceeding these limits, but now there is NO DOWN PAYMENT on these higher loans. That is serious help for buyers in higher priced markets as well as help for sellers in these markets. Plus, there is no jumbo loan that could compete with VA loans.

Other Benefits of Removing VA Loan Limits

Since the Act has just been signed, full details are not available yet. Although, we will stay on top of the details and VA will provide lenders with the particulars in an updated circular prior to 1/1/2020. Being that the limit is removed for most counties, it would allow higher loan amounts to more buyers and home owners. In the past, VA loan amounts have been determined by the available amount of the borrower’s VA eligibility. Thus, the VA certificate of eligibility would let VA lenders know if a down payment is required on large loans, if the borrower can have multiple VA loans at once, or if a down payment is required when buying after a prior VA foreclosure or short sale.

In each of these cases, it should allow borrowers to purchase or refinance at higher amounts while bringing no down payment. Details which need to be revealed to better understand the full benefits include:

• Which counties are excluded from “most counties”
• Is it no down payment up to $1,000,000?
• Are there other restrictions or requirements

As these details are provided by the Department of Veteran Affairs and investors, OVM Financial will be on top of it for VA buyers and homeowners.

Why trust OVM Financial for your VA home loan? OVM Financial underwriters are all VA SAR/LAPP certified. All of them! That is a very rare mortgage lender characteristic. Furthermore, several OVM loan officers are on the National Top VA loan officer list. As a result, OVM Financial is one of the top VA lenders in the U.S. Our military, Veterans, and surviving spouses have a VA champion in your corner that is looking out for your best home loan solutions! Therefore, look to OVM to provide updates as they are known.