The Department of Veterans Affairs has eliminated the VA loan cap instead of raising the loan fees for veteran benefits. Signed into law on July 2, 2019, the new Blue Water Navy Vietnam Veterans Act will allow home buyers to borrow above the 2019 limit of $484,350 for most counties in the country without a down payment. The Senate unanimously approved the bill and President Trump has made it official.
This comes after decades of fighting for veterans to receive proper healthcare benefits for diseases related to Agent Orange exposure and the bill will fast-track a disability compensation for as many as 90,000 affected former service members.
In an earlier draft, the cost of these benefits was simply being raised from .35% to .5% for non-disabled veterans but now, the National Association of Realtors has lobbied against an increase and instead approved a bill to reduce the proposed fee increases and completely eliminate the cap on mortgages.
As a Realtor, we have supported efforts to boost veteran participation in the program. The VA loan guarantee fees should be based on the risk of the loan made, not the cost of other VA programs. The National Association of Realtors is a strong supporter of the VA home loan guarantee program and pushes to ensure that the American dream of homeownership is available to everyone. This encourages private lenders to offer favorable loan terms to qualified veterans.
So what does this mean for you? If you are an active, reserve, or former member of the military service for our country you no longer have to keep your loan limits for a new home loan under a certain amount. Be sure to talk with a lender in your area or if you're in the Columbus Ohio area give me a call. (GET MORTGAGE PRE-APPROVED NOW) I have connections to several VA loan lenders that can assist in the specific details when it comes to applying for a VA loan.