"The only limit to our realization of tomorrow will be
our doubts for today." --- Franklin D. Roosevelt
Good news! The VA has removed the maximum limit on home prices. Last year, if you bought a home and had a VA loan, a limit was set based on the maximum limit on home prices as part of The Blue Water Navy Vietnam Veterans Act, set by the Federal Housing Administration which was subject to an annual adjustment, i.e., $484,350.00 for most of the country. As of January 1, 2020 the limit has been REMOVED!!! The caveat is the lender for the borrower may still issue a cap and deny a large loan --- BUT the denial won't be due to VA home loans. It is WISE to choose the right VA Lender and that includes the right real estate agent who is experienced with the VA Home Buying process.
Traditional FHA loans require a minimum of 3.5% down. There are other loans for first-time home buyers as low as 3%; however VA loans still require no down payment for veterans and active duty military. In 2019 VA loans were up 2% over 2018. In all, 624,544 VA guaranteed loans were approved last year. With the removal of the VA maximum limit 2020 can be an even greater year for our Veterans who served.
For Millenials this is GREAT news! If you have relatives who served in Vietnam and purchased a home with a VA Loan in the 1970s, interest rates could have been anywhere between 8.5 - 10.5% or higher before 1980. Homeowners who purchased homes in the 1980 paid as high or higher than 18.63%. Between 2003 - 2009, interest rates fell to about 5.28%. With interest rates currently as low as they are today, almost anyone can't afford not to buy a home. If you are renting and calculate what a 30 mortgage costs today versus what you would pay to rent, would you really be able to retire?
What low interest rates have shown is that more people who own have built up enough equity to move up and still retire. Now is a great time to find out if you qualify for a loan and really could buy rather than rent. Oh, and by the way, something else to think about is the Blue Water Navy Vietnam Veterans Act deals with charges for funding fees when a VA loan is issued. In 2021, the funding fee for an active-duty veteran using a VA home loan will increase from 2.15% of the purchase price to 2.35% of the price. What a difference a year makes! Why wait?
I'm Certified as a Military Relocation Professional and I honor and respect all Vets. I am a homeowner because my humble beginnings began in 1979 with an approved 10.5% interest rate, no money down, VA Loan.
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