New Law Will Allow No-Down Payment VA Loans Over Conforming Loan Limits
I've got great news for your clients who are Veterans about the Blue Water Navy Vietnam Veterans Act of 2019, which was signed into law earlier this year.
Effective January 1, 2020: qualified Veterans with full entitlement can now buy homes higher than the conforming loan limits on VA-backed Loans without any down payment.
The maximum guaranty for a Veteran with full entitlement will now be 25% of the desired loan amount.
From the U.S. Department of Veterans Affairs’ website:
“Veterans will have greater access when using their no-down payment home loan benefit. Veterans seeking to obtain what are commonly referred to as ‘jumbo’ loans, or Veterans living in higher-cost markets, will no longer be subject to the Federally-established conforming loan limit maximums. After January 1, Veterans may obtain no-down payment VA-backed loans in all areas of the country, regardless of home prices."
Certain loan fees may be waived for Purple Heart recipients!
It’s important to know that the new changes are applicable for Veterans with full entitlement. The calculations for Veterans with partial entitlement are more complex so consultation with lender is crucial.
If you know a Veteran or active duty member of the Armed Forces who is looking to buy a home, let’s connect. #VA #ThankYou #You #Home #PurpleHeart
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